SS. (THE TARIFF 



ing; that is, of the two hand red and ninety-three 

 an-1 a half million* realized from the sale of two 

 hundred and .sixty-two and one third million 



MI the last analysis over two hundred millions 

 has been used to pay current expenditure* in excess 

 of rev. 



nlc deficiency of rerenue and the 

 use of the borrowed reserve, or (what i* tin- same 

 ihmtfiof t!:,- r nit rd States demand notes, rede 

 with gold obtained by burrowing, has promoted dis- 



intenaifled and prolonged t ).. run on the Treas- 

 nd weakened bttaineat confidence. 



ieocY of rerenue has nearly all a 

 fnm the falling off of rercnue from duties on in- 

 land not from a decline of revrinie from in' 

 taxes) ftince the results of the national !. i..n in 



nber. 1889. first forecasting and subsequently 

 partially accomplishing a revolutionary -hange of 

 tariiT s^gan to arrest industries. In the 



fiscal rear osgitinini: July 1, ISltt. the revenue <!- 



from the duties on 'imports was two hundred 

 and three millions, an increase of twenty-six mil- 



Norember, 



1809. it was the confident expectation of the then 

 Secretary of th- I that the revenue iii the 



. yearwotild n-ach two hundred ami 

 twenty millions; I. -it this expectation was blasted 

 when anticipated tariff legislation that would largely 

 reduce duties legan to defer importations and MI!>- 



:tly to disorganize indus; 



* The revenue derived from duties on imports and 

 also from internal-revenue taxes for each fiscal year, 

 beginning with 1802, was as follows: 



real 



IOT.4KJM 



181318,680 



- 



140,000,000 



- 



Ifil." 

 147,1 



1 n. , 



150,000,000 



In the light of this course of events, and in the 

 face of the chronic deficiency requiring immediate 

 n-lief. the Committee on Ways and Means have re- 

 ported the landing I. ill to iwi<c the tariff for the 

 ends indicated ly the title, to wit, to provide addi- 

 tional revenue t.I . arry ..n the (iovcrnmcnt, and at 

 the same t im-. in adjusting the duties to secure this 

 revenue, to encourage the industries of the United 

 States. 



In this revision the committee have endeavored 

 to discard mere theories, and have addressed them- 

 selves to the framing of a practical remedy, at least 

 in part, for the ills which have for so many months 

 overshadowed the country. 



is a condition and not a theory which con- 

 ns. <>ur problem is to pro-, id.- adequate reve- 

 nue from duties on imjK.rts to carry on the Govern- 

 ment, and in imposing duties to secure this result 

 to to adjust them as to secure to our own people the 

 production and manufacture of such articles as we 

 can produce or make for ourselves without natural 

 disadvantage, and thus provide more abundant op- 

 portunities for our labor. For rest assured th 

 eoon will prove a success unless it shall 



in some manner contribute to opening up employ- 

 IM masses of our people at good wages. 

 . this shall be accomplished, an. 1 thus the pur- 

 chasing power of the masses is restored, then, and 

 not until then, will prices cease to feel the depress- 

 Tect of underconsumption, and the prosperity 

 of our people rise to the standard of 



The great secret of the pr<.|*Tity of the United 

 States up to 1898, especially after the resumption of 

 specie payments in 1879. was the fact that ouriwople 

 were ail at work at good wages, and thus had Urge 



asing power. It was this large c.-n^uminu' .-md 



pure!, .-rthat made our markets the best 



in the world, thai maintained prices at fair rates 



in short, that made this country the admiration and 



; Id. 



> lien, by first the anticipated and then par- 

 tially ramUlM overthrow of protection, industries 

 were arrested, nmch ;.,-d. wages reduced, 



and employees discharged, t hron-h the transfer of 

 the producing and making of part of what we had 

 i-;\ made to other lands, then the purchas- 

 ing power of thi' masses was diminished and the 

 demand for products decreased, and this -..r-ed the 

 markets, abnormally lowered pn -. and prostrated 

 industries and business. 



Mr. < 'liairman. the pa-t f, ; ,\e I.een 



soUghtaniiig, especially to candid investigators of 



inic probl, :. . \\ . 

 kindergarten on a gigant ic scale. Tin- t niti.n has 



Come lliljh, lillt Ho people ever leal'lled s, , much ill 



80 brief a time. Hereafter theori.-. preached in 

 however captivatini: lan-ua^e. will have to give 

 way to the tca< ' 



The plea airainsi the neee ity f..r legislation on 



:onnd that the existing tariff would pi 

 siillieieiit income was put by Mr. Wheeler. ,,f Ala- 

 bama, as follow 



- Mr. Chairman, from the day of the election ..f 

 President McKinlcy ni> to March 1. the Repub- 

 lican press announced that Oongrtfj woula ie 



convened immediately upon the inauu'uration of 

 the newly elected Republican President, the reason 

 beini: aafigned tha! the deficiency of revenue male 

 it imperatively necessary. 



"(Mi March (J. the proclamation for the extraor- 

 dinary sessj,,n was isMlcd. The ines-a^e of the 



President, which wMreoeiredtbeday we convi-m !. 



was devoted rxclusively t<> an argument which en- 



. that the condition of the fii. 

 were such that prompt measures to increase the 

 revenue were imperative. The message told us 

 that the expenditures of the <o. \rrnment had ei- 

 1 the receipts during the last three years as 

 follows : 



Year ending .Tune 30. l W4 $fl9 808.280 68 



Tear eixlint; .Tune .-,<. iflM. . . . 



Year ending June 80, 1806.. . i:.70 



"This proves that had the income tax. which 

 would have yielded $40,000,0<M) annually, not L.-m 

 nullified by the Supreme Court of the I'nited > 

 the receipts would have far exceeded the expendi- 

 tures, which fully vindicates the Wilson bill as a 

 revenue measure. It also shows that, notwithstand- 

 ing the loss of the income tax. the deficit ha. I 

 constantlv decreasing last Year the deficiency be- 

 ing only $25,203,240 



lie message of the President fails t<. mention 

 the important fact that on the day of his inaugura- 

 tion there was $21 M 'in the Treasur) 

 available for the payment of <;. , vernment expendi- 

 tures. This p roves "that there was no |o<s-j|,j|jty of 

 this fund bein^ exhausted or even serious). 

 duced until we could in the most orderly way pass 

 revenue measures at the regular session if. indeed. 

 at that time it became apparent that there was a 

 necessity for additional revenue. In that event tin- 

 large Republican majority in this House could 

 enact some law which would LT the n.-.-, 

 rev. -nil'' without disturbing the general tariff laws 

 of our country. Or if the necessity had been ap- 

 parent, a* contended as early as last Novenr 

 bill of that character could have been easily passed 

 during the last session of Congress. The fact that 

 nothing of this character was attempt. -d during the 

 ress just closed (the last se ion of the Fifty- 

 fourth Congress) shows very conclusively that other 

 results were sought than to" raise revenue. 



