FINANCES OF THE UNITED STATES. 



303 



barrass this department in disposing of the sur- 

 plus in lawful way, and with regard to econ- 

 omy. While it is asserted that there is strin- 

 gency in the money market, and that the busi- 

 ness community is in straits, the call of this de- 

 partment for millions of bonds is slowly heeded, 

 and its offer to purchase bonds is not in full 

 accepted. There is another way in which to 

 dispose of the surplus, namely, to enter the 

 markets and buy bonds at the current rates. 

 Calculations of experts show that, at the pre- 

 mium that now rules upon the 4 and 4 per 

 cent bonds, this could not be done without a 

 loss to the Treasury, which it is of doubtful 

 propriety to make. And it is almost certain 

 that an announcement of a purpose so to do 

 would enhance the market value of those bonds. 

 Meanwhile the daily receipts from the corn- 

 inanity by the Treasury continue, the surplus 

 over its needs increases, and money lies idle. 

 It seems that the plan most just, for giving re- 

 lief, is to reduce taxation, and thereby dimin- 

 ish receipts and surplus. 



'"The rapid reduction of the public debt and 

 the increase of the surplus in the Treasury pre- 

 sent the question to Congress whether there 

 should not be a reduction in the taxation now 

 put upon the people. It is estimated that, if 

 the present ratio of receipt and expenditure 

 is kept up, the public debt now existing may 

 be paid in the next ten years. In view of the 

 large sum that has been paid by the pres- 

 ent generation upon that debt, and of the 

 heavy taxation that now bears upon the in- 

 dustries and business of the country, it seems 

 just and proper that another generation should 

 meet a portion of the debt, and that the bur- 

 dens now laid upon the country should be 

 lightened. It is to be considered, too, whether 

 the seeming affluence of the Treasury does not 

 provoke to expenditure larger in amount than 

 a wise economy would permit, and upon ob- 

 jects that would not meet with favor in a 

 pinched or moderate condition of the Federal 

 Exchequer. In some quarters there is already 

 talk of an overflowing Treasury, and projects 

 are put forth for lavish expenditure, not only 

 to the furtherance of public works of doubtful 

 legitimacy and expediency, but in aid of enter- 

 prises no more than quasi-public in character. 

 Can a Government be justly said to have an 

 overflowing Treasury when there is an out- 

 standing debt against it greater than it could 

 pay if lawfully presented, and when its means 

 of payment in the future must be taken from 

 its denizens by burdensome taxation ? And 

 is it a beneficial exercise of governmental pow- 

 er to raise money by taxation in greater sums 

 than the lawful demands upon the Government 

 require, when those demands are of themselves 

 a heavy burden upon the industry and business 

 of the country ? " 



And again, in his annual report for 1882, he 

 said : "The Treasury Department was created 

 by act of Congress, chapter xii, of the year 1789. 

 By the second section it was made the duty of 



the Secretary ' to digest and prepare plans for 

 the improvement of the revenue.' The word 

 improvement meant enlargement. The need 

 was for more revenue, and the lack was of 

 subjects from which it might be taken. In 

 that sense that duty is now without care. The 

 times have changed. What now perplexes the 

 Secretary is not wherefroin he may get rev- 

 enue and enough for the pressing needs of th<3 

 Government, but whereby he shall turn back 

 into the flow of business the more than enough 

 for those needs that has been drawn from the 

 people. 



" It has not often occurred in public financial 

 history that embarrassment has arisen through 

 superabundance of revenues. The condition of 

 the country in that respect, while it illustrates 

 its almost boundless resources, and establishes 

 its credit beyond a question, presents difficul- 

 ties of grave character. 



"The accumulation in the Treasury of a 

 large surplus, which must occur unless imme- 

 diate measures are enacted for a reduction of 

 the revenues, is not to be placidly contem- 

 plated, and the question confronts us, In what 

 manner may it best be prevented ? " 



Soon after the beginning of the first session 

 of the Forty-seventh Congress, a bill was intro- 

 duced by Senator Morrill, of Vermont, author- 

 izing the appointment of a commission to in- 

 vestigate the subject of the tariff and internal 

 revenue laws. (See CONGRESS, UNITED STATES ; 

 also TARIFF REVISION.) A long and tedious 

 debate followed, resulting in the passage of an 

 act, approved May 15, 1882, creating a commis- 

 sion to consist of nine members, to be appoint- 

 ed by the President, from civil life, subject to 

 confirmation by the Senate, their duties, as 

 prescribed in the third section of the act, being 

 as follow : 



It shall be the duty of said commission to take into 

 consideration and to thoroughly investigate all the 

 various questions relating to the agricultural, commer- 

 cial, mercantile, manufacturing, mining, and indus- 

 trial interests of the United States, so far as the same 

 may be necessary to the establishment of a judicious 

 tariff, or a revision of the existing tariff, upon a scale 

 of justice to all interests, and for the purpose of fully 

 examining the matters which may come before _ it. 

 Said commission, in the prosecution of its inquiries, 

 is empowered to visit such different portions and sec- 

 tions of the country as it may deem advisable. 



In compliance with the fourth section of the 

 act authorizing their appointment, the com- 

 mission submitted their report to Congress on 

 the 4th of December, 1882, accompanied with a 

 proposed schedule of duties which they recom- 

 mended to the consideration of Congress as the 

 basis of a new tariff bill. 



As showing the motives which governed the 

 commission in making their investigations on 

 this all-important subject more seriously af- 

 fecting the revenues, for at least several years 

 to come, than, perhaps, any other which is 

 likely to come before the present Congress 

 the following extracts from their report are of 

 more than ordinary interest : 



