The Washington herald., 1907-07-03
WEDNESDAY. JULY 9, 1907.
The snrnIns and the Tariff.

The close Of the governments fiscal
year with a surplus Of $S7O0N,O0o induces
sundry reflections upon the good and evil
aspects Of so large an excess Of revenues
over expenditures. Twenty years ago, In
the presence of a Treasury surplus Of
somewhat larger dimensions. President
Cleveland sent TO Congress his famous
message urging a reduction Of tariff taxa
ton on the ground, among other things
that an accumulation Of moneys in the
Treasury IN excess Of the sum actually
needed for an economically administered
government constituted a grave public
danger and was a direct incentive TO ex-
travagance in Congressional apprOpria-
tions. We have long since outgrown that
old fogy notion. and the surplus is now
hailed with rejoicing as an evidence of
national prosperity, as a demonstration
that the conditions Of trade and finance
throughout the country are healthful and
sound. We seem to take it for granted
that a big country ought to have big
surplus, just as It should have a super
abundant revenue and whopplng appro-
priaton bills. We have so many uses for
our Federal income that the surplus is as
good as spent already, and we have a
President who knows precisely where
more money can be had when wanted.
Senator Bailey. however, was bold
enough 10 revamp the outworn dogma OF
economy in public expenditures the other
day in a speech 10 the embattled farmers
in Texas. He opened their eyes by telling
them that the Federal government an
nually cost twice as much as the total
cotton crop of the South. and that the total
cost Of American governments. Federal.
State. and municipal amounted 10 more
than the value Of the wheat, corn, and
cotton crops put together. You never
hear anybody nowadays talking about
economy in public expenditures. he said.
Everybody. from city COuncilme1 10 Con-
gressmen, was shouting for more money
70 spend. He thought It was time to call
halt all along the line. He ventured, in
this connection, to speak disrespectfully
Of the tariff. He asserted that It was con-
tTibUting TO swollen fortunes, and that it
bore upon the people with heavier exac-
tion than ever before. He even went so
Tar as 10 say the taxpayers were being
plundered by it. and that the substance
OF the land was being eaten mp BY t.
That Senator Bailey was not indulging
in mere hyperbole IS evident from the
facts as 10 the main source Of our in
creasing revenues, which IS tariff taxa
tion. Although Internal revenue taxes
We're S2l-ooo000 more this year than last.
tariff taxes We're $33. 10000 more. A large
portion Of this increase was collected from
raw materials used in manufacture or
from manufactures used IN further manu-
facture. This fact points 70 the vulnera-
bic spot in existing tariff schedules. Why
should an excessive revenue be collected
from materials which are used in domes-
tic processes Of manufacture? We sec
not the slightest justification for continu-
ing the present tariff rates on raw ma
terials. They could be materially reduced
with marked advantage to American IN
dustry and 20 the American consumer. II
the tariff should be thus modified. the
Federal surplus might be somewhat
smaller, but the surplus in the pockets
Of the people would be just so much
larger Why not try the tariff revision
method Of reducing the surplus-just now
a little out of date. to be sure, but bound
to come into fashion ere long?