The Butler Weekly Times Newspaper, December 14, 1887, Page 2

REDUCETHETARIFE! President Cleveland's Emphatic aud Ulear Headed Advice to the Members of the Fiftieth Congress. All Other Subjects Except This Disre- garded in the Brief and Timely Message Made Public. The Entire Work Demanding Calm, Unselfish and Patriotic Atten- tion to the People’s Welfare. The Cabinet Reports Commended and | a Further Message, Upon Affairs of State, Probable. To the Congress of the United States: You are confronted at the thres- | hold of your legislative duties with a condition of the national finances wh:ch imperatively demands imme- diate and careful consideration. The amount of money annually ex acted through the operation of present liws, from the industries and necessi- ties of the people, largely exceeds the sum necessary to meet the ex penses of the government. When we consider that the theory | to} of our institutions guarantees every citizen the full enjoyment of all the fruits of his industry and enterprise, with only such deduction as may be his share towards the careful and economical maintenance of the government which protects him, it is plain that the exaction of more than this is indefensible extor tion and a culpable betrayal of Amer ican fairness and justice. This wrong inflicted upon those who bear the burden of national tax- ation, like other wrongs, multiplies a brood of evil consequences. The public treasury, which should only exist as a conduit conveying the peo- ple’s tribute to its legitimate objects of expenditure, becomes a hoarding place for money needlessly with drawn from trade and the people's use, thus crippling our national en- ergies, suspending our country’s de- velopment, preventing investment in productive enterprises, threaten ing financial disturbance, and inviting schemes of public plunder. This condition of our treasury is not altogether new; and it has more than once of late been submitted to the people's representatives in the congress, who alone can apply a reme- dy. And yet the situation still contin- ues, with agravated incidents, more than ever presaging financial con vulsion and widespread disast r. «It will not do to neglect this sit uation because its dangers are not now palpably imminent and appar ent. They exist none the less cer tainly, and await the unforeseen and unexpected occasion when suddenly they will be precipitated upon us. On the 30th, day of June; 1885, the excess of revenues over -public expenditures, after complying with the annual requirements of the sink ing fund act, was $17,859,735,84; during the year ending June 30, 1886 such excess amounted to $49,405, 645,20; and during the year ending June 30, 1887, it reached the sum of $55,567,849,54. The annual contributions to the sinking fund during the three years above specified, amounting in the aggregate to $138,058,320,94, and deducted from the surplus as stated were made by calling in for that purpose outstanding three per cent bonds of the government. During the six months prior to June 30, 1887, the surplus had grwn so large by repeated accumulations, and it was feared the withdrawal of this great sum of money needed by the people would so effect the bus- iness of the country, that the sum of $79,864,100 of such surplus was applied to the payment of the princi- pal and interest of the three per cent bonds still outsanding, and which were then payable at the option of the government The precarious condition of finan- cial affairs among the people still need- ing relief, immediately after the 30th day of June, 1887, the remainder of the three per cent bonds then out- standing, amounting with principal and interest to the sum of $14,877, 500, were called in and applied to the sinking fund coutribution fr the current fiscal year. Notwithstanding these of cvations of the treasury departiwent the resentations of distress mm business circles not ouly continued but im creased, and absolute peri seed at hand. In these circumstances the contribution — t» sinking-fu the for the current fiscal year was at ouce 7. | cust of such bonds to the govern- ‘completed by the expenditure of $27 684,253,55 in the purchase of govern: | | ment bonds not due bearing 44 per | cent interest, the premium paid there- jon averaging about twenty four pei | cent. for the former and eight per |eent, for the later. In addition to | this the interest accruing during the ‘current year upon the outstanding | bonded indebtedness of the gover: ment was to sowe extent anticipated, and bauks selected as depositories of j public money were permitted to their | somewhat increase deposits. While the expedients thus ployed to release to the people | the money lying idle in the treasury, ‘served to avert immediate danger, cur surplus revenues have continued | to accumulate, the excess for the present year amounting on the first day of December to $55,255,701.19, and is estimated to reach the sum of $113,500,000 on the 30th of June next, at which date it is expected | that this sum, added to prior accu- ! malations, will swell the surplus in the treasury to $140,000;000. There seems to be no assurance, that, withdrawal from the use of the people’s circu.cting medium, business community may not in the near future be subjected to the same distress which was quite lately pro- duced irom the same cause. And while