Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-05
THAT SURPLUS EVIL
Receives Some Attention at the Hands
of Secretary Window.
A PLAN FOR TARIFF REVISION.
Subsidies Favored for the Benefit of the
Merchant Marine.
THE DANGERS OF SILVER COINAGE

Window has rendered his first annual re-
port to Congress. 1t is a very extensive
document Upon the subject of surplus
revenue and the tariff, he says:
During the II months ended October 81, 1889
there were purchased under the circular OF
April II, 1855, United States bonds 70 the
amount of S99. 233 $50. OF these 81 rs 4O0 were
obtained prior TO March 4 1859, and 800 S94s 5oO
after that date. Notwithstanding the dImln-
ished supply of bonds for sale in the markets
the Government has been able to obtain at
constantly decreasing prices SUFFICIENT amount
of bonds to meet the requirements OF bne
sinking fund for the current fiscal year ana
carry out the provisions of law respecting the
investment of the surplus revenue. Mnhe II
was necessary topay los for ~ per cent Donos
of 1891 purchased March g. lSe9, with q net
premium of 7.97, they were offered and ac-
cepted October 81 at l053z. the net premium
being 499. decrease in actual premium OF
nearly per cent. During the same perlou, or
from April to October 81, lSS9, the price OF
per cent bonds was reduced from l2S TO IL and
the net premium from 2S.9S to 1856, reduction
in actual premium of over ~ per cent
1t appears, from the foregoing estimates, tnat
after due provision shall have been made Tor
meeting the ordinary expenses OF the Govern
ment, including the requirements OF the SINK
ing fund, there will remain, under the operation
of existing laws annual surplus OF revenue
of about S44 600 600. An accumulation of money
in the Treasury beyond the necessities OF tne
Government endangers legitimate business,
tends to excessive and wasteful puohc e1pendl-
ture. and to encourage extravaganza IN prItate
affairs. In the presence of such conditions II is
a manifest duty to wisely guard against 2
future needless accumulation with its trultIul
train OF evils.
MEANS OF REDUCTION.
If portion of the surplus revenue can be
used to enlarge our foreign markets, and there
by advance our commercial and productive
interests it is the part of wisdom to SO applyit.
The strengthening of our coast defenses and
the building up of our navy, subjects of ma
tional concern. offer further opportunity for
wise expenditures that would return the money
directly to the people. But after making pro-
vision for such expenditures as may be proper
and reasonable for these purposes, large an
nual surplus will still remain under the opera
tion of existing laws. Reduction of the inter
est-bearing debt of the Government, by the
purchase of bonds, is the expedlenJ resorted to
for returning part of this surplus to the chan
nels Of trade, and is the only means now open
TO the Secretary of the Treasury for the use of
this money. To require from him this meas
ure of responsibility and discretion is Of doubt
full wisdom.
A possible successful appeal to this discretion
tempts individuals to rash business undeTtak-
ings, in the belief that the money IN the Treas
ury will be used to avert threatened disaster.
In the absence of such discretion in the Secre-
tary, the possible use of this money would
cease to enter into the calculation of the busi-
ness,World. Il is manifestly wrong to take money
from the people for the cancellation of bonds,
TO the saving of only about per cent Of inter
est, when it is worth to them, perhaps, three
times as much in their business. 1t is rather
through reduction OF customs receipts and
internal taxes that an unnecessary accumula-
avoided
The subject of exempting from taxation alco-
hol used in the arts merits and has received
much attention. 1t is estimated dpon careful
inquiry that about 100000 gallons of alcohol
are annually used in this country in a vast
1anr Of fnir
tions of common and needful use, as well as in
many of the important mechanical and indus
trial arts, from which tax of S., 4OOOOO Is col
leeted- Its use for these purposes would
doubtless be largely increased were it not for
this tax. which is equivalent to about $50 per
cent of its value. This is direct and onerous
burden upon our industrial interests and upon
the consumers of the articles produced, for
which there now seems to be no necessity or
excuse.
REVISION OF THE TARIFF.
Whatever differences of opinion there may |
be with regard to the best method Of disposing /
81 the surplus revenue, and preventing the &C
cumulation of money in the treasury beyond /
the proper needs of the Government, and how |
ever diverse may be opinions as to the abstract |
question of taxation for revenue purposes,
customs and internal there is general agree |
ment that revision Of the tariff and customs |
laws is urgently needed. believe it to be the |
dominant sentiment of the country that in |
the adjustment of duties imports, protee- |
tion to home industry should be a governing |
While there is a wide di- |
vergence OF Judgment on this proposition, |
it cannot well be denied that it is the settled |
policy of this Governments that such duties |
shall be so levied as to result in the protection
of labor employed in domestic industries from /
destructive foreign competition.
One of the fundamental objects in the levy
ing of duties on imports. declared in the pre-
amble of the first tariff act passed by Congress
Frvoe ha and
Of manufactures The doctrine thus pro-
claimed has broadened with our advancing
civilization and growth, and its wisdom has
been demonstrated by the marvellous develop
ment of those industries, protected by the high |
duties, demanded by the necessities of the
incident to civil war. 1t should.
however, be remembered that the prime object |
In the imposition of these high duties was the
raising of revenue, and rates were adjusted to
that END, rather than to the protection and de-
yelopment OF domestic industries. 1t came
about, therefore, that the measure of protec-
hon was capricious and unequal, and some in
dustries were greatly prospered. while others,
equally favored by natural resources and con-
ditions, either languished or failed of develop
ment
Furthermore, in the construction of tariff
law In its broader sense reference should be
: 9ao m not only TO the changed conditions of our
oomesblc commerce and manufactures since the |
enactment of previous tariffs but also to the
and extension of our trade rela- |
lions with those countries whose geographical
situation and resources are such as to make in
Innate commercial intercourse with them mar
-icularly desirable.
THE MERCHANT MARINE.
1t is but a few years since we stood first
among the nations in ship building and were
sxcelled only by Great Britain in the amount
IF our ocean tonnage Now, so far as foreign
'rade is concerned our ship yards are compar-
ltiTely silent. and our flag has almost disap-
)eared from the high seas. Once 70 per cent of
'ur tonnage was carried in our own ships; now
2 per cent is carried in foreign bottoms. Once
jur ocean commerce enriched our own conn
Tymen; now our immense tonnage of ex-
lorts and imports gives employment mainly
o alien labor, and alien capital levles
,sttmated at Sl50OO6.OOO for freights and fares
nor is this tribute the only, OF even the worst
eature of the case. for our farmers and |
mechanics are practically excluded from the
markets of the world, except as they may be
cached by the elrcuitous routes prescribed for
heir own advantage and convenience by our
,reat competitors in these markets. An over
public sentiment demands that this |
humiliation and loss shall cease If our in |
ustrial interests are to prosper, IL our COM
nerce Is to be sustained, extended and in |
reased, we must cease to be dependent upon
ny other nation or people for access to for
ign markets.
Doubtless there are serious obstacles in the
lay and they are greater now than they were
few years ago, on account of the Immense |
apitzl invested by foreign steamship COM
anies, with which we shall have to c6mnete
hese obstacles will constantly increase for
very year adds largely to the capital thus in
ested. Whatever is to be done must be done
romptly. We have tried the do nothing policy
ing enough. Its results are before us. and
ley are not satisfactory. Shall we accent as
levitable our present Illuminating and un-
ro6table position, or shall we use means at
lmmand TO regain our lost power and prestige
the ocean? Shall we give that protectlon !
Id encouragement TO our shipping interests
iat other nations give TO theirs, and which we
eely give to all our other great interests? or