The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-22

payments on account of civil and miscella-
neous Items were SIS, 262, 020; on account Of
e "a war department., sSs, 1850 72l: account
OF tne navy department, SIG. S3s,56S; on ac-
count OF Indians Sc, 35S 1893; on account Of
pensions; s76,576. S13, and on account of inter-
est on the public debt SAG coz 553 while Tho
average amount of expenditures for The same
objects during the SUI Feeding period Of seven
itsms was sas 700 &c For eiv and miscellaneous
s4s, ST.; for the navy department, s27 Ses'.
l64; for Indians, $40, 3e4, 3i4 for pensions
SlSo S2s S6l and for interest on the public
debt $31 ,213 341. The average annua, eycass
OF expenditures during the last neriod over
the expenditures for the same purposes during
the frst period was: For civil and miscei.
aneous items, NS,51S,S45 for the war de-
partment. $40, GIG 956; for the navy danarf.
ment, $l1 ,O29. 49S; for Indians, $3945. 5I5 and
LOT pensions $5S.751, 74S, the only decreases
being in the amount paid for interest on The
public debt, which was s14, 7s6. 211 less Der an
mum than during the first period
II does not appear that there has been any
S SUN Necessary extension or substantial inn
provement OF our public service as to Justify
these enormous increases in expenditnras
ana, IN my opinion. we have reached q
situation. which, not only forbids the favoraa
bic consideration of measures Calculated to
augment our annual outlay but which oh
vlousiy demands thorough revision of our
permanent appropriation laws and the en-
forcement of strict economy in future annual
legislation upon the subject.
PROBLEM OF REVENUE.
But unless our annual receipts are in
creased by improved business conditions or
our annual expenditures reduced, time
Will arrive when provision must be made for
additional revenue, and il the expenditure of
the government shall be increased by acts of
congress the necessity for such measure
Will arise earlier than the present situation
seems to Indicate
On the subject Of protection in this connec-
ton, the secretary says In part:
So long the income of the government
from customs and internal taxes exceeded its
expenditures the fact that protective duties
were destructive Of revenue although clear
ly apparent to all who observed the practical
operation OF the system did not attract the
attention OF the public generally but the
situation has been materially changed since
1892, and hereafter 1t will not be possible to
sacrifice revenue to protection without seri-
ousiy embarrassing the fiscal affairs of the
government, by depriving it of an income
sumclent to defray It's necessary expenditures.
II the usual appropriations of this income is
hereafter to be derived from taxes on imDort-
ed goods, the protective theory must be
abandoned as the basis of our legislation up
ON the subject, and well considered and
consistent revenue system must be substi-
tuted In its place; and in my opinion, this
can be done without material injury to any
trade or industry now existing in this coun-
try. The danger Of large foreign competi-
ton IN our home market and the alleged in
furious effects of such competition upon the
interests Of domestic labor have not only
been greatly exaggerated in the past but are
less now than at any time heretofore, and
must continue to grow less hereafter.
The number of our people in gainful occupa-
lions increased from II 1872, O99 in 1880 to %
1861 in 1890, gain of 5,343. 562; and while
the increase in all such OCCUPATIONS during
the ten years was 1912 per cent the in
crease in manufacturing and mechanical in
dustr1es which are supposed to be most sub
Ject to foreign competition 1913 per cent
further and most gratifying evidence of
our growing industrial power is to be found
IN the greatly increased exports OF the products
OF domestic manufacture, which now consti-
tute, for the first time in our history more
than one-fourth the total value of all our
4 1-nfC
were not, at least, equal in quality to similar
products of other parts of the world and If
the prices at which they are sold were not
as low as the prices demanded by our foreign
competitors they could not find market out
side the limits of our own country.
Inc expectation OF manufactured products
would not go on continuously year after wear
at an increasing rate unless there was profit
for our people in the operation nor unless the
markets IN which they are sold are in some
manner benefited by giving a preference to
the American article over like articles pro-
duced elsewhere. The annual increases since
1892 in the quantities and values of exported
manufactures, Notwithstanding the EXTREMELY
low prices which have prevailed in all the
markets OF the world, are without parallel
In our commercial history, and fournish such
conclusive evidence of industrial power and a
capacity to compete successfully with the out
side world In production and trade as ought
to convince our people that protective duties
on imported goods cannot be hereafter ilsti-
ned or excused upon the plea that they are
necessary for the encouragement Of capital or
OBJECTS OF TAXATION.
While revival of business and a return to
more prosperous conditions would Increase
the income of the government from customs
under the existing rates of duty on manu-
1actured articles, 1t is reasonably certain that
the quantities and values of such articles
hereafter imported will be less than thew
were before the depression began, and that
they viii not IN the future, under any rate
that may be established reach the propor- &,
lions of ten or fifteen years ago.
II this view of the subject is correct it "a
evident that new objects Of taxation must he
included in our tariff schedules or the at
tempt to secure the usual proportion of rev
enue from customs must be abandoned and
some other method of raising means to sun
port the government must be adopted; but
whether revenue shall be raised by duties in
imported goods or by the imposition of taxes
IN some other form, there are certain frInda
mental rules and principles applicable 10 tha
subject, which cannot be disregarded without
injustice to the people from whom, the exac--
lions are to be made The first and most i'm
portant one is that no tax should be Iaid
except for public purposes, and that all sums
paid by the people should be received by the
government Any tax, whether iufposst4 or
excise. which increases the cost Of commodi
ties to the consumer, beyond the amount COL
iected by the government is unjust and in
ciple. -
When the true principles of taxation are reo-
ognlzed and applied in our fiscal legislation
there will be no difficulty in Securing an
ample revenue for the support of the gov
eminent, in the exercise Of all it's proper
Iunctlons, without subjecting our industries
70 injurious and unnecessary burdens. or our
trade TO Injurious and unnecessary restric-
lions: Although the number of purely reynus
arucles has been much diminished by this
economic changes that have taken place dur
ing the last few years, such articles are stiIl
sufhcient in number, and they are and nusi
continue to be imported in such ouanfities 81
to afford, under moderate rates OF duty ali
additions to the income of the government
mat future ex1gencies may prove to be nee.
essary; and. no matter what NAV ha ~
preferences of any part Of our people upon
the subject, the necessities of the situation
which will utilize these resources.