The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-08-30
TARIFFS, REVENUES AND THE
PANIC.

In connection with the republican cry
that the tariff produced the money panic
it is worth remembering that the Nc
Kinley tariff was an important factor
in producing it. The object of the Nc
Kinley tariff was to cut off the revenue
of the government. The republican
party and all protectionists recognized
and proclaimed the simple truth that
the governments revenue could be re-
duced by increasing the tariff tax so
as to stop importation. and the Nc
KinIey bill was the practical application
of that system. The republicans had
heard so much about the surplus that
had been saved by Mr.. Cleveland that
they were determined to get rid of it.
and they stated so in their platform
OF 1888, and also stated how they would
do it. Note the words:
The republican party would effect all
needed reduction of the government
revenue by repeating the taxes upon
tobacco, which are an annoyance and
burden to agriculture, and the taxes
upon spirits used in the arts and for
vision of the tariff laws as will tend
to check imports of such articles as
are produced by our people, the pro-
duction of which gives employment to
our labor, and release from import du-
ties those articles of foreign production
except luxuries, the like of which can
not be produced at home.
The Mckinley bill carried out this
project, and reduced our revenues by
checking imports" and putting good
revenue producing articles on the free
list. The falling off in the tariff revenue
in 1892, as compared with 1891. was s42.-
100000 At the same session pension
legislation was enacted which increased
our expenditures on that account in
1899 $40. zoo. 900, and is estimated to make
in 1898 an increase over 1891 of sSo,OoO,-
OOO-in 1894. $40, OOO,O 900. Also the country
was required to purchase 54.OoO,OOO
ounces of silver annually, which at 20
cents per ounce would be $97,sO0,OO
Also the country was obligated to
pay bounty on sugar which amounted
to s7,342,O7S in 1892. and will probably
be $40, 900, 900 this year. In other words,
the congress of 1890 reduced our rev.
enues S42. 900 900 per annum. and in
creased our expenses about $50, 1000
per annum, and the question with finan-
ciers was how long we could stand it.
We stood it for two years. Then our
surplus was all gone and our expendi-
lures were S1O,OOO,OOO above receipts.
The moneyed interests of the world be-
came afraid that we could not main
tain our paper and silver money on a
gold basis. They began withdrawing in
vestments, and selling American securi-
ties. and a panic was precipitated.
The way out of the trouble is to
undo the mischievous legislation. Re
peal the sugar bounty. repeal the silver
purchase law, remove so much of the
pension list as is fraudulent, and re-
duce the tariff so that more revenue
will be received. Some people do not
understand how a reduction of tariff
rates will increase receipts. 1t is very
simple All the money the government
receives from a tariff is what is paid
on goods that are imported. If the rate
is put so high that no goods are i'm
ported the government would receive no
revenue at all. Our present tariff rates
have that effect on certain classes of
goods now. Hence a reduction of the
tariff which will let them come in will
bring more money to the government.
1t is on the same principle that the
Park theater pays the managers better
than the Grand or English's. The prices
are lower, but the audiences are so
much larger that the receipts are
greater. If you made the admission
free, of course the managers would re-
ceive nothing. A revenue tariff should
be adjusted. like a scale Of prices for a
popular show, so that the receipts of
the government would be the largest
possible. This means low rates. We say
that England has free trade, but En-
gland raises about s95, 900. 600 a year
from her tariff taxes. Under the in
creased duties of the Mckinley law
some of our dutiable imports decreased
in 1892 as follows: Brushes. $4,000;
buttons. s7SO,OOO; cement. s165.OOO; glycer-
inc, s165, 900: miscellaneous chemicals,
S54O. OOO;. cotton knit goods. $500 OOG; cot
tor, miscellaneous. 81 100000 feathers.
$500, 900; sailed mackerel, $500, 600; hemp,
81, 100, 900; oranges, S1,12O. 900; hops, $780,
900; iron hoops. 100000; fire arms, $780,
600; jewelry. s75O.OOO; manufactures of
metal, 100000; musical instruments.
s4OO, 900; cheese, $4,000; rice, $1,000, 900;
fiaxseed. 81. 35O, 900: manufactures of silk,
80 500. 600; spirits. SS5OOOO; tobacco. 49,
OeO. 900; vegetables. 81. 200. 900: champagne,
81 100. 900; wooden goods, $500, 600 These
illustrate the workings of the process
Of checking Imports policy that will
have to be changed if the government
wants revenue.
A GRIEVOUS DISAPPOINTMENT
The state board Of tax commission