The times. [volume] (Richmond, Va.) 1890-1903, 1892-11-20
THE SITUATION AND HOW TO DEAL
WITH III.

WITH H.
The washington Post OF Friday had
comnendious statement OF the Govern
,nent,a prescnt financial situation, made
an nrofessedy from the books OF the
Treasury Department. The Post dwehs
nader the caves OF the Treasury De-
nartment the sources OF information arc
onen 10 II and we have no doubt what
ovor that its statements are, therefore,
perfectly reliable.
The Post states that the Revenues OF
the Government for the current year VIII
he. from all sources, about Si5J,OOO'0O0.
and that of the appropriations for this
year. amounting to s5O7.OOO,OOO, the Gov
eminent cannot escape paying at once
as much as $3.50 100000. which does not
include the pension deficit Of Sl50O0,OO0
or $4,000, 600. The case then in a nutshell
is that we have 100000 with which to
pay certainly $3.50 100000. plus the pension
deficit. and possibly $507OoO,ooO plus the
pension deficit. In either event we must
face a serious deficit.
But this IS not all. The election re-
suited in instructions from the people
TO their law makers to reduce the tariff
duties. Reduction OF taxes means prima
facie reductions OF revenue. What is to
be done in the face Of this situation?
We know very definitely what are our
necessary expenditures, with the eXcep-
ton Of what the growing pension list
requires. The report Of the Secretary of
the Treasury for the year ending Octo
Der, 1891, shows that the civil establish
ment. with its accessories, calls for sl10
100000; the army and its accessories calls
for sB,0OOOOO the naval establishment
public debt calls for $4,000 900; the postal
service calls for $50, 1000, and the Indian
service for 5000 900. The pension roll
for that year called for sl24 100000, but
we know that it will go this year TO
s165 1000. We know then that we must
provide a revenue OF certainly as much
as these items amount to, and probably
to a good deal more.
the Same report Of the Secretary Of the
Treasury shows that we received that
year from internal revenue sl45, 900,
from the postal service SIS. zoo. OOO from
miscellaneous sources about $50, 900 900,
and the rest OF the revenue amounting
to $2l9. 900 from customs.
The internal revenue will probably re-
main the sane. The tax should be taken
Off Of tobacco, but 1t probably will not
be. The revenue from the postoflce will
probably be increased. but its expend-
lures will also increase so that no net
revenue will come from IL. The revenue
from miscellaneous sources will probably
remain about the same. To customs
duties we must look then for the amount
supplied by them in 1891, and for any
deficiency due to increased appropriations
and to an increasing pension list.
1t Is evident then that the customs
duties must be handled with the greatest
possible care and discretion. Duties
must in obedience to the instructions
lowered, but customs must be made TO
produce more than they did last year.
But lowering duties does not mean ne
cessarily decreasing revenue. The duties
on many articles are so high that i'm
portations Of them are excluded and they
therefore yield no revenue. Steel rails.
for instance. which ought to pay hand
some revenue, under the present prohi-
bitive tariff pay actually nothing. The
same is the case Of many other articles.
Duties can, therefore, be reduced at many
points, and an increased revenue be there
by obtained This presents to Congress
the true problem that it has TO solve,
and the session Of the Fifty-second Con-
gress about to commence should at once
address itself to the consideration Of it.
The committees Of this Congress should
fully digest and prepare a proper bill for
the revision of the tariff to be ready for
the Fifty-third Congress as soon as 1t
assemblies.