The herald., 1895-12-27

current expenses. and thus has furnisneu
$133,OOO,OOO of governmental demand
notes to be again and again used to draw
gold from the treasury. 1t is evident that
80 long as there is insufficient revenue this
performance will go on and bond sale after
bond sale will be required. 1t is also evil
dent that If there had been a suificiency of
revenue 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 inaugurated 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 dis
position to present these notes for redemp-
ton would soon have been overcome. That
would undoubtedly have been the case il
the redemption fund had been increased in
the spring of 1850 and never allowed tc
fall below the $1OO,O0O,OOO minimum.
And the necessity for more revenue from
the point of view of the maintenance of the
redemption fund is taken away BY the fact
that we have 100000 of cash in the
treasury in addition to the 100000 900
(goldD required for the redemption fund
and the twenty odd millions required as u
working balance.
This SOC, 100000 represents $5O.O0O,-
600 of redeemed United States legal ten
der notes, for whose redemption we bor-
rowed $5O,O00,000 in gold. If we con-
tinue to pay them out to meet a deficiency
OF revenue, then presently they will come
back again to draw $50,00O,OOO more
from the treasury. which we must supply
by selling $50,O00,O0O more of bonds.
The suggestion, therefore, that we need no
more revenue because we have cash bal
ance of O.0O0,O0O of government notes
in the treasury that can be used to pay any
dpfinInnnU a 10
in elect. a proposition to issue bonds to
meet a deficiency which should be met at
once by providing that revenue. In other
words, those who oppose raising more rev.
enue in such situation, in effect-whether
they intend to do SO or not-favor borrow
ing in preference to paying as we go along.
Your committee believe that it is the
duty of the house of representatives, to
which body the constitution admits the
inauguration of revenue bills. to frame and
pass measure that will yield not far from
$40,OOO,OOO, sufficient to put an end TO a
deficiency-and to do this without delay
too-leaving to others whose cooperation
is required to finally place such legislation
on the statute books to meet the RESPONSE
blity in their own way.
The presidents special message, setting
forth so pointedly the seriousness of the
situation and the necessity for the prompt
est action, only emphasizes the duty of the
house.
Iu response to the urgent call of the
president, your committee has felt inn
PEELED to act with all possible dispatch.
Two facts have led your committee to look
to an increase of custom duties as the
most appropriate source OF revenue. They
are, first, the fact that we are already
raising disproportionate amount from in-
ternal revenue, which has always been re-
garded as war resort-irdeed, jefferson
took the ground that excise taxes should
not be resorted to by the federal gov
eminent sources of revenue in
time of peace, and the Democratic
national convention maintained he same
doctrine in 1894; and secondly, the fact
that by increasing customs duties on inn
ported articles, which we can and ought to
produce or make at home, for revenue
purposes, we can at the same time incl
dentally encourage stricken industries 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 a demand fof gold
for export which our treasury has been
cal ed upon to supply. For SO long as the
balance of trade is against us on account
OF the excessive imports, we must export
gold, or what is the same thing, promises
to pay gold, to pay for the excess of inn
ports over exports.
Your committee has not undertaken a
general revision of the tariff on protection
iiies, as tAc illdJ)rlty nope cau De uOflo In
1S97-9S, not only because they know that
such tariff legislation would stand no
chance after becoming law. but also be-
cause a general tariff revision would re-
quire many months. and ,he need is more
re venue at once. We believe, however,
that this need of more revenue is so great
that simple mea sure increasing all duty
of the dutiable list, and taking from the
free list of the present tariff few articles
that were always on the dutiable list until
August 27. 1894. and which have always
been important revenue producers, and
limiting the operation of such legislation
to about two years and half,
enue is overcome, ought to re-
ceive the approval even of those who
do not favor protective duties, on patriotic
grounds; aud that the fact that it may in
cidentally encourage the production of
many articles that we require at home in
stead of abroad will not be regarded as a
ground of opposition under present circum-
stances.
In framing the bill submitted for your
consideration it has been necessary. if ac-
ton was haG promptly. to resort to con-
siderable extent to a horizontal raise of du-
ties, for the reason that it would have re-
quired months to deal with each article
separately. Horizontal dealings with the
tariff cannot be Justified in ordinary times,
but in such an eXigency as now exists, so
serious that the president felt it his duty
to send lis special message of extreme
urgency, and especially for a limited time.
it is not only defensible, but is the only al
tentative.
But, while we have presented in the brief
measure reported, u horizontal increase of
. per cent of existing duties on all the
schedules but two, which is an addition Of
less than per cent 10 the average ad val
orem rate-givinR about ., 900 900 from
that source; vet more than $25, 900 900
of the S4O,OO0,O0O which it is estimated
the bill would add to our annual revenue,
will come mainly from wool, which is
taken from the free list and given a mod
crate duty, and from manufactures of
wool, which are given compensatory
duty equivalent 10 the duty on wool
(Which is always necessary when a
duty is placed on wooD in order
to give the woolgrower the benefit
and make it possible to manufac-
ture woolens at home. The bill reported
by your committee proposes to make the
duty on imported clothing wool 80 per
cent of the duty imposed by the act of
1890. which would give an equivalent of
6.6 of cent per pound on unwashed
wool, or about 40 per cent ad vaiorem.
This reduction from the duty of the act of
1890 has been made because the restora-
ton of the full duty might seem to be too
great a change from the present law, to
those whose cooperation it is necessary to
secure in order to have any legislation.
and not as measure OF what might be
done when all the branches of the govern
ment are in harmony with the majority of
the house on protection lines.
1rItv p1rrfn -