Omaha daily bee., 1889-12-05
THE 7REASURY REPORT.

uistuSocu III blc ItppIb VI hhc oSSNNboA
of the treasury are revenue reduction
and silver. Under the operation OF
existing laws the annual surplus OF
revenues after making due provisions
for the ordinary expenses OF the gov
crn ment, including the sinking fund, is
estimated at about forty-four million
dollars. This large sum taken out Of
the channels OF business and held in
the treasury must affect more or less
injuriously tho Legitimate enterprises
of the country. 1t imposes upon the
people, also, an unnecessary burden
from which they should be relieved.
There are two methods proposed for
reducing the revenue, one being q gem
eral reduction Of tariff duties and an
enlargement Of the free list, and the
other the repcal'of the tax on tobacco
and on spirits used in the arts and in
manufacturing. The first of these would
give the greater benefit to the
whole people. Reducing import
duties would not necessarily reduce
revenue. but it would effect n saving to
all con sumcrs of foreign products. The
repeal OF the tobacco and alcohol taxes
would reduce the revenues about thirty
seven million dollars. but it is not APP
parent that any advantage would re-
suit to onsumer The secretary of the
treasury, however, favors the repeal Of
these taxes. while as to the tariff he sug-
| gests a reduction in rates upon those ar
ticles, which, by reason of inconsiderate
legislation, or changes which have oc-
Cured in the development of our in
dustries, are found to be excessive, an
increase in rates upon articles which
have not been successfully produced
here because not adequately protected,
aud the transfer to the free list of arti-
cles which are not and cannot be sue
cessfully produced here aud articles we
cannot economically produce in sufficient
quantities TO meet the needs of our peo-
pie. The secretary argues against both
"A horizontal reduction of duties and n
tariff for revenue only, but he says that
n revision OF the tariff and customs laws
is urgently needed in order to emove
existing inequalities, some of which he
points out. He suggests that in the
construction of u tariff law in it's
broader sense reference should be had
not only to the changed condition OF
our domestic commerce and manufac-
lures since the enactment of previous
tariffs, but also to the cultivation and
extension of our trade relations with
those countries whose geographical sit
uation and resources are such as to
make intimate commercial intercourse
with them particularly desirable.
The position OF the secretary regard
ing silver is decidedly hostile to con-
tinuing the coinage of the silver dollar.
He declares this policy to be a disturb
ing element in the otherwise excel
lent financial condition of the coun-
try, and q positive h%indrance to
any international agreement look
ing to the free coinage of both metals
at a fixed ratio. He agrees that the
mandatory purchases by the govern
ment of stated quantities of silver, and
mandatory coinage OF the same into full
legal tender dollars, have proved futile
not only in restoring the value OF silver,
but even in staying the downward price
of the metal. The necessity of the Joint
use OF gold and silver as money is ad-
mitted, and after discussing and disap-
proving most of the plans which have
been suggested for solving the silver
problem, the secretary recommends as
promising the safest, surest and most
satisfactory solution the issue of treas
ury notes against deposits of silver bull
lion at the market price OF silver when
deposited. These notes would be re
deemable on demand in silver bullion
or in gold, at the option of the govern
ment, or in silver dollars at the option
OF the holder, and they would be receiv-
abler for customs, taxes and all
public dues, and would also
constitute a part of the lawful reserve
OF any national banking association.
The advantages which the secretary be-
lieves would result from the adoption OF
this policy are strongly stated, and in q
very convincing way he disposcs of pos
sible objections that may be raised
against it. Although this plan did not
originate with the present secretary OF
the treasury, he has given it its first
official recognition and careful elabora-
tion. 1t cannot be predicted with any
degree of certainty what attention il
will receive from congress-. 1t would
require tho repeal of the compulsory
feature of the present coinage act, and
a strong opposition to this is to be ex-
pected. But That it possesses merits
superior to those OF any other of the
plans which are suggested for solving
the silver problem, US the conditions
now are, must become obvious to all
who will give it intelligent and careful
consideration.
FOR THE SUPREME BENCH.