304 



FINANCES OF THE UNITED STATES. 



The practical question presented to the commission 

 is that of reconciling the interests of revenue, includ- 

 ing the considerations of its sufficient maintenance or 

 possible reduction, with justice to the interests of the 

 nation involved in the preservation of its industries 

 and the security of its labor. The legislation to bo 

 recommended is for the present, and not for posterity, 

 which must meet its own emergencies, and the deter- 

 mination of this question involves considerations of 

 expediency, not the least of which is, that the meas- 

 ures recommended be such as shall be acceptable to 

 the country and its representatives in Congress. It 

 must accept the facts that discrimination in the impo- 

 sition of import duties, a discrimination for the most 

 part positive and avowed, and always, at least, with 

 an incidental reference to the defense of the national 

 industries, has been the policy of the country for gen- 

 erations ; that in consequence of this policy thousands 

 of millions of dollars have been invested in special 

 pursuits ; that the whole business of the country has 

 been adjusted to the conditions of things growing out 

 of this policy, and is inseparably identified with it ; 

 and that a subversive or radical change in the present 

 economic system would throw labor out of employ- 

 ment, ruinously depreciate values, and create a gen- 

 eral industrial and commercial disaster. 



Early in its deliberations the commission became 

 convinced that a substantial reduction of tariff duties 

 is demanded, not by a mere indiscriminate popular 

 clamor, but by the best conservative opinion of the 

 country, including that which has in former times 

 been most strenuous for the preservation of our na- 

 tional industrial defenses. Such a reduction of the 



House of Eepresentatives, and in the present 

 state of public feeling on this subject it is to 

 be presumed that some action relative to a 

 revision of the tariff will be taken by the pres- 

 ent Congress. 



An effort was made to reduce internal reve- 

 nue taxation to the amount of $23,000,000 per 

 annum by the repeal of all laws imposing taxes 

 upon the capital and deposits of national and 

 other banks and bankers, including all stamp- 

 taxes on bank checks, drafts, etc., together 

 with the tax on matches and proprietary med- 

 icines, and a small reduction on cigars and 

 cigarettes, the amount of such reduction being 

 based upon a report from the Committee of 

 Ways and Means of the House of Representa- 

 tives. This measure, however, failed to become 

 a law. 



In his annual report to Congress for 1882, 

 the Comptroller of the Currency reported that 

 the number of national banks organized dur- 

 ing -the year ended November 1, 1882, was 

 171, with an aggregate authorized capital of 

 $15,767,300. Circulating notes were issued 

 to these associations amounting to $6,500,680. 

 This is the largest number of banks organized 

 in any year since 1872. Nineteen banks, with 

 an aggregate capital of $1,855,000, and circu- 

 lation of $1,440,800, voluntarily discontinued 

 business during the year. 



The resources and liabilities of national banks 

 at the close of business on the 30th day of De- 

 cember, 1882, are stated as follows : 



existing tariff the commission regards not only as a 

 due recognition of public sentiment and a measure of 

 justice to consumers, but one conducive to the gen- 

 eral industrial prosperity, and which, though it may 

 be temporarily inconvenient, will be ultimately bene- 

 ficial to the special interests affected by such reduc- 

 tion. No rates of defensive duties, except for the 



establishment of new industries, _ which more than RESOURCES 



Loans and discounts $1,225.889,530 22 



Overdrafts 4.566,683 75 



-,. , United States bonds to secure circulation. . 357.047,650 00 



positively injurious to the interest which they are Tnited States bonds to secure deposits .... 1 6,344,000 00 



supposed to benefit. They encourage the investment United States bonds on hand 15,492,150 CO 



of capital in manufacturing enterprise by rash and un- Other stocks, bonds, and mortgages 66,998,620 3f 



skilled speculators, to be followed by disaster to the V from approved reserve agents 



adventurers and their employ*, a/d a plethora of SfeSjS^":::::; 



commodities which deranges the operations of skilled Eeal estate furD j tl , r e, and fixtures 46,993,408 41 



and prudent enterprise. Numerous examples of such Current expenses and taxes paid 5,130,505 53 



disasters and derangements occurred during and short- Premiums paid 6.472,585 82 



ly after the excessively protective period of the late Checks and other cash items 16,281,315 67 



war, when tariff duties were enhanced by the rates of Exchanges for Clearing-House ^IMSV" J 81 



foreign exchange and premiums upon gold. Excess- f of^h ^onal banks . . 25,34 7 5 



ive duties generally, or exccptionably Tugh duties in gpecie viz 



particular cases, discredit our whole national economic Gold coin ' $47,091,083 27 



system, and furnish plausible arguments for its com- Gold Treasury certificates. 22,651,770 00 



plete subversion. They serve to increase uncertainty Gold Clearing-House cer- 



on the part of industrial enterprise, whether it shall tificates 28.235,000 00 



enlarge or contract its operations, and take from com- Silver coin ;:; r^IrSm 



merce, as well as production, tne sense of stability Silver Treasury certificates. _t464,4CO_00 



required for extended undertakings. It would seem Le-al-tender notes . 68,478,42100 



that the rates of duties under the existing tariff fixed, United States certificates of deposit for 



for the most part, during the war, under the evident legal-tender notes 8,475,000 



necessity at that time of stimulating to its utmost Five per cent redemption fund 15,778,491 



extent all domestic production-might be adapted, Due from United States Treasurer _ 



through reduction, to the present condition of peace, T , . <2 360 793 467 



requiring no such extraordinary stimulus. And in 



the mechanical and manufacturing industries, espe- LIABILITIES. 



daily those which have been long established, it Capital stock paid in $484,88349200 



would seem that the improvements in machinery and S u rp lus fund. 



processes made within [he last twenty years, aS the ^^ 



high scale of productiveness which has become a char- Amount on hand 4.507,255 



acteristic of their establishments, would permit our Amount outstanding . 315.230,925 00 



manufacturers to compete with their foreign rivals Btate-bank notes outstanding 207,'27.'i (to 



under a substantial reduction of existing duties. Dividends unpaid . . 6.805,057 82 



Individual deposits 1,066.901.719 85 



The report of the commission was referred $ff'' 



to the Committee of Ways and Means of the cere 



