The Superior times. [volume] (Superior, Wis.) 1870-1912, 1884-12-13
THE TREASURY DEPARTMENT.
Report of Hugh McCulloch. Secretary of
the Treasury - His Remedy for the
Stagnation Resulting from Oyer-pro-
ductien - stimulation of the Foreign
Trade Seeesssry-TsriH Charges REQ
omAendeG.

WASHINGTON, Dec. From the mass Ct figures
submitted N the report Of Hugh McCullUch sec
retary OF the treasury il Is learned that the total
revenues OF the government for the last fiscal
year were sSfS. 5l9S6g, and that the expenditures
were sy1 9l6.71S leaving surplus OF S57, ,633 $50,
OF RBlch S54.u51 90 has been applied 10 bond IT,
dempfion. The actual and estimated revenue Tor
the oscal year lSss-5 is $50 oJ Go and the esti-
mated expenditures are s299, 000, co.. 0fthe reye-
nues expected during the ensuing year SIS, O0o,-
0Se VIII come from customs taxes and Sll5, 10000
from internal revenue. The secretary estimates
thet the treasury surplus in 1856 viii be not less
tnAn S3v,J90,uc1 and 7rgues that something
shou4d De done 70 relieve the people Of this un-
necessary taxation
After noting the mpid growth of the rlanufact-
uT1ng Int rests OF the country under the system
OF protec, ION and through the stimulus Of war,
until q point has oeea reached where the capac-
1ty OF the various manufacturing institutions far
exceed the demand from consumers the secre-
lary says: The al-importAnL question there
fore, that presses itself upon the public attention
ls, how shall the country be relieved from the
plethora OF manufactured goods, and how shall
plethora be hereafter prevented? Il Is obvious
that our power 70 produce is much in exceAs OF
the present or any probable future demand Tor
home consumption. The existing iron cotton
and woolen mills, II efnpl8ged al their full ca-
paclty, could meet IN six months- perhaps in 8
shorter tlme-the home demand for a year. Il
certain, therefore that uness markets now
practically closed against Us are opened. unless
We can share in the trade which is monopoized
oy european nations, the depression now so Sc
yerely felt win continue, and NAV be-
come more disastrous" The secretary sees
relief nom this unfavorable condition OF Affairs
IN me increase Of the foreign trade, and recon-
mends the appointment OF a commission 10 in
yesIlgate the subject-a commission composed
OF men not welded 20 the doctrines of fIee trade
or protection - lair minded men, who WI DrOs-
ecuIe the inquiry thoroughly, cOInprehensiblv
and lnpartIslly. he SAYS. when the real con
dlIlon Of our foreign trade and the character OF
the competition IN viii, we must soorer or LATER
engage are fully understood. il viii be found
that our inability 70 make that trade as free as
our best interests require hes in the necessity
NElcG exists IOr heavy import duties, which. 81
though they may be levied for revenue only.
must be IN q large degree protective. 1t is npon
sucn taxes, therefore, that our government
must mainly rely for its large current expendi-
lures anu Lle reduction Of the national debt.
Large revenues viii be derived from the taxes
upon whisky and tobacco if the tax on the latter
article should be retained but our chief revenue
must be derived from import duties 40 show
how these duties may be in posed and distributed
as 10 neither TinpeEll our manufacturers nor OBJ
slruct our foreign trade, while the treasury Il
Kept n an easy condition, VIII be the
tass OF the commission Secretary McCulIOch
says the proposed commission should regard two
points as settle That the public revenues are
not 70 be IN excess OF what may be required for
The support OF the government and the gradual
reduction Of the public debt; that our manu-
fScIures which, under The fostering care Of the
government, have attained sue b gigantic prUpor-
tons and whose prosperity is essential 70 the
welfare OF all other inieres, are not 10 be put in
jeopardy oy rapid and sweeping changes II the
Larlt, and that all reductions OF import duties
should be made with view TO their ultimate ad-
vantage by opening 10 them markets from which
they are now IL a large degree excluded. In view
OF the urgency Of demand. for relief the secre-
tsTy recommends the removal Of Ihe existing
duties upon raw materials which sre
70 De Used II manufactures He ssvs this
can be done IN the interest Of our foreign trade
he also recommends that the duties upon the
articles used or consumed by those who are the
lesst able TO bear the burden Of taxation should
De reduced This also, the secretary SAYS can be
effected without prejudice te our export trade.
" ~ regard 10 our internal revenue taxes"
says the secretary, l have 70 say that. as these
taxes, with the exception OF the tax u7.-u
whisky. ought not TO be and viii not be needed
Tor revenue II appropriations are kept within
TedSoLaDle pounGs and rigid economy IS stab
lished in all branches OF tie public service see
no go9G reason for their conuuuanCe- lakes upon
asricultuFal productions, although indirectly
is'let are lIleOtsisteTt with cur general policy.
ana tobacco IS The only one Of these productions
which has been taxed. An article which l. so
generally used ana which adds 50 much TO the
comfort OF the large numbers Of our population
who earn their living by manual labor, cannot
properly be considered a luxury, and - the col
lection Of the tax Is expensive and Troublesome
70 the government and = especially obnoxious
and irrlJa1Ive TO small manufacturers the tax
upon tobacco should, IN my Judgment, be re-
moved. The ta1 upon whisky could noi be re
pealed without disregard Of public sentiment.
nor without GREETING necessity Tor higher du-
ties upon imported goods. but while Tins j true
the TAX upon TIE alcohol used in manufacturing
might be reE1esed with decided benefit 20 home
industry snd 51eigu trade
on tae subject of our shipping interests Secre-
tary Actullosh urges the prompt removal OF the
unjust tariff txeS which have driven American
vessels from sle sea and p8ralyEed ship building
in this county He does not however. consider
the restoration OfOur merchant marine an easy
mstter NeAave been out OF The carrying trade
50 long and Dreign companies have such euOr-
mOus capita invested that an attempt on the
part Of theUnlted States 70 gain supremacy on
The seas vOud meet With most vigorous cOmpeti-
ton. He DEEMS government aid essentially nee
eSsSry, uuheSlt4ti1gly expresses the opinion
that without Il the foreign carrying trade viii re-
main IN the hands Of foreigners.
SecretaE- McCulloch's views in regard 10 the
coinage OF silver dollars are expressed in the
Presidents message He believes that unless
both the csiuage OF silver dollars and the issue Of
silver certificates are suspended there is danger
that Silve. and not gold may beoome our
metallic Standard
In conclusion, the secretary recommends that
immediate action be taken by Congress relative
10 the basis of nstioual bank circulation. now
seriously threatened by the rapid call for bonds
on whichir IS based, and that the system be con-
tinued Substantially as il now is, except that the
tax on circulation be repealed