The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1884-12-11
SECRETARY M'CULlOCH,
His Annual Report to Congress Upon
the State Of the National
Finances.
Advising Reformation Of the Tariff
and Lower Duties in the Interest
Of American Commerce.

The report Of Hugh McCulloch. Secretary OF
the Treasury, il OF great length, but on several
questions Of vital interest TO ths financial and
commercial world II n cAcceding ely iiitcrcstinE.
From thu mass Of figures submitted II ii learned
Tint the total revenues OF the Government for
the last fiscal year were ssts.5io. 800. and that
plus OF ts7ho3,3od. Of which s5l.Ooo,o0O has been
applied to bond redemption. The actual and
estimated revenue for the fiscal year lss4-5 II
t3,o. .ooO and the estimated expenditures are
ta0oOo0tol Oh the revenues expected during
the ensuing year sls5. 900 will come from Gus
toms taxes, and sll5.ooo,ooo from internal rcve-
nnc. Tho Secretary estimates that the Treas
nry surplus In 1856 will be not less than 5oOOO,-
600, and argues that something should be done
to relieve the people Of this unnecessary tax.
alton.
The most important chapter In the report IL
devoted To fnreigi trade and taxation. After
spcaking OF the remarkable changes IN the
that to the fisc IN the value of lands icanlting
from the CONSTRUCTION OF railroads the wonder
fu increase Of the national wealth Is very largely
The condition Of the manufacturing interest Of
the United States Ia similar In some respects to
the condition Of the agricultural interest OF the
farmers then needed was n market I their
crops. Nhat manufacturers now need Is
market for their surplus manufactures. The
dustry was laid In New England under the first
tariff Of protective character, which diverted
part ot Its capital from shipping into cotton
factories. Those first constructed having been
fairly remnncrative, more were constructed,
and other branches Of manufacture were under
taken, until New England was converted from
maritime and commercial pursuits into manu-
featuring. II will DO rccollccted that New En-
gland was opposed TO the first protective tariff
that one. Of Mr.. wcbstcrs great speeches was a
frce~tradc speech.
II was not many years after the first cotton
mills were erected In New England that the
great iron industries Of the country began to he
developed, and Pennsylvania soon became the
Nor wae X long before various kinds Of manu-
iactnres came into existence In most Of the
the Government during the late civil war for
nearly all kinds of manufactured goods and
the high tariff greatly stimulated production.
h After the war stimulus was found in railroad
duced by supcrabundant currency. and the time
has now come when the manufacturing industry
Se,her. Of IN ronS e sas ,o
featuring companies have been forced into
bankruptcy: others have closed their mills to
escape s Il; few mills are running on full time:
operatives are either deprived Of employment
or are working for wages hardly sufficient to
nsm
the only sufferers by the present depression OF
our manufacturing industry. SO large and
: MI s 20 s,f
Il to the welfare Of the whole country, that ID
cannot be seriously depressed without injnri-
ously affecting business throughout the Union.
The all-tmportant question, therefore, that
shali the country be relieved from the plethora nora
81 msngissnred goods and how shall plethora
power to produce Is much in excess Of the pres
ent or any probable future demand for home
son n,an lrs.p The existing iron cotton and
could meet In six neutrality-suspicious. In q shorter
ttmc--the home demand for q year. 1t IL cer-
tain. therefore, that unless markets now practi-
caily closed against MS are opened, unless we
can share in the trade which IL monopolized by
European nations, the depression now 30
severely felt viii continue, and may become
The question how shall our foreign trade be
increased Is the question which now comes to
tho front and demands prompt and careful con-
Etdcfatfon. Manufacturers are primarily inter-
ested, but the whole country has stake in it's
solution In its investigation the tarif will
necessarily be involved, inasmuch ~ the rcla-
tons between IL and our foreign trade are 70
close that they cannot be considered separately.
but II need not I've involved except 40 far n II
stands In the way Of international trade II the
duties upon raw materials are an obstruction,
those duties should he removed. II the duties
should be modified. Whatever may be required
he 4 repeal or modification OF existing
duties should be demanded bv the manufactu-
rers themselves. How. then, shall the informa-
stands in the way Of an increased expectation OF
our manufactured goods be obtained? 1t
may not be proper for me to offer advice on
can see no better means than by the appoint
ment OF q commission. composed of men not
welded to the doctrines Of free trade or pro-
tection-fair- minded men, who would prosecute
the inquiry thoroughly, comprehensibly, and
fmpArtialty. II such a commission should I've
created, 1t should be done without unnecessary
delay.
