The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-27

III we continue to pay them out to meet
a deficiency of revenue, then presently they
will come back again to draw $50, 600, 00O
more from the treasury, which we must
supply by selling $50, 900, 900 more of bonds.
The suggestion, therefore. that we need no
more. because we have a cash balance OF
500, 600, GOO of Government notes in the
treasury that can be used to pay any def
cheney for the next six or twelve months,
Is in effect proposition to issue more
bonds to meet deficiency which should
be met at once by providing that revenue.
In other words, those who oppose raising
that revenue in such a situation, 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 Representatives, to
which body the constitution commits the
inauguration of revenue bills, to frame
and pass a measure that will yield not far
from $4,000, 000-suffcient to put an end
to the defciency-and to do this without
delay, too, leaving to others whose CO.
operation is required to finally place such
legislation on the statute-books to meet the
responsibility in their own way; and the
Presidents special message, setting forth so
pointedly the seriousness of the situation
and the necessity for the promptest &C
ton, only emphasizes the duty of the
House.
"In response to the urgent call of the
President, your committee has felt i'm
PEELED to act with all possible dispatch.
Two facts have led your committee to look
to an increase of customs duties as the
most appropriate source of additional
revenue. They are, first, the fact that
we are already raising disproportionate
amount from internal revenue, which has
already been regarded as a 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 Demo-
cratic National Convention maintained
the same doctrine in 1884.
"And, secondly, the fact that by increas-
ing customs 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 encour-
age stricken industries 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 demand for gold for
export, which our treasury has been called
upon to supply. For so long as the bal
ance of trade is against US on account of
excessive imports we must export gold, or,
what is the same thing. promise to pay
gold for the excess of imports over the ex-
ports.
"Your committee has not undertaken a
general revision of the tariff on protection
lines. as a majority hope can be done in
1928, not only because they know that
such tariff legislation would stand no
chance af becoming law, but also because
general tariff revision would require
many months and the need is more Teve-
nue. at once. We believe. however, that
this need OF more revenue is so great that
simple measure increasing all duties of
the dutlable list and taking from the free
list of the present tariff 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 haif-until the
present deficiency of revenue is overcome
ought to receive the approval of
even those who do not favor protective du-
ties on patriotic grounds; and that the
fact that it may incidentally encourage
the production of many articles that we re-
Guire at home instead of abroad will not
be regarded as a ground of opposition I'M
der present circumstances.
I'm framing the bill submitted for your
consideration it has been necessary. if
action was to be taken promptly, to resort
to a considerable extent to a horizontal
raise of duties, for the reason that it would
have required months to deal with each
article separately. Horizontal dealings
with tariffs cannot be justified in ordinary
times, but if such an exigency as exists
now is so serious that the President felt it
his duty to send US special message of
extreme urgency, and especially for linn
tied time, it is not only defensible but is
the only alternative.
"But while we have presented in the
brief measure reported a horizontal in
crease of 10 per cent of existing duties on
all schedules but two, which is an addi-
ton of less than 8 per cent to the average
ad valorem rate, giving about SIS, 100000
revenue from that source. yet more than
$25, 100000 of the $40,000,000 which is esti-
mated this bill will add to our annual reve-
nue. will come mainly from wool, which is
taken from the free list and given mod
crate 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 it possible to
manufacture woolens at home.
1.-THE bill reported by your committee
proposes to make the duty on imported
clothing wool 60 per cent of the duty i'm
posed by the act OF 1890. which would give
an equivalent of &C. of a cent per pound
on unwashed wool, or about 40 per cent ad
valorem. This reduction from the duty of
the act of 1890 has been made because the
restoration of the full duty in that act
might seem to be too great change from
the present law to those whose co-opera-
ton it is necessary to secure in order to
have any legislation. It is not measure
of what might be done when all branches
of the Government are in harmony with
the majority of the House on protection
lines.