The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-27

and after redeeming $1S2,000,0 900 Of
United States legal tender notes with
the proceeds he has been obliged to
Immediately pay out $133,000, 600 OF these
demand notes to meet current expendi-
lures and thus has furnished s133, 100000
of governmental demand notes to be
again and again used to draw gold
from the treasury. 1t is evident that
so long as there is insufficient reve-
nue. this performance will go on and
bond sale after bond sale will be re-
quired. 1t is also evident that if there
had been a sufficiency of revenues
these redeemed legal tender notes
would not have been paid out at once
and there would have been SO much
the less opportunity to draw gold from
the treasury. Indeed, there is good
reason to believe that if in the first
six months of the diStruSt which inau-
gurated the run on the redemption
fund. the treasury had been receiving
revenue more than adequate to meet
expenses, so as to temporarily hold
the redeemed government notes, the
disposition to present these notes for
redemption would soon have been over
come.
1t Might Have Been.
"That would undoubtedly have been
the case if the redemption fund had
been increased in the spring of 1889
and never allowed to fall below the
500 200, 900 minimum, And the neceS-
sity for more revenue from the point
Of view of the maintenance of the re-
demption fund is taken away by the
fact thai we have $4,000, 900 of cash
in the treasury, in addition to the $780,
100000 gold barr required for the re-
demption fund and the twenty odd
millions required as a working balance.
This $50,000,000 represents $4,000 900 of
redeemed United States legal tender
notes, for whose redemption we bor-
roWed $50,000000 in gold. If we con-
tinue to pay them out to meet a de-
fciency of revenue, then presently
they viii come back again to draw
$50,000,000 more from the treasury,
which we must supply by selling $780,
100000 more of bonds. The suggestion,
therefore, that we need no more reve-
nue. because we have a, cash balance
of 500, 900 of government notes in
the treasury that can be used to pay
any deficiency for the next six or
twelve months, is in effect a PROPOSE
ton to issue more bonds to meet de-
flciency which should be met at once
by providing more revenue.
In Other Words.
TN other words. those who oppose
raising more revenue in such a sit
uation. in effect-whether they intend
to do so or not-favor borrowing
in preference to paying as we go
along.
Your committee believes that it is
the duty of the House of Representa-
tives. to which body the constitution
admits the Inauguration of revenue
bills. to frame and pass a measure
that will yield not far from SAC, 100000,
sufficient to put an end to de-
fioin IL +I,gr !.
too-leaving to others whose co-opera-
ton is required to finally place such
legislation on the statute books to
meet the responsibility in their own
way, and the Presidents special mes
sage, setting forth so pointedly the
seriousness OF the situation and the
necessity for the promptest action
only emphasizes the duty of the
House.
I'm response to the urgent call of
the president your committee has felt
impelled to act with all possible dis
patch. Two facts have led your COM
mittee to look to an increase of Gus
toms duties as the most appropriate
~~''-re Of revenue They are first,
the fact that we are already raising a
U-SpfOOorLIunate amount from inter-
national revenue. which has always
been regarded as war resort-indeed,
Jefferson took the ground that excise
taxes should not be resorted to by the
federal government as sources of
revenue in times of peace and the
Democratic national convention main
tained the same doctrine in 1892. And,
secondly. the fact that by increas-
ing customs duties on imported arti-
cles. which we can and ought to pro-
duce or make at home for revenue pur-
noses. we can at the same time in
cidentally encourage stricken indus
tries and materially aid in turning
in our favor the balance Of trade
which has been so heavily against us
all through this calendar year. and
which has caused a demand for gold
for export. which our treasury has
been called upon to supply For so
long as the balance of trade is against
Us on account of excessive imports we
must export gold. or what is the same
thing, promises to pay gold, to pay for
the excess of imports over exports.
Revenue at Once.
your committee has not undertaken a
general revision of the tariff on protec-
ton lines, as majority hope can be done
IN ls97-9S, not only because they know
that such tariff legislation would stand no
chance of becoming a law, but also be-
cause general tariff revision would require
many months, and the need is more reve-
this need of more revenue is so great that
a, simple measure increasing ali duty OF
the dutiable list and taking from the free
list of the present tariff a few articles
that were always on the dutiable list until
August q, 1894, and which have always
been important revenue producers, and
limiting the operation of such legislation
to about two years and a half-until the
present deficiency of revenue is overcome
ought to receive the approval even of
those who do not favor protective duties.
on patriotic grounds; and that the fact
that it may incidentally encourage the
production of many articles that we re-
quire at home instead of abroad will not
be regarded as a ground of opposition I'M
der present circumstances.
'In framing The bill submitted for your
consideration it has been necessary, if
action was had promptly, to resort to a
of duties. for the reason that it would
have required months to deal with each
article separately. Horizontal dealing
with tariffs cannot be justified in ordinary
times, but in such an exigency now
exists. SO serious that the president felt
1t his duty to send us a special MESA sc
of extreme urgency and especially for a
limited time, II is rot only defensible, but
Is the only alternative.
The Bill Reported.
"6ut, while we have presented in the
brief measure reported, horizontal in
on all the schedules but two WIN
, an addition of less than s per cent to
the average ad valorem rate-giving about
s150O0 600 revenue from that source yet
more than 1000 900 of the $40 600 900 which
il is estimated the hill would add to ouI
annual revenue, will come mainly from
wool which is taken from the free list
and given a moderate duty, and from
manufacturers of WOOL which are given g
compensatory duty equivalent to the duty
/ on wool (Which is always necessary when