The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-12-02

for sterling exchange. Drafts on Japan could be as
easily negotiated in their ports drafts the Treas
urer of the United States
When the real condition of our foreign trade and
the character of the competition in which must
sooner or later engage fully understood it will be
found that our inability to make that trade as Tree as
best interests require lies in the necessity which
exists for heavy import duties which although they
may be levied for revenue only, must be IN large
degree protective.
It is upon such taxes, therefore that our govern
ment must mainly rely for its large current eXpendi-
lures and the reduction of the national debt Large
revenues will be derived from the taxes upon whisky
and tobacco if the tax Che latter article should be
retained but chief revenue must be derived from
import duties. To show how these duties may be
imposed and distributed as to neither imper our
manufacturers obstruet foreign trade, while
the Treasury is kept in easy condition will be the
task of the commission. That the task will be very
difficult is certain; that it may be successfully
performed ought to be certain also.
In competition with Great Britain in the South
American markets, Great Britain will have the adj
vantage by being already in possession Of the trade
but this advantage will doubtless be counterbalanced
by the abundance and comparative cheapness of our
agricultural productions. Thht are to be
q competitor with Great Britain in foreign
markets. especially in the markets of the
South American States is as certain anything
in the future can be. The steps which may be
needtul 10 make this competition successful it Will be
for Congress DO determine efter the commission has
performed its duty. 10 me it seems certain that it
can not properly be done before nation with fifty
SIX millions of people, doubling every twenty-five
years people distinguished for enterprise and in
ventive power in pc session of country of vast
tent and rich beyond comparison in developed and
developed resources ought not much longer to be pre-
vented from having full share in the honor and the
gain of international trade
In the commencement of its work the commission
should, think regard the following points as being
settled:
First-That the public revenues are not to be in
of what may be required for the support of the
government, and the gradual reduction of the public
debt.
Second-That our manufactures which under the
fostering care of the government have attained such
gigantic proportions and whose prosperity is essential
to the welfare of all other interests not to be put
in jeopardy by radical and sweeping changes in the
tariff and that all reductions of import duties should
be made with o view to their ultimate advantage by
opening to them markets from which they now in
a large degree excluded.
Something has been done, and more might be DONE
to increase foreign trade by reciprocal Treaties
but the advantage to be derived from such treaties
would be restricted and partial; and there very
serious objections 10 treaties which affect the public
revenues, on the ground that they are an eneroaeh
ment upon the rights of the House of Representatives
in which, under the Constitution all revenue bills
must originate.
AS to the persons who should constitute the COM
mission there will be various opinions 1t might be
composed of persons who have connection with
the government, or Of senators or menbers of the
House, but strongly incline to the opinion that it
should be composed of members of the House only
because, in the investigation of the subject of
foreign trade, questions affecting the public
viii necessarily be involved; and that members should
be selected from those who have been reelected TO the
Forty ninth Congress- in order that its work may be
be explained and defended by those who have per-
formed it. It would be advisable, also that the
Secretary of the Treasury should oficio be mem
Der of the commission in order that the views of the
Treasury Department and those of the commission
may be in accord
In the preceding remarks the tariff has been only
indirectly referred TO. From this it must not be in
ferred that not in favor of reform in the tariff
but rather that the subjects of the tariff and foreign
trade are so intimately connected that they must,
my opinion, be considered together. Have we not
reached stage when a policy should be adopted
which will embrace and harmonic the great interests
of the country!
If such commission as has been suggested had
been appointed and its work could be performed at
carly date, should not be disposed to say anything
bearing directly upon the tariff but relief from the
present burden of taxation is urgently and Justly de-
manded, deem it my duty to suggest that something
IN this direction should be done without delay
Owing to the shortness of time allowed to me for the
consideration of the subject, am not prepared to
name the articles upon which duties should be re-
moved or reduced. [ should regret this if Congress
not already in possession of the facts which should
govern its action. This much, however. it may be
proper for me to recommend:
First-That the existing duties upon raw materials
which are to be used in nanufaoture should be re-
moved This can be done in the interest of for
esn trade
Second-That the duties upon the articles used or
consumed by those who the least able to bear the
burden of taxation should be reduced This also
be effected without prejudice to our export trade.
The Secretary recommends the repeal of all
internal taxes except that on whisky. OF this
tax he says: "The tax upon whisky could not
be repealed without a disregard of public sentl-
ment, nor without creating necessity for higher
duties upon imported goods; but while this is
true the tax upon the alcohol used in manufaet-
uring might be removed with decided benefit to
home industry and foreign trade" The Seere
tary then gives series of tables, showing the
value of imports and exports, products of agr-
culture, and of manufactures, the principal
points concerning which are noted in the Presi-
dents message. He then enters upon an extend
ed argument in relation toour shipping interests
his conclusions being as follows:
| First-'That without government aid to United
States steamship lines the foreign carrying trade will
remain in the hands of foreigners
Seeond-That as ought TO have interest in
the business which create, aud the restoration
of shipping interest is important, if not essential
to the extension of foreign trade subsidies in the
form Of liberal payments for the transportation of
mails in some other form, should be offered as an
inducenent to Investments of capital in steamships
The amount of necessary aid would be insignificant
in comparison with what has been granted to manu-
tacturers 10y protective Dates and nothing would be
paid until the services were rendered If the subject
investigated it would be found that all the Eu
ropean steamship lines that led the way in the great
traffic by steam power have received government aid.
1t is admitted that all protective duties and subsidies
inconsistent with the teachings of political econo
my but true as these teachings may be in the abstract
they are dlsregarded by all nations when they stand in
the way of national welfare No rules equally APP
picable to all nations nor to the same nation in the
different stages of its growth Political economy is
not of the exact sciences 1t is rather adaptive
than exact and all nations regard it.
Protective duties were undoubtedly needed to induce
investment in cotton, iron, and woolen mills and
what not in the various lines of manufacturing
industry. Whether or not protection has been ex-
tended too long or too far and to what extent it
stands in the way of other great interests ques
tons that only be settled by full investigation.
Government aid is needed to induce investment
in shipping To what extent and for what period this
aid should be granted must be settled in the same
way.
The Secretary then treats of the public debt
and the condition Of the Treasury. After review
ing the figures of the debt from 1865 to Nov l.
1884, and netting the decrease in the principal
and in the interest charge he says
In the management of its debt the United States has
been example to the world. Nothing has so much
surprised European statesmen the fact that imme
diately after the termination of of the
pensive and liz respects exhaustive wars that
have ever been carried the United States should
have commenced the payment of its debt and contin-