The business Of the whole world has been re-
volutionixcd by steam power and the substitu-
ton Of machinery for hand work. II not the
inventor of the steam engine, Great Britain
took the lead In utilizing 1t in manufacturing,
and she thus became the great workshop Of the
world. For many years she had monopoly Of
manufacturing. The raw materials from nearly
al nations Vas taken In her own ships to her
ports and returned In manufactured goods II
has been the profit of this combination OF man
the riches, and most powerful OF nations Now,
however. all Western nations are endcAvoring to
use their raw materials ut home and to cncour
age and sustain their manufactures by pro-
tectivc duties. the effect Of which has been
general overprodnction.
It Is this great revolution caused by steam
power aud machinery and their general use that
win make the labors Of the commission arduous.
All the leading nations OF the world are now en-
gagged In manufacturing, and al but Great Brit
ann are ,sas Them I've IN s ss.
been conspicuous Has not the time come
when new departure is demandedp Golden,
one OF the ahlest and most far-seeing
OF British statesmen, predicted that the
United States would in time not only be-
come great manufacturing country, but would
become . competitor OF Great britain In the
some remarks upon the condition OF British
trade he said Members Of the House of Com
mons and others are constantly crying out that
there is very great danger threatening this
country from Russia. and they neglect to OBJ
serve that the great danger to the supremacy OF
the country il not in Russia, hut in the compe-
gfAxa n6s ha Init n kfntn as,f Ana
The present condition Of our foreign trade Ia
not rs fully understood by the public as 1t
ought to be, or there would lie greater uneasi
ness in regard TO what may he the result Look.
for instance, ut our trade relations with Brazil.
We sold to Brazil last year various articles TO
the amount Of $s.6t5,s6I. We bought Of her
amount OF $50. 2ss, ssa leaving s4l.6ao6es as the
balance against us: Now, how Is this large bal
ance nguidatcd? Not by gold, but by the sale
OF our farm products. for which there IL q large
demand In Europe. II IL our cotton, our wheat.
our petroleum, our beef and pork, (which
can be produced more cheaply in the United
sterling exchange that enables us to carry on
this one sided trade with Brazil. Now, If by
the failure of our crops, or very favorable sea-
cons on the other side of the Atlantic, or what
Ii more probable by retaliation, our exports Of
these articles should materially decline, what
then would he the condition OF our Brazilian
trade? Instead OF depending on the exports TO
Europe for means to cover the balance In favor
OF Brazi. ought not an effort be made to elualize
that trade by our manufactured goodst Ought
we not to endeavor to verify the prediction OF
Golden bv becoming competitor with Great
Britain in the Brazilian markets. Ought not
this TO be attempted in the interest OF our own
manufacturers
When the real condition of our foreign trade
and the character OF the competition in which
We must sooner or later engage, are fully un-
dersfood, IL viii be found that our inability To
make that trade ~ tree A. our best interests
reanir. lies In the necessity which exists fOl
heavy import duties. which, although they ma
lie levied tor revenue only, mus he in a large
degree protective.
Ii Ii upon sueh taxes, Therefore. that our gov
ernmeaf must mainly rely tor it, large eurlen,
expenditures and the reduction OF the national
debt. Large revenues will lie derived from tia
taxes upon whiekey and tobacco II the tax on
the latter article should lie retained. hut oui
chief revenue mnst be derived from import
duties. To show how these duties may be 80 i'm.
posed and distributed a. TO neither imreril oul
manufacturers nor obssrnct our foreign trade
while the Treasury Ii kept in an easy condition
| will be the task of the commission, That ths
task will he very diiiiculI one IL certain; thai
| II may lie successfully performed ought to b,
| certain also.
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