Delaware gazette and state journal., 1896-01-02
Report Of the Ways and Means Com.
mitlee to the House.
THE REVENUE is INSUFFICIENT
This is the Plea of Republican
Congressman.
MUST RAISE $4O,OOO,OOO ADDITIONAL


Dingley-h Demand for Higher Tariff
Fuli Text of the Report.
Washington, Dec. 26. = Chairman
Dingley of the ways and means COM
mittee to-day reported to the House the
Tariff and Bond bills agreed ON by the
majority of the committee. They were
accompanied by the following reports:
Tho committee on ways and MEANS to
whom was referred so much of the Presi-
dents annual message and 90 much
of the annual report of the Secretary
Of the Treasury as relates to revenue
and the condition of the Treasury and
also the Presidents special message
presenting the urgency of immediate
action by Congress in a direction cal.
culated to bring relief, reports:
That the committee appreciate the
seriousness of the situation and the I'M
portance Of prompt remedies, so far as
Congress can give them.
Your committee regard the chronic
deficiency of revenue for the past two
years and half as \ most potent cause
of the dici1iulties which the Treasury
has encountered, and an important fac
Tor in the creation and promotion of
that serious distrust which has par
slyzed business and dangerously shaken
confidence even in the financial opera
tions of the government. 1t is as i'm
possible for government to have CON
tinuous deficiency OF revenue for two
years and a half without affecting its
financial standing, as it is for an inCll-
vidual. 1t is impossible also for
government to continue in this condi-
tion without casting shadow Of doubt
and discouragement over all business
operations within its borders.
The serious fact which we are called
upon to confront is that in two and
half years that have elapsed since July
1st, 1893, this government has had an
insulficiency of revenue TO meet current
expenditures amounting in the aggre-
gate to about S133 000, 600. And even
in the first half of the present fiscal
year the deficiency will reach about
$50, 600, 600 and about So 000, 900 in this
present month.
And up to the present time there is no
sufficient ground for opining that this
insutficieucy Of revenue viii not CON
tinue during the remainder of the fiscal
year; and how much longer no one
can safely predict. If the consequences
Of such chronic deficiency were only
the necessity of borrowing money TO
meet current expenses in time of peace,
even this would afford abundant rea-
son for increasing tho revenue But
the consequences are more wide reach
ing than that. lnsufliciency of revenue
has made it necessary to use the re-
deemed United States legal tender
notes to pay current expenditures and
thus to supply additional means tu
draw gold from the greonbacS redemp.
tion fund, in short. to create the "end,
less chain, OF which the Secretary Of
the Treasury complains and which has
made it necessary to sell issue after
issue of bonds to replenish the reserve.
This will be clearly seen when it is
remembered that the Secretary of The
Treasury has issued and sold little
over Sl62, QUO, 600 of per cent 10 years,
and per cent 30 years bonds, from
which he has realized about SlS2, 600,
600 and after redeeming SlS2, 600, 0OC
of United States legal tender notes witt
the proceeds, he has been obliged tC
Immediately pay out Sl33, 600, 600 q
these demand notes to meet current eX
penditures and thus has furnished
sl33 GOO, coo of governmental demanC
notes to be again and again used tt
draw gold from the Treasury 1t il
evident that so long as there is in
sufficient revenue this performance vii
go on, and bond sale after bond sal
VIII he required. II is also eviden
that II thcre had been a sufliciency o
revenue these redeemed legal tende
notes would not have been paid out a
once, and there would have been s,
much the less opportunity to draw golt
from the Treasury Indeed, there i
good reason to believe that if in tn
first six months OF the distrust whicl
inaugurated the run on the redemption
fund, the Treasury had been receivin
revenue more than adequate to meet ey
penultures, 50 as to temporarily hold tn
redeemed government notes, the disnosi
non TO present these notes for rcdemr
tion would have soon been overcome
That would undoubtedly have been tn
case II the redemption fund had bee
increased IN. the sprng Of l5J3 in
never allowed to fall below the 800,
600, 600 minimum. And tho necessit
for more revenue from the puint {
view Of the maintenance Of the redemr
tion fund Is not taken away by the fat
that we have $50 600, 600 of cash in III
Treasury, in addition to the slGO, 00O
600 part gold required for the redent
tlon fund and the twenty odd milliur
required as working balance. Th
500, 600, 600 represents so 600. 600 Of ~
deemed United States legal tend
notes, for whose redemption we bo
rowed $50, 600 Geo in gold. II We col
tinue 70 pay them out to meet d
tclency Of revenue, then presently tht
will come back again 10 draw 500, 600
GOO more from the Treasury, which "
must supply by selling $50, COO, 600 mo-
of bonds. The suggestion, therefor
that We need no more revenue becaui
We have cash balance of $40, O00,O
Of government notes iu the Treasu,
that can be uaed to ray any dpHtent
for the next six or l. months ia.
effect, Il proposition - issue MOI
bonds to meet a deficiency which shou
be met at once by providing NOR rcy
nue..
In other words those who ouno
raising more revenue in such a slim
tlon, in effect, whether they intenjI
do so or not, favor borrowing in pr4i1
ence TO paying as we go along.
Your committee believeIhat il is n
duty Of the H0use uf Repragrnt4tiy.,
10 wh:5h body The constitution r,,r
mts the Inauguration Of rpgrune biI.
10 frame and was measure that "
yield not far from si0.UO.O .OGO. nj
hclent to put An end to Al drGgienr
ana to do this without GnlsM. Va
leaving to Others whose Co.ounfrfi6n
required 10 finally place susA ipt.al
tiun on tine statute bnolSs, ta meet L
responsibility lid thcir Gwn Way.
Ile President suocial mes mo. 81
ting forth 80 paintriy the sa- ,r5nr
Of the situation aud the ncra.5i.r
the promptt3t action only emp phasi2
I.f ~.