The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1884-12-05
NATIONAL FINANCES.
Salient Points in the Report of
Secretary McCulloch.
A Reformation of the Tariff and Lower
Duties in the Interest of American
Commerce Advised-Shipping
Interests and Coinage.
THE TREASURY DEPARTMENT.

ocCullOcnt GecFetdfy Oh the treasury, was
submitted to the House of Representatives
yesterday. 1t is Of great length, but, on sey
eral questions of vital interest to the fnan
cial and commercial world, it is exceedingly
interesting. From the mass of figures sub
rnitted it is learned that the total revenues OF
the Government for the last fiscal yeal
were 34Ss5l9,S69, and that the ex
penditures were S290,9l6,T73, leaving 8
surplus Of $57, 603,396 of which $4,000, 900 has
been applied to bond redemption. The actual
and estimated revenue for the fiscal year
lSS45 is S33O000,000 and the estimated expendi.
lures are S290,000000. OF the revenues ex-
pected during the ensuing year SIS, 900, 900
viii come from customs taxes and Sis, 900, 900
from internal revenue. The Secretary esti-
mates that the treasury surplus in 1886 win be
not less than S50O00,00O and argues that some
thing should be done to relieve the people of
This unnecessary taxation.
The most important chapter in the report
is devoted to foreign trade and taxation.
After speaking of the remarkable changes in
the Western States and Territories and as
sorting that ito the rise in the value of lands
resulting from the construction of railroads
the wonderful increase of the National
wealth is very largely attributable he saws.
The condition of the manufacturing interest
Ot the United States is similar in some respects
to the condition of the agricultural interest of
Lhe west IN The early days. What the Western
farmers then needed was q market for their
crops What manufacturers now need is a
market Tor their surplus manufactures The
real foundation of our great notwithstanding
industry was laid in New England under the
nfst tarln OF protective character which
diverted part of its capital from shipping
into cotton factories. Those first CONSTRUCTED
navIhg been fairly remunerative, more we're
constructed, and other branches of manu-
tacture were undertaken, until New En-
gland was converted from maritime and com
merciA pursuits into manufacturing. Tt will
De reeollected that New England was opposed
70 the first protective tariff.
1T was not many years after the first cotton
mills were erected in New England that the
great iron industries of the country began to
be developed, and Pennsylvania soon became
Union Nor was it long before various kinds
OF manufactures came into existence in most
OF the Northern ana Western States The
demands of the Government during the late
civil war for nearly all kinds Of manu-
3aotured goods and the high tariff greatly
stimulated production. After the war stip1r-
ius was found in railroad building and in ex-
traVagant expenditures induced by super
abundant currency, and the time has now
come when the manufacturing industry of
the United States is in dire distress from
plethora of manufactured goods. Some man
utacturing companies have been forced in
" bAl4hA upbEys DlnSIS nave closed their
mills to escape it, few mills are run
ming on full time and as a consequence
a very large number of operatives are
either deprived of employment or are working
Tor wages hardly sufficient to enable them to
i've comfortably or even decently. Nor are
manufacturers and their employees the only
sufferers by the present depression of our
manufacturing industry. So large and wide
spread has this industry become, SO inter-
woven is it with other industries, SO essential
IS IL to the welfare of the whole country that
Ut can not be seriously depressed without in
lunously affecting business throughout the
Union.
The all-important question, therefore, that
presses itself upon the public attention is, how
shall the country be relieved from the plethora
Oh manufactured goods, and how shall pletho-
IA ia hereafter be prevented 1t is obvious
ChaC our power to produce is much in excess
OF inc present or any probable future demand
Tor nome consumption. The existing iron
cotton and WOODEN mills if employed at their
Iul capacity, could meet in six months-per-
haps i'll a shorter time-the home demand for
a year. 1t is certain, therefore, that unless
markets now practically closed against us are
opened, unless we can share in the trade which
u mOnopollzed by European nations, the de-
preston now so severely felt viii continue,
and may become more disastrous.
