New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-04-18
RETEyUE AND THE TARIFF.

The present revision of our tariff and revenue
laws was undertaken for two reasons The first
was that the Dingley schedules were out of date
Conditions in international trade and domestic
industry have changed materially since 1871
There WAS an evident need of n twO-Schedue
tariff to be used in dealing with countries which
had adopted that system, the difficulties attend
ing the negotiation of special reciprocity treaties
having been amply demonstrated III our expert
enceS in reaching agreements with Cuba. Russia.
France and Germany. The American pubic
had become convinced that the Dingey rates
were. as A whole, too high and that the protec-
tion which they afforded TO domestic industry
was not eouitablv distributed. The trainers OF
the tariff legislation of 1909 have had TO meet
the problem of reducing excessive protection
and of furnishing a workable maximum-mini-
mum plan TO be used in obtaining most favored
nation treatment in foreign commerce. Ihe
Payne bill. as IL passed the House. was a long
step in the right direction, and it remains TO be
seen whether the Senate will approve and
broaden the Houses work or try to combat and
neutraliZe it.
But Congress has another problem on its
hands in revising the tariff. Since the passage
of the Dingley law the governments expendi-
lures have increased enormously. When the
war with Spain broke out extra internal taxa
ton was reSorted TO, and this taxation was not
repealed for three or four years. While 1t was
in force the governments ordinary income rose
from S405.OOOOoO in 1S97-9S 10 S5S7 .6SJ.O0O in
10000 The normal increase in customs re-
ceipts and in receipts from internal taxation
has lust about sufficed in the last six years 10
offset the loss OF the emergency taxes. Inc
rTreasurv's income in the exceptionally prosper
O1Is wear of 19O6-'0T rose TO 1868, 10000 But 1t
fell to S599.OO0G1O In 19O7-OS. little more than
no Of
the EXPANSION of the army and navy and the
constant extension of the federal functions our
annual expenditures have gone above the
high level reached during the Spanish War. The
ordinary expenditures for 19O1-oS were SoJ9'-
100000 and the expenditures for 190S-o9 will
be nearly S700.OO000O.
Congress will have. therefore, TO provide a
larger revenue than has been afforded by the
DingIey law. We called attention the other day
TO Chairman Payne's estimates OF the probable
Weld of the House tariff bill as it came from
the Ways and Means Committee. He figured
ont that ii would produce $S62, O65.O00, allowing
SOB 100000 for postal receipts. or $639,oO0,0G0
without postal receipts But should postal re
CENTS lust balance postal expenditures, there
would remain appropriations to be met in 1909
10 of $685. 100000. Mr. Payne predicted that
his bill would produce enough revenue to come
within S10oOOGO0 of meeting expenditures IN
1909-'1O. But he scaled down the amount need
ed to meet the appropriations of the last session
by calculating that > per cent of the money
voted by Congress for the next fiscal year would
remain in the Treasury as an unexpended bal
ance Five per cent Of the appropriations is
S46OO0OOO. The chance of this sums being left
unused is not very great The apparent deficit
under the committee bill was, therefore, S56,-
100000 instead of 100000. Moreover the
House voted ont of It duties expected to bring
in S1OoOOOOO and the Senate's changes so far,
if they should he held to include dispensing
with the inheritance tax, involve the loss Of
100000 more. The Senate measure as it
stands will apparently create a heavy deficit
Mr. Aldrich's promised statement tomorrow Of
the outlook for revenue viii therefore excite an
eager interest.