St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-11-19
TARIFF REDUCTION.
The Probabilities Are That 1t Will
Rest for Time.

The Probabilities Are That 1t Will
Rest for Time.
| Specialize the Globe.
WASHINGTON, NoV 1s.-A special to
the New York World says: What will
the house of representatives do with
the tariff question at the coming ses-
sion? Will the Democratic leaders
permit the senate bill to pass the house
in an amended form, or will they stand
by the propositions outlined in the Mills
bill? These are questions which the
| half dozen statesmen now in Washing
| ton are discussing. The Democrats
generally say that the senate bill will
have no show in the house-that it is
framed upon a principle totally al yarl-
ance with that of the Mills bill, the
presidents tariff message and the ira
ditions of the Democratic party.
When during the recent session it be-
came apparent that the Mills bill would
be allowed to rest in the finance COM
mittee of the senate and that substi-
tute bill would be reported to reduce
the revenue, the report gained consider
able credence that the Randall faction
would vote for the senate measure.
This rumOr was based upon an explicit
statement made by Representative
Sowden that he would support snch a
bill. 1t was also said that Representa-
tive FOran would also vote for any
tartf-reduclng measure that did not
sacrifice the protective principle"
The day before the vote upon the Mills
bill was taken in the house Mr.. FOran
made carefully prepared statement, i'll
which he declared that, although he
could note vote for the Mills bill, under
no circumstances would he vote with
Republicans against it. This was ac-
cepte as diScreditng the story,S far as
IT. fOran was concerned, tnat the Sen
ate bill would be passed by Democratic
votes.
a careful canvass indicates that the
fate of the senate bill in the house will
he similar to that met by the Mills bill
in the senate. 1t will be pigeon-holed
in the ways and means committee. Mr..
Sowden may be prepared to vote for the
bill, but he will probably never have a
chance to do SO. The World correspond
ent has gathered from talks with num-
Der of prominent men that the Demo-
cratic leaders will make no attempt to
reduce the surplus by legislation, but
will depend upon the policy OF the sec
rotary of the treasury to Stave OFF any
danger that may threaten the country
from the piling I'D of the peoples
money in the treasury.
SECRETARY FAIRCHILD ON TIE SUR
PLUS.
''The surplus in the treasury at this
moment" said Secretary Fairchild to-
day, lis about SCI, 000.0 900, exclusive of
fractional silver coin. On the last day
of April it was as high as S110,000,000.
exclusive of fractional currency,
and at the present time it
would be enormous, if in the
ncantimc the greater part OF it had not
been spent in buying bonds. Under
the law and the resolution passed by
congress at its last session interpreting
the law the entire surplus is available
for the purchase of THESE bonds, and
the administration has taken advantage
of the power thus vested in it as far as
sound finance and proper care for the
interest of Uncle Sam would permit.
We invited holders of bonds to offer
them to us for purchase, and under
this invitation we nave purchased large
quantities of 4 and AZ per cent bonds
ever since. The per cents are now
growing too expense; holders are ask
ing too large a premium for them, and
So we have not been buying any of them
for some time. it is not because we are
not willing to buy them if offered at
reasonable prices, but we do not pro-
pose to pay for them the eXoTbitant
prices which are asked.
Last month we expended about $685.
100000 in the purchase of bonds, and
therefore relieved the surplus to great
extent. The bonds purchased for that
sum represented principal of about
S2S, 000, 900, so that we cannot reduce
our debt as fast as we can reduce the
surplus. In the two weeks that have
passed OF the present month we have
already expended about $),500,000 in the
purchase of bonds. In this way we
have managed to reduce the surplus to
the present low point"
HIS POLICY WILL NOT BE CHAINED.
''What will the surplus be on the 4th
of March, when your successor takes
charger"
Il cannot answer that question In fig
ures sad the secretary. "Of course,
so II t ing depends upon the receipts
,,ii .Apr.iIitureS of the department ne-
tween now and then. and upon the
amount OF money invested during that
time in the purchase Of bonds. A reply
to your question would imply state
ment as to what the policy of the adj
ministration will be in regard to pur-
chasing bonds during the remainder If
lns presidential term. / can answer
your question so far as to say that the
C ,urse of the treasury department wi |
C ,ntinue unchanged. The entire SUI
plus, whatever it may be, is available,
as said before, for the purchase of
bonds but it is not imperative that all
or any part of it should be expended in
that way. just as fast as bonds are
O fered to me at whatI consider terms
adv inta seous to the government |
shall purchase item to the full extent
of the surplus; but If the AZ per
cents go up above a reasonable market
price, as the fOnrs have done, the buy
ing will cease at that point. There
will be no change of policy on account
Of the recent election"
The secretary does not believe any
tariff bill be assed at the com ng se5-
sion of congress. ~ was qulbe APP
parent" said he, that the senate and
house could not agree on tariff bill at
the last session of congress. and [ know
of no reason for believing that they will
be more likely to agree at the coming
short session"