the functions of national treas- ury should be few and simple, and while its best condition would be reached, I beleive, by its entire dis connection with private interests, yet when, by a perversion of its purpos- es, it idly holds money uselessly sub- tracted from the channels of trade, there seems to be reasons for the claim that some legitimate means should be devised by the govern- ment to restore in an emergency, without waste or extravagance, such money to its place amoung the peo- ple. If such an emergency arises, there now exists no clear and undoubted executive power of relief. Heretofore the redemption of 3 per cent bonds which were payable at the option of the government, has afforded a means for the disperce- ment of the excess of our revenues; but these bonds have all been retired, and there are no bonds outstanding, the payment of which we have. the right to insist upon. The contribu- tion to the sinking fund, which fur- em- | | | | our nishes the occasion for expenditure in the purchas> of bonds, has been already made for the current year so there is no outlet in that direction. In the present state of legislation, | the only pretense of any exsist ecutive power to restore at this time, any part of our surplus revenues to the people by its expenditure, con- sists in the supposition that the treasurer may enter the market and purchase the bonds of the govern- ment not yet due at a rate of prem ium to be agreed upon The only provision of law from which such a power could be derived is found in the sppropriation bill passed a number of years ago, and it is subject to the suspicion that it was intended as temporary and limited in its application, instead of conferring a continuing discretion and authorit N> No condition ought to exist which would justify the grant of power to a single oficial, upon his judgement | of its necessity to hold from or re lease to the business of the people, in an unusual manner, money held in the treasury, and thus effect, at his will, the financial situation the country; and if it is deemed wise to lodge in the secretary of the tre asury the authority in the present juncture to purchase bonds, it should be plainly vested, and provided as far as possible, with such checks and limi. tations as will define this official's | right and discretion, and st the same of soll ieaeiiaameneteataememamian neuen ceeameemenandaemneaaatemaael ing ex- time releive him from undue res- ponsibility. In considering the question of pur- chasing bonds as a means of restor- to circulation the surplus money accumulating the treasury, it should be born in mind that premi- ums must be paid on a large part of these boud- held as investments wiuch cannot be purchased at any j ice, and that the combinations :mwong holders who are willing to ‘sell, imay unreasonably enhance the ing in ment. It has been suggested that the | present bonded debt might be refus- ed at a less rate of interest, and the | difference between the old and new | security paid in cash, thus finding use | for the surplus in the treasury. The success of this plan, it is apparent, | must depend upon the volition of the | holders of the present bonds; and it |is not entirely certain that the in | ducement which be offered the: would result in more financial benefit tothe government than the purchase of bonds, while the latter must proposition would reduce the princi- pal of the debt by actual payment, instead of extending it. The proposition to deposit the money held by the banks throughout the country, for use by the people, iS, it seems to me, exceedingly ob jectionable in principle, as establish- ing too close a relationship between the operations of the government treasury and the business of the coun try and too extensive acommingling of their money, thus fostering an un- natural reliance in private business upon public funds. If this scheme should be adopted it should only be doue as a temporary expedient to meet an urgent necessity. Legisla- t.ve and excutive effort should gen erally be in the opposit direction and should have a tendency to divorce, as much and as faust as can safely be done, the treasury department from private enterprise. Of course it is not expected t unnecessary and extravagant oe priations will be made for the pur- pose of avoiding the accumulation of an excess of revenue. Such ex- penditure, besides the demoralization of all just conceptions of public duty which it entails, stimulates a habit of reckless improvidence not in the least consistent with the mission of our people or the high and beneficent ideas of our government. I have deemed it my duty to thus bring to the knowledge of my countrymen as well as to the atten- tion of their representatives charged with the responsibility of legislative relief, the gravity of our financial situation. The failure of congress heretofore to provide against the dangers which it was quite evident the very nature of the difficulty must necessarily produce, caused a condition of financial distress and apprehension since your lastadjourn- ment which taxed to the utmost all the authority and expedients within executive control; and these appear now to be exhausted. if disaster results from the con- tinued inaction of congress, the re- sponsibility must rest where it be- longs. Though the situation thus far con- sidered