The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-27

ury complains, and which has made 1t neces-
sary to sell Issue after Issue OF bonds to
replenish the reserve.
HOW THE ENDLESS cHAIN'' WORKS.
This will be clearly seen when it is
remembered that the Secretary of the
Treasury has issued and sold a. little over
$162. 100000 Of per cent. ten-year and per
cent thirty-five year bonds. from which
he has realized about sls2.O0OOOO and after
redeeming $1S2. 100000 of United States legal
tender notes with the proceeds he has been
obliged to Immediately pay out slss .ooO, 900
OF these demand notes to meet current ex-
penditures and thus has furnished s13s, 600 900
of governmental demand notes to be again
and again used to draw gold from the
treasury. 1t is evident that so long as
tnere Is insufficient revenue this perform
sale will be required. 1t is also evident
tnat II there had been a sufficiency of rev.
nn,,sd enue these hes ~ redeemed (egal-tender notes
there would have been so much the less
opportunity to draw gold from the treas
,,y. mry. Indeed, there is good reason to be-
neve that IL In the first six months of the
distrust which inaugurated the run on
the redemption fund, the treasury had
been receiving revenue more than adequate
10 meet expenditures. so as to temporarily
hold the redeemed government notes. the
disposition to present these notes for re-
come. That would have undoubtedly been
the case IL the redemption fund had been in
creased in the spring OF 1893 and never al
lowed to fall below the 500, 900. 900 minimum.
And the necessity for more revenue
from the point of view OF the maintenance
or the redemption fund is not taken away
by the fact that we have $50,0OG,000 of cash
in the treasury in addition to the $l00,0000 900
part gold) required for the redemption fund
and the twenty odd millions required as
working balance. This $50,O00,0OO repre-
sents s50.0O0,0O0 of redeemed United States
legal-tender notes, for whose redemption
we borrowed $5O,Ooo000 in gold. If We con-
tinue to pay them out 70 meet deficiency
OF revenue then presently they will come
back again to draw $4,000, 900 more from
the treasury; which we must supply by sell
ton, therefore, that we need no more rev.
enue because we have a cash balance of
$50, 1000 of government notes in the treas
ury that can be used to pay any deficiency
for the next six or twelve months, is, in
effect, a proposition to issue more bonds
to meet a deficiency which should be meet
at once by providing more revenue. in
other words. those who oppose raising
more revenue in such situation, in ef-
fect-whether they intend to do SO not
favor borrowing in preference to paying as
we go along.
DUTY OF THE HOUSE.
your committee believes that it is the
duty of the House of Representatives, to
which body the Constitution commits the
Inauguration of revenue legislation, to
| frame and pass a measure that will yield
not far from S4o,0o0,oo0. sufficient to put an
| end to defciency-and to do this without
| delay, too-leaving to others whose co-op-
Grafton is required to finally place such leg
| islation the statute books, to meet the
responsibility in their own way. And the
| Presidents special message setting forth
| so pontedly 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 cal of the
| President, your committee has felt impelled
| have led your committee to look to in
| crease of customs duties as the most ap-
| propriate source of additional revenue.
! raising disproportonate amount from in
| ternal revenue, which has always been re-
| garded as war resort-indeed, JEFFERSON
| took the ground that excise taxes should
| not be resorted to by the federal govern
ment as sources of revenue in time of peace.
ondtbe 9eHecratle z2Sis'nsln - 1Snyentlon isT. a
| secondly, the fact that by increasing Gus
| toms duties on imported articles, which we
can and ought to produce or make at home,
| for revenue purposes we can at the same
| time incidentally 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 CA
| endar year and which has caused de-
| mand for gold for export, which our treas
ury has been called to supply. For, SO long
| as the balance of trade is against us on ac-
| count of excessive imports we must export
| gold or (what is the same thing promise
| to pay gold, TO pay for the excess OF i'm
Your committee has not undertaken
| general revision of the tariff on protection
lines, as a majority hopes can be done IN
| knows that such tariff legislation would
| stand no chance OF becoming a law, put
also because general tariff revision would
REQUIRE many months, and there Is
need of more revenue at once;
1t believes. however, that this need need
of more revenue Is . SO 81 great ant,es shaf at
the dutiabe list and taking from the free
list of the present tariff few articles
that were always on the Suuaoie o,ass nss bfe, bne
important revenue producers, and limiting
the operation of such legislation to about
two years and a half-until the presen. oe
fcency of revenue is overccme-ought TO
receive the approval even OF those VINO 90
not favor protective duties, on patr1otic
grounds and that the fact that 1t may IN
cidentallv encourage the production OF many
articles that we require, at home instead OF
abroad. will not be regarded as ground
OF opposition under present CIRCUMSTANCES
THE HORIZONTAL INCREASE.
.Tn framing the bill submitted for your
consideration 1t has been necessary, If ac-
ton was to be taken promptly, to resort TO
q considerable extent to horizontal raise
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 as now exists, SO SER
ious that the President felt it his duty to
send YOU a special message of extreme urg-
ency. especially for a limited time, it is not
only defensble but Is the only alterna-
.But while we have presented in the brief
measure reported a horizontal increase OF
is per cent OF existing duties on all sched-
ules, but two of which is an addition OF
han
valorem rate-giving about $l5,OOO,UO reve-
nue. from that source; yet more than S5-
100000 of the $4,000. eco which it Is estimated
this bill would add to our annual revenue.
will come mainly from wool, which is taken
from the free list and given a moderate
duty, and from manufactures of wool.
which are given compensatory duty
equivalent to the duty on wool (Which is
always necessary when duty Is placed
on wooD in order to give the wool grower
the benefit and make IL possible TO manu-
facture woolens at home. The bill reported
by your committee proposes to make the
duty on imported clothing wool so per cent
of the duty imposed by the act OF 1890.
which would give an equivalent of s Clio
cents per pound on unwashed WOOL or
about 40 per cent. ad valorem. This reduc-
ton from the duty of the act of 1890 has
been made because the restoration or the
full duty in that act might seem to be too
great a change from the present law to
those whose cooperation il is necessary to
secure In order 70 have any legislation, and
not as measure of what might be done
when all branches Of the government are
In harmony with the majority of the House
lures of wool is increased by a specific
dutv equivalent TO the duty on wool The