Inc question how shall our foreign trade be
increased is the question which now comes to
me me 1ronG ana demands prompt and careful
consideration. Manufacturers are primarily
interested, but the whole country has stake
IN ITS solution. In its investigation the tariff
VIII necessarily be involved, inasmuch as the
felatlons between it and our foreign trade are
so close that they can not be considered
separately, but it need not be involved except
50 far us 1t stands in the way OF intcrna-
uonal trade, IT the duties upon raw materi-
ais are an obstruction, those duties should be
removed, Tx the duties upon other articles
are an obstruction, they should be modified
WhateVer may be required to increase our
foreign trade, whether it be repeal or a mod
ItYAS IT.. 4
manded by the manufacturers themselves
How, then, shall the information required for
a iull understanding Of what stands in the Way
OF an increased expectation of our man.
fractured goods be obtaiued2 1t NAV not be
proper for me to offer advice on this point
put can not tOrbear to say that l can see no
better means than by the appointment of a
commission, composed of men not welded to
the doctrine of free trade or protection-fair-
minded men, who would prosecute the inquiry
thoroughly, prehensibly and impartiallV
II such commission should be created, it
should be done without necessary delay
The business of the whole world has been
reVolutionlZed by steam-power and the sub
stitutton OF machinery for hand-worlz. It rs
TINS great revolution caused by steam-power
and machinery and their general use that will
make the labors of the commission arduous.
All the leading Nations of the world are now
engaged in manufacturing, and all but Great
brtaln are fencing themselves in by protect
i've duties. Among them the United States
come when new departure is demanded?
inc present condition OF our foreign trade is
not as full understood by the public as it
ought to be, or there would be greater un-
easiness in regard to what may be the result.
Look, for instance, at our trade relations
WITH Brazil, We sold to Brazil last year
various articles to the amount of S.
6l5,26l We bought of her various
kinds of her own production to the
amount of $50,265, $50 leaving Sal 1928 rs
the balance against us. Now, how is this
large balance liquidated2 Not by gold but by
the sale or our farm products, for which there
is large demand in Europe. 1t is our cot
ton, our wheat, our petroleum. our beef and
pork, which can be produced more cheaply in
the United states than anywhere else which
creates the sterling exchange that enables us
70 carry out this one-sided trade with Brazil
NOW, II by tho failure of our crops, or very
favorable seasons on the other side of the At
lanuc, Or what Is more probable, by retalia-
uon, our export OF these articles should ma
terlally decline, what then would be the con-
dlCon OF our Brazilian trade? Instead of de-
pending upon the exports to Europe for the
means 70 cover the balance in favor
of Brazil ought not an effort be made
to equalize that trade by our manu-
featured goods? Ought we not to endeavor
to verify the prediction of Golden by becom-
ing q competitor with Great Britain in the
Brazilian markets? Ought not this to be at
tempted in the interest OF our own manufact-
urers2
When the real condition of our foreign
NttuS anu inc CudEdCbeF OF lDD COf0pebItlOn IN
which we must sooner or later engage are
fully understood, it will be found that our in
ability to make that trade as free as our best
interests require lies in the necessity which
exists for heavy import duties, which, al
though they may be levied for revenue only,
must be in large degree protective.
Ii is upon such taxes, therefore, that our
Government must mainly rely for its large
current expenditures and the reduction of the
National debt. Large revenues will be de-
rived from the taxes upon whisky and tobac-
co, If the tax on the latter article should be
retained, but our chief revenue must be de-
rived from import duties. To show how these
duties may be imposed and distributed as to
struct our foreign trade, while the Treasury
is kept in an easy condition, will be the
task of the commission. That the task will be
very difficult one is certain that it may be
successfully performed ought to be certain
also.
In the commencement of its work the COM
mission should think regard the following
points as being settled:
i. That the public revenues are not to be in
excess Of what may be required for the sup
port of the Government and the gradual re-
duction of the public debt,
Z. That our manufactures, which under the
fostering care of the Government have at
tanned such gigantic proportions and whose
prosperity is essential to the welfare Of all
other interests, are not to be put in jeopardy
by rapid and sweeping changes in the tariff,
aud That all reductions ofimport duties should
De made with view to their ultimate advant-
age by opening to them markets from which
1ney are now in large degree excluded.
II Such commission as has been suggested
mad been appointed, and its work could be
a.1s~ 414x 81 i