is fraught with danger which | should be fully realized, and though it presents a feature of wrong to the | people as well as peril to the country. | It is but a result growing out of a perfect and apparent cause, constant- |ly reproducing the same alarming circumstances—a congested national | treasury and depleted monetary { condition in the business of the country. It need hardly be stated | that while the present situation de- mands a remedy, we can only be saved from a like predicament in the future by the removal of its cause. Our scheme of taxation, by means } of which this needless surplus is ta ; ken from the people and put into the j public treasury, consists of a tariff |or duty levied upon importations | i - j from abroad, and internal revenue j taxes levied upon the consumption tobacco spirituous and mult It must be conceded that none of the things subjected to in ternal revenue taxation are, strictly speaking necessaries. There appears to be no just compiaint of the tax- ation by the consumers of these articles, and there seems to be noth» liquors. ing so well able to bear the burden without hardship to any portion of the people. But our present tariff laws, the vicious, inequitable and illogical source of unnecessary taxation, ought to be at once revised and amended. | These laws as their primary and | plain effort raise the price to consu- }mers of all articles imported and | subject to duty by precisely the sum paid for such duties. Thus the amount of the duty measures the | use these imported articles. Many of these things, however, are raised or manufactured in our own country, and the duties now levied upon foreign goods and pro- ducts are called protection to these home manufactures, because they render it possible for those of our people whoare manufacturer to make these taxed articles and sell them for a price equal to that demanded for the imported goods that have paid customs duty. So it happens that while comparatively a few use the imported articles, millions of our people, who never use and never saw any of the foreign products. purchase and use things of the same kind made in this country and pay therefor nearly or quite the same enhanced price which the duty adds to the imported articles. Those who buy imports pay the duty charged thereon into the public treasury, but the great majority of our citizens, who buy domestic ar ticles of the same class, pay a sum at least approximately equal to this duty to the home manufacturer. This reference to the operation of our tariff laws is not made by way of instruction, but in order that we may be constantly reminded of the manuer in which they impose a_bur- den upon those who consume domes tic products as well as those who consume imported articles, and thus create a tax upon all our people. It is not proposed to entirely relieve the country of this tax- ation. It must be extensively con- tinued as the source of the govern- ments income, and in a readjust- ment of our tariff the interests of American labor engaged in manufac- ture should be carefully considered, as well as the preservation of our manufacturers. It may be called protection, or by any other name. but relief from the hardships and dangers of ou: present tariff laws should be devised with especial pre caution against imperiling the ex istence of our manufacturing interests But this existence should not mean 8 condition which, without regard to the public welfare of a nationai exi gency, must always insure the reali zation of immense profits instead of moderately profitable returns. As the volume-and diversity of | tion of their compensation. our national activities increase, new recruits are added to those who desire @ continuance of the advan- tages which they conceive the pres ent system of tariff taxation directly effects. So stubornly have all efforts to reduce the present condition been resisted by tnose of our fellow-citi- ons thus engaged, that they can hardiy complain of the suspicion, entertained to a certain extent, tha’ there existed an organized combi nation all along the line to maintain their advantage. We are in the midst of centennial celebrations, and with becoming pride we rejoice in American skill and engenuity, in American energy and enterprise, and in the wonderful natural advantages and resources ideveloped by # century's national growth. Yet when an attempt is made to justify a scheme which per- mits a tax to be laid upon every con- sumer in the land for the benefit of our manufacturers quite beyond a ; reasonable demand for government j regard, it suits the {advocacy to call our manuf: j purposes of still needi infant indust | highest degre of favor and f¢ the price of « resulting frou necessary in order may be paid to our working ployed in manufactures, than are paid for what is called the pauper tax paid by those who purchased for | labor in Europe. All will acknowl- edge the force of an argument which involves the welfare and liberal com pensation of our workingmen. La bor is honorable in the eyes of every American citizen; and as it lies at the foundation of our development and progress, it is entitled, without affec- tation or hypocrisy, to the utmost regard. The standard ot our labor ers’ life should not be measured by that of any other country less favor ed, and they are entitled to their full | Share of our advantages. By the last census it is made to appear that of the 17,392,099 of our | population engaged in all kinds of ‘industries, 7,670,493 are employed jin agriculture, 3,094, 238 in profess- ) ional service, (2,934,876 of whom are | ants and laborers.) 