The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-12-11
THE TAR tFF.
Free Tobacco and Alcohol and Taxed Cloth
ing aud Machinery.

Free Tobacco and Alcohol and Taxed Cloth
ing aud Machinery.
Within our own borders a general condi-
ton of prosperity prevails. The harvests
of the last summer were exceptionally
| abundant, and the trade conditions now
| prevailing seem to promise a successful
season to the merchant and to the manu-
| facturer and general employment to our
working people.
The report of the secretary of the treas
ury for the fiscal year ending June 30,
1889, has been prepared, and will be pre-
scented to congress. 1t presents with clear
ness the fiscal operations of the govern
ment, and | avail myself of it 10 obtain
some facts for use here. The aggregate
receipts from all sources for the year were
! $685., 050,05S.S4, derived as follows: From
customs, sos, S32, 74169: from internal
revenue, $3.50, 8S1 ,5l3.92; from miscellane-
Gus sources, So, 335, S03.23. The ordinary
expenditures for the same period were
| S2S1, 996, CISCO, and the total expenditures,
| including the sinking fund, we're 1929,
/ 579,92S25. The excess of receipts over
/ expenditures was, after providing for the
sinking fund, S57, 40, 1853.
For the current fiscal year, the toal rev.
| enues, actual and estimated, are 1885,. 000,-
! 600, and the ordinary expenditures, actual
and estimated, are 1923, 000,0 00-making,
with the sinking fund, total expenditure
! of S34l ,32I 1869, and leaving an esti-
mated surplus OF S43,67S, SS3.0l During
the fiscal year there was applied to the
| purchase of bonds. in addition to those for
/ the sinking fund, 500, 456, 1925, and dur
| ing the first quarter of the current year
the sum OF S37, S3S. 937.77, all of which was
credited to the sinking fund. The rev.
enues for the fiscal year ending June 80,
! 1891, are estimated by the treasury de-
/ partment at $3.50, 100000 and the expendi-
! lures for the same period, including the
sinking fund, at S34l, 430, 477.70. This
shows an estimated surplus for that year
OF ST., 569, 522.30, which is more likely to
be increased than reduced when the &C
| tual transactions are written up.
The existence of so large an actual and
anticipated surplus should have the imme-
diate attention OF congress with view to
reducing the receipts of the treasury TO the
needs OF the government as closely as may
| be. The collection OF moneys not needed
for public uses imposes an unnecessary
burden upon our people, and the presence of
so large a surplus in the public vaults is a
disturbing element in the conduct of pri-
waite business. 1t has called into use ex-
pedients for putting it into circulation OF
very questionable propriety. We should
not collect revenue for the purpose of an
ticipating our bonds, beyond the require
ments OF the sinking fund, but any unap-
propriated surplus in the treasury should
be so used, rs there is no other lawful way
of returning the money TO circulation, and
the profit realized by the government
offers substantial advantage.
Nat onaI Bank Deposits.
The loaning OF public funds to the banks
without interest, upon the security of gov
eminent bonds, | regard as an unauthor-
lied and dangerous expedient. 1t results
in a temporary and unnatural increase of
the banking capital of favored localities,
and compels a cautious and gradual recall
of the deposits to avoid injury to the COM
mercial interests. 1t is not to be expected
that the banks having these deposits will
sell their bonds to the treasury so long as
the present highly beneficial arrangement
is continued. They now practically get
interest both upon the bonds and their
proceeds. No further use should be made
of this method of getting the surplus into
circulation, and the deposits now outstand.
ing should be gradually Withdrawn and
applied to the purchase of bonds. 1t is
fortunate that such a use can be made of
the existing surplus, and for some time TO
come OF any casual surplus that may exist
after congress has taken the necessary
steps for a reduction of the revenue. Such
legislation should be promptly, but very
considerably, enacted.
Keep Up the Protection.
| recommend a revision of our tariff law.
both in its administrative features and i'm
the schedules. The need of the former is
generally conceded, and an agreement
upon the evils and inconvenience to be
remedied and the best methods for their
correction will probably not be difficult.
Uniformity OF valuation at all our ports is
essential and effective measures should be
taken to secure it, II is equally desirable
that questions affecting rates and classi6-
cations should be promptly decided.
The preparations OF a new schedule OF
customs duties is q matter ofgreat deicacy
because of its direct effect upon the bust
ness of the country, and of great difficulty
by reason OF the wide divergence OF opin-
ion as to the objects that may properly
be promoted by such legislation
Some disturbances of business may
perhaps result from the consid
Grafton of this subject by congress, but
this temporary ill-etiect will be reduced To
the minimum by prompt action and by the
assurance which the country already en-
joys that any necessary changes will be SO
made as not to impair the just and reason.
able protection OF our home industries
The inequalities of the law should be adj
justed, but the protective principle should
be maintained and fairly applied to the
products OF our farms as we'll as of ouI
shops. These duties necessarily have re-
lations to other things besides the public
revenues. We can not limit their effects
by fixing our eyes on the public treasury
alone. They have ectrelation to home
production, TO work, TO wages and to the
commercial independence of our country,
and the wise and patriotic legislator should
enlarge the field of his vision to include
all of these.
Free Tobacco and Alcohol.
The necessary reduction in the public
revenues can, am sure, be made without
making the smaller burden more onerous
than the larger by reason OF the disabilities
and limitations which the process of reduc
J ton puts upon both capital and labor. The