The San Francisco call., 1897-03-20
Makes an Interesting Report,
Showing thu Necessity OF In
creased Duties.
Deficiencies That Aggregate Over
Fifty Millions Year Constantly
Increasing.

the measure, which was written by Ding
ley, is as follows:
For nearly four years our revenue has been
inadequate to meet the expenditures and pay
the interest on the war debt. The deficiency
during this period has been as follows; Fiscal
year ended June go s94, $69, ,SO3, 260; 1895,
S43, ,3O5, ,223; 1896, $25, ,203, ,246; 1897 (estl-
mated), 500, 10000 Total deficiency, $2O3,-
Sl1, ,729.
continuous deficiency of revenue for four
years, amounting IN the aggregate TO more
than 1908. 100000, or over $50 900, 900 per
annum In time of peace, with the official est1-
mate of the late Secretary of the Treasury in
his last annual report that under existing
conditions there will be further deficiency
of $45, 900, 900 for the fiscal year. which will
begiu on the first day of July next, aud the
further fact that the Government has been
obliged 10 obtain means 10 pay this debt by
borrowing $203, 100000, on which the people
are paying interest, clearly justiies the convo-
cation OF Congress to devise prompt and
adequate remedy.
The fact must not be lost sight of that while
the Government has during this time sold
bonds of the value of $262, ,315, 400, from
which it has realized 1898 4S1. .S94 in gold,
for the purpose of paying its Demand notes
presented Tor exemption, yet 1908, 900 600 OF
these notes so redeemed have been again paid
out to meet the deficit, and thus made avail
abe for second REDEEM ption requiring asecond
and third issue OF bonds. Thus 1t will be
seen that in the last analysis $203. 900, 900,
or, including the mntured Pacific Railroad
bonds, nearly $215, 900 900 of the $293 500.-
600 OF borrowed gold have been used to sup
ply an nsuficlency of revenue. And worse
sull, the practical use OF this reserve, or
(what is the same thing the notes paid from
The reserve TO meet these continuous def
ciencies of revenue, has been the potent cause
of the distrust which has existed in business
circles
Neither does the fact that on the first day of
March there was cash balance in the treas
ury OF nearly 1896, 100000, after deducting
= IN ilah fro Of M m
coin, change the necessity Of additional re-
serve at the srliest possible date, Tor the rea-
son that at least SIS 600 900 of this will be re-
quired to meet the deficiency between March
1 and July of the current fiscal year, leaving
only $3.50 900 900 in the cash balance on July
l next OF which $l50, ,O00, 900 is in gold that
ought TO remain in the reserve and not be
US to pay current expenses. This would
leave only $50, 000, 600 as the WORKING balance
next July, which is as small as safety permits.
The customs revenue under the act OF 1890
for the first full fiscal year of its operation
was S177 O00,G00. and for the second fiscal
year 1888 Was $203, 100000. with raw sugar
on the free list In October, 1892 before it
was known that radical reductions OF duties
were TO be made, the then Secretary of the
Treasury estimated that the customs revenue
for the fiscal year 1894 would be. 1920, ,000.-
600, on the basis OF the gradually increasing
receipts up 10 that time. But in January,
1894, he Informed the Committee on Ways
and Means that the anticipation of tariff
with lower duties would inevitably postpone
importations and diminish the revenue by
anticipation, wei as injuriously affect
business. This notwit hstanding the tariff of
1890 remained on the statute books during
July, 1884, yet the TACT that during that year
lower tariff was expected several months
before ii was finally enacted, united with the
arrest of industries and consequent reduction
of the consuming power OF our people, caused
postponement or abandonment of 1mpor ta-
tions 10 a large extent and thus partially null
lifted the tariff OF 1890 long before Its actual
repeal
The customs revenue for the fiscal year 1895,
ten months of which was under the act of
1894, was raised to $152, 600, 900 by deferred
en- sugar, and in the fiscal year 1896 to $685.
100000, OF which nearly $30,000.00O was
from sugar that had been placed on the free
list by the tariff OF 1890
The customs reserve under the present ia riff
for the fiscal year that VIII close June 80
next was estimated by Secretary Carlisle in his
last annual report at $14O 200, 900, and
would have fallen short of that amount If 1T
had not been for importatons and with
drawals from bond in order to avoid the an
ticipa ted revision OF the tariff and in TINS re-
port Secretary Carlisle estimated the revenue
from the custom receipts from the fiscal wear
coo, 600.
1t will be seen that while the revenue from
internal taxes has been well maintained the
annual revenue from duties on imports had
declined over $4,000, 900 since 1893 and
nearly 10000 compared with what
Secretary Foster estimated in October, 1892,
would be the revenue in 1894 under the ,arlf
OF 1890 on the basis OF the increasing receipts
for the year previous and then existing condi-
tions-coudi ions which were revolutionized
by the result of the National election a short
time after this estimate was made, as already
explained.
ii the customs revenue had con tinued to
gradually rise after the opening of 1898, as it
had before, or even If it had maintained the
figures of the fiscal year 1898, the revenue
would have been ample to meet all expepdi-
lures and the Government would have been
ton, OF issuing bonds to meet the deficiencies
OF current expenditures in time OF peace
The plain duty therefore of Congress-a
duty emphasized by the Presidents message
laid before the House on the opening day of
this extraordinary session-is to revise the
tariff, so as to secure a revenue from duties
substantially equal to what has been lost
| first, by the anticipated, and then by the par
| tally realized tariff reductions made by the
act OF 1894.
Another imperative duty resting on this
Congress is to so adjust duties in such Il re-
vision OF the tariff 10 secure needed revenue 10
carry on the Government as will better pro-
| ously suffered the past three years from un-
equal foreign competition and con sequent
loss OF purchasing power OF the masses OF the
people, upon which the demand for products
and prosperity OF every citizen depends
The wool and WOODEN schedule in this bill Is
| substantially that OF the tai if OF 1890, except
that few kinds of wool classed under that
and previous acts-as carpet wo0ls, which
| have been largely used for clothing purposes,
and whose use for a purpose not intended by
the old classification has caused much irrita-
tion among wool-gr0wers-have been trans
ferred from third-class 10 first-csss woods !;
and the exclusively ad valorem duties which
have previously given the manufacturer a
protection against his foreign competitor EN-.
ploying cheaper labor, and which enabled the
latter by differentiation OF the wide variety
of imported woolens, whose value could not
be definitely determined, 10 avoid a large par I
of the duty appearing on the face of the tariff,
have been converted as largely as possible into
specifics equivalent to whatever the present
law processes to give.
We believe that the enactment of this
schedule into law will not only restore to our
farmers the ol-growing industry which has
been SO seriously injured by free wool, our
| flocks having diminished more than fourth
since 1892, but will also revive the WOOL
manufacturing industry which has been so
crippled by the tariff of 1894 and the loss of
the purchasing power OF the masses OF our
people through lack Of employment and will
at the same time largely increase the revenue
from that source, which, because of the char
acter of the fine goods imported under the
tariff OF 1890, was partially derived from
luxuries.
We have increased the duty on sugar from
the 40 per cent ad valorem imposed by the
present tariff on raw sugars (now only nine
tenths OF per cent per pound on raw sugars
polarizing 80 degrees) on account Of the de-
cline OF the sugars, although about IL cents
when the tariff was enacted n 1894, 10 1853
cents with countervailing duty OH all sugars
equivalent to the net export bounty paid in
any country, in order TO increase our revenue
and al the same time afford sufficient protec-
ultimately produce whatever sugar we may