Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1896-01-02

there is good reason to believe that if
in the first six months of the distrust
which inaugurated the run on the re-
demption fund, the treasury had been
receiving revenue more than adequate
to meet expenditures, so as to temper
arily hold the redeemed government
notes, the disposition to present these
notes for redemption would have soon
been overcome. That would have I'M
doubtedly been the case if the redemp-
ton fund had been increased in the
spring of 1898, and never allowed to
fall below the S100000,000 minimum.
And the necessity for more revenue
from the point of view of the main
tenance of the redemption fund is not
taken away by the fact that we have
100000 of cash in the treasury, in
addition to the S100,000,000 part gold
required for the redemption fund and
the twenty odd millions required as
working balance. This $50, 600, 900 of
redeemed United States legal tender
notes for whose redemption we Dor
rowed 100000 in gold. If we con-
tinue to pay them out to meet de-
ficiency Of revenue, then presently they
will come back again to draw S50,000,-
600 more from the treasury which we
must supply by selling $50,000,000 more
of bonds. The suggestion therefore,
that we need no more revenue because
we have a cash balance of $4,000 900
of government notes in the treasury
that can be used to pay any deficiency
for the next six or twelve months, is,
in effect, proposition to issue more
bonds 10 meet deficiency which
should be met at once by providing
more revenue.
In other words those who oppose
raising more revenue in such a situa-
ton, in effect-whether they intend to
do so or not-fayor borrowing in pref
erence to paying as we go along.
Your committee believe that it is
the duty of the house of representa-
tives, to which body the constitution
commits the inauguration of revenue
bills, to frame and pass a measure that
will yield not far from $40,OO0,O00 in
sufficient to put an end to deficiency
and to do this without delay-leaving
to others whose cooperation is re-
CURED to finally place such legislation
on the statute books to meet the re-
spCnsibility in their own way; and the
presidents special message, setting
forth so pointedly the seriousness of
the situation and the necessity for the
pron1ptest action, only emphasizes the
duty of the house.
I'm response to the urgent call of the
president, your committee has felt IN
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 adj
ditional revenue They are, first, the
fact that we are already raising a dis
prOpOrtionate amount from internal
revenue, which has always been re-
garded as a war reSOrt-indeed Jeffer-
son took the ground that excise taxes
should not be resorted to by the federal
government as sources of revenue in
| time of peace, and the democratic ma
tional convention maintained the same
doctrine in 1884 And, secondly, the
fact that by increasing the 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 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 calendar
year and which has caused a demand
for gold for export, which our treasury
! has been called to supply. For, as
| long as the balance of trade is against
us on account of excessive exports, we
must expect gold or (what is the
same thing promises to pay gold for
| the excess of imports over exports.
Your committee have not under
taken a general revision of he tariff
on protection lines, as a majority hope
can be done in i897-9S,not only he
cause they know that such tariff legis-
! lation would stand no chance Of be-
coming a law, but also because gen
eral tariff revision would require many
months and the need is more revenue
at once believe, however, that
this need of more revenue is so great
duties 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 Aug. q, 1924, and
which have always been important
revenue producers, and limiting the
operation of such legislation to about
two years and a half-until the pres
| ent 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 en-
courage the production of many ar
ticles that we require at home instead
Of abroad will not be regarded as a
ground of opposition under present cir
| cumStanCeS.
In framing the bill submitted for
your consideration it has been neces-
sary. if action was to be made prompt
ly to report to a considerable extent to
a horizontal increase of duties, for the
reason that it would have required
months to deal with each article sep
arately. Horizontal dealing with tar
ifs 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 a special mes
sage of extreme urgency, and especial
ly for a limited time, it is not only de-
feasible but it is the only alternative.
But while we have presented in the