CoNliKKSS. (THE DINGLEY BILL.) 



173 



doubt that if we are to stop this run on the T 

 urv. tu slop the is-ue <>f bunds to lie sold for gold 

 to maintain the redemption fund, that the first 

 thing in order, the lir.-t step, is to provide sufficient 

 revenue to meet the daily and monthly and yearly 

 expenses of the Government .' It is admitted that 

 we do not have sufficient revenue for these pur- 

 poses, and that the deficiency must be made up by 

 taking the redeemed notes and immediately paying 

 them out again. This is practically using the pro- 

 - of the bonds to meet the deficiency of rev- 

 enues of the Government. 



Now, how did it happen that from 1879 up to 

 1893 there was no serious run on the Treasury 

 gold ! We had the greenbacks existing during 

 that period, and preferred everywhere to gold. 

 But why f Because, in the first place, the revenues 

 of the Government were equal to or greater than 

 the expenditures: and there was no necessity for 

 creating an 'endless chain,' which must exist as 

 long as'there is insufficient revenue: in the second 

 place, because there was maintained a redemption 

 fund up to the minimum of $100,000,000, which 

 created confidence every day and every hour: and 

 third, because there was existing such a policy in 

 the country as put all the people at work, all the 

 spindles turning, and all the machinery moving, 

 while consumption was up to the highest point, 

 and prosperity existing in all directions. These 

 conditions have been set aside since 1893, and in- 

 sufficiency of revenue is a potent cause of existing 

 distrust. 



" As long as this condition exists I contend that 

 you may continue to sell bonds to maintain the re- 

 demption fund indefinitely, and yet. unless you 

 furnish sufficient revenue to carry on the Govern- 

 ment without a deficit at the end of each month 

 and each year, that you are making simply an end- 

 less chain which will sustain the run on the gold in 

 the Treasury a run inaugurated by distrust. 



4 'The first duty, then, that confronts the House 

 is to provide sufficient revenue to meet the expen- 

 ditures. How much revenue is required? Up to 

 Jan. 1, the close of the first half of this fiscal year, 

 the deficit will reach nearly $20,000.000, and", as- 

 suming that that condition will exist during the 

 next six months for it is hardly reasonable to sup- 

 pose that there will not be a deficiency during that 

 period it will bring the total up to at least $30,- 

 000,000, probably $:55.000,000. and this may be 

 greatly increased in certain contingencies. 



" Now, the majority of the Committee on Ways 

 and Means, in view of this situation, have felt it to- 

 be their duty immediately first in order because 

 first in importance, upon which everything else de- 

 pendsto provide about $40,000.000 of additional 

 revenue annually during this exigency. We do not 

 know how long this exigency may continue, but we 

 believe that it is safe in any event to provide $40,000,- 

 000 additional revenue annually for two years and a 

 half. Hence the measure which has been reported 

 by the committee is limited in its operation to two 

 years and a half, the additional revenue to begin on 

 the passage of the bill which has been presented 

 and to terminate on the 1st day of August, 1898. 

 It is exigency legislation which we have presented. 

 It is legislation demanded by the special condition 

 of the Treasury, to which our attention has been 

 called by the President of the United States. 



"The majority of the Committee on Ways and 

 Means, in looking around to see where this revenue 

 could be obtained, have agreed that it should be 

 obtained from the customs side of our revenue sys- 

 tem for two reasons : First, on the excise side we 

 already raise over $150,000,00!), which is all that 

 should come from internal taxes: second, it was 

 always the intention of the founders of this Gov- 



ernment to raise revenue for the support of the Na- 

 tional Government from duties on imports. 



" We have held, therefore, that it was our duty 

 especially in view of the fact that the balance of 

 trade during this fiscal year has turned against us. 

 and. having turned against us. has created a de- 

 mand for gold for export to raise additional rev- 

 enue by increasing duties at some points in order 

 that we might thereby increase the volume of goods 

 to be made in this country, incidentally, and at the 

 same time diminish the imports of that class of 

 goods, and thus turn the balance of trade in our 

 favor instead of against us. For it must be re- 

 membered that so long as the balance of trade is 

 against us gold must be exported to pay that bal- 

 ance, or else securities payable in gold, which are 

 precisely the same thing. 



" Therefore it seemed to us that for these reasons 

 we should look to the import side for the purpose 

 of raising $40,000,000 additional revenue. Look- 

 ing in that direction, with the urgent demand upon 

 us for instant action, we have, of course, found it 

 impossible to revise the tariff, especially upon our 

 ground ; and looking at the fact of the great ne- 

 cessity, we have decided, by the simplest possible 

 measure, to raise $40,000,000 or thereabouts of ad- 

 ditional revenue, and to stop this deficit that is 

 causing such serious injury to the finances of the 

 country. In raising revenue in this way we have 

 been obliged to turn, in large part, to a horizontal 

 increase of duty. 



" Now, I admit that under other conditions, when 

 there was no urgency, this would be an improper 

 way to modify the tariff for the purpose of obtain- 

 ing more or less revenue. But there is no time to 

 go through the tariff and to examine the condition 

 of each industry and adapt legislation to the wants 

 of each and make a thorough revision of the tariff. 

 Whatever is done, if it is to accomplish any good, 

 must be done at the earliest possible moment, and 

 it must be done in a way which will not provoke 

 the aggressive hostility of others who differ with us 

 on the point of the tariff in order to bring it into 

 law. And for that reason we have proposed, as to 

 a large number of schedules all the schedules ex- 

 cept the sugar and woolens schedules simply to 

 increase the duty 15 per cent, during the next two 

 years and a half. It is estimated that from this in- 

 crease of duty, on the basis of the imports of last 

 year under the existing tariff, we shall secure an 

 additional revenue of $16.500,000 or thereabouts : 

 but assuming that even this slight rise of duty. 

 amounting really to an addition of only about 8 

 per cent, ad valorem, may cause especially as to 

 those articles which this country can make for it- 

 self without any climatic disadvantage somewhat 

 of a decline in imports, we reduce the estimate of 

 revenue from this part of the bill to $15,000,000. 



" Xow. turning to wool, the great revenue pro- 

 ducer: Wool was placed upon the free list by the 

 act of 1894. unjustly, as it has always seemed to 

 me. to the farmers of this country. We propose to 

 take wool from the free list by the bill which has 

 been presented, and to give clothing wool that is, 

 wool of classes 1 and 2 a duty of 60 per cent, of 

 the duty given by the act of 1890, which is 6'6 cents 

 per pound as to most clothing wool. 



" 15ut as to carpet wools, we have retained the 

 same duty (32 per cent.) as provided by the act of 

 1890, simply for the fact that carpet wools are not 

 produced to any general extent in this country, and 

 therefore that t'he duty on carpet wools is essential- 

 ly a revenue duty. 



" Now. it is found by computation that should 

 there be an importation of wool during the next 

 fiscal year equal to the importation of the last year 

 we should obtain a revenue of $12,000,000 on wool 



