The San Francisco call., 1896-06-19


liquors, tobacco, and bank circulation, to
which, in 1886, oleomargarine was added
decided downward tendency in duties
began with the law of July IA, 1870, affect
ing many articles. Tea and coffee were
placed on the free list May /, 1872, and
June 1, 1872 cut of 10 per cent In duties
was made on most of the commodities on
the tariff schedules, while July l, 1879, qui-
nine was made free.
Before the latter date, however, an up
ward swing in duties set in. The panic OF
1873 reducing the Governments income,
the 10 per cent cut from the duties in 1872
was restored March 3, 1875. A few
changes, generally of minor Importance,
were made in the next few years, and on
March g. 1888, an act based IN a general
way on report of the tariff commission
appointed by President Arthur was signed.
The desire of the commission was to re-
duce the average duties about 20 per cent,
but the cut made by the law did not reach
this figure. The treasury surplus or ex-
cess of receipts over ordinary expendl-
lures, which amounted to 100000, 600 in
the fiscal year 1881, $145 100000 in 1882
and $133, 100000 in 1883, dictated the re-
duction in the last-named year. This is
rapid survey OF the changes IN the tariff
and internal taxes from the beginning OF
the war down to 1883.
In dealing with the finances the Repub-
lican party during the war period was
forced to create an immense debt, which it
refunded at lower rates of interest after
ward and then reduced to comparatively
crr oil An rot of o.
cessive loans with their varying periods
and interest rates, would be tedious, and
the matter will be touched on here in only
its larger features. On March 81, 1865, the
Governments obligations reached their
highest mark. which, in round figures,
was $2.s46, ,0O0, 000. OF this amount 81, $751;
00O, 900 bore interest-$830 900, 900 OF it at
Z $40 per cent. 81, ,282, ,000 600 at 6 per cent,
and $3.50, ,000, 900 at per cent. The annual
interest charge at that date was $151 ,000,-
600.
By successive refunding schemes the in
terest rate was cut to lower figures, and
through excess of revenue over expendi-
ture the debt was for years steadily and
rapidly red uce6. In 1891-94 the interest
bearing debt was at its lowest since 1852,
$685., ,000 COO, and consisted of $3.50, 900, 900 of
per cent bonds and $4,000, 600 of AZ per
cents continued at per cent. The an
nual interest charge at the time was $685.
600, 900. The interest bearing debt started
upward in 1894. Through successive bond
sales by President Cleveland the debt was
increased $50 900 in February, 1894, and
$50, ,000, 900 in November of that year, and
at the rate of per cent, and $63, 900, 600 IN
February, 1895, and 500, 900 in Febru-
ary, 1896 all at the rate of per cent.
As part of the same scheme to provide
money for the Government, which it did
through the sale of bonds, the National
banking system was created. At the be-
ginning of 1861 there were about 1900 banks
IN the country operating under the widely
different laws of the several States, which
banks had circulation of about $500, ,000,-
600. This comprised the greater part of the
country's currency, and these institutions
had about $4,000 900 specie, principally
of gold, against this currency and their
other liabilities. The banks suspended
specie payments December %, 1861. and
the Government did likewise on anuaTy l,
1862. On repeated recommendations from
Secretary Chase banking system based,
in some of its features, on the scheme in
vogue in the State of New York was
adopted. When first proposed i'll 1861
Samuel Hooper of Massachusetts, was
almost its only outspoken friend in the
House, and John Sherman was one or its
earliest and most active friends in the SEN
ate. 1t did not go through Congress until
year after the first greenback bill was
enacted. In the Senate the vote was %
twenty-five Republicans and one Demo
crat) for to u fourteen Democrats aud
seven Republicans) against, AMI in the
House the vote was 7S (seventysix Repub-
licans and two Democrats) for to 6S (thir-
ty-nine Democrats and twenty-five Repub-
licans) against the bill. fne bill was
signed by President Lincoln on February
25, 1863 On May 8, 1865, an &ct was passed
taxing the notes of State banks 10 per cent,
wiping out that element of the currency.
AS modified at different times, the bank
ing system created by the act of 1868 has
been in operation ever since.