56 are employed in trade ' domestic se \ | while 1,510, | aud transportation, and 3,837,112 are | classed and employed in manufactur | ing and mining. | For present purposes, however, the | last number given should be consid- | lerably reduced. Without attempting ; to enumerate all, it will be conceded that there should be dedueted from those which it includes, 375,143 car penters and joiners, 285,401 milliners, dressmakers and seamstresses, 172,- | 726 blacksmiths, 133,756 tailors and tailoresses, 102,473 masons, | butchers, 41,309 bakers, 23,083 plas terers, 4,891 engaged in manufactur- ing agricultural implements, amount- leaving 2,623,089 persons imployed in such manufacturing industries are claimed to be benefited by a high tariff. To these the appeal is made to save their employment and main tain their wages by resisting achange. There should be no disposition to answer such suggestions by the al legation that they are ina minority among those who labor, and therefore should forego an advantage, in the in- terest of low prices for the majority, Their compensation, as it may be af- fected by the operation of tariff laws, should at all times be scrupulously kept in veiw; and yet with slight re- flection they will not overlook the fact that they are consumers with the rest; that they, too, have their own wants and those of their families to supply from their earnings, and that the prices of the necessaries of life, as well as the amount of their wages, will regulate the measure of their welfare and comfort. But the reduction of taxation de- manded should be measured as not to necessitate or justify either the loss of employment by the workingmen or the lessening of their wages; and the profits still remaining to the manufacturer, after a necessary readjustment, should furnish no ex- cuse for the sacrifice of the interest of his employes either in their op- portunity to work or in the diminu Nor can the worker in manufactures fail to understand that while a high tariff is claimed to be necessary to allow the payment of renumerative wages, it as certainly results in @ very large in crease in the price of nearly all sorts of manufactures, which, in almost countless forms, he needs for the use of himself and his family. He re- ceives at the desk of his employer his wages, and perhaps before he reaches home is obliged, im a pur chase forfamily use of an article which embraces his own Jabor, to return in the payment of the increase in price which the tariff permits, the hard earned compensation of many days of toil. The farmer or the agriculturist, who manufactures nothing, but who | pays the increased price which the | tariff imposes, upon every agricult- and upon all he uses and owns, ex- |cept the increase of his flocks and ‘heards and such things as in his husbandry he produces rc the 1 to aid in manufac 76,241 | ing in the aggregate to 1,214,023, ! ural implement, upon ali he wears | i | ! | any mention made of the fact thas the sheep owners themselves ‘ang their households must wear clothj and use other articles manufactureg from the wool they sell at tariff prices, and thus as consumers must return their share of this increased price to the tiudesma., I think it may be fauly assumed that a large proportion of the sheep owned by the farmers throughout the coun are found in small flocks numberj from twenty-tive to fifth. The duty on the grade of imported wool which those sheep yield is ten cents for each pound, if of the value of thirty cents, and twelve cents if of the value of more than thirty cents. If the liberal estimate of six pounds be allowed for each fleece, the duty thereon would be sixty or seventy. twocents, and this may be taken ag the utmost enhancement of the price t» the farmer by reason o1 this duty, Eighteen dollars would thus repre- sent the increased price of the wool from twenty-five and thirty-six dol lars that from the wool of fifty sheep and at present values this addition would amount to about one third oi its price. If upon its sale the farmer receives this or a less tariff profit, the wool leaves his hands charged with precisely that sum, which in all its changes will adhere to it, until it reaches the cousumer, When manufactured into cloth and other goods and material for use its cost 18 not only increased to the ex- tent of the farmers’ tariff profit but a further sum has been added for the benetit of the manufacturer un- ‘der the opperation of other tariff laws. In the meantime the day ar- rives when the farmer finds it neces- sary to purchase woolen goods and material to clothe himself und fami- ly for the winter. When he faces the tradesman for that purpese he discovers that he is obliged not on- ly to return in the way of increased prices his tariff profit on the wool he sold, and which then perhaps lies before him in manufactured form, but that he must add a considerable sum thereto to meet a further in- crease in cost caused by a tariff duty on the manufacture. Thus in the end ke is aroused to the fact that he has paid upon a moderate purchase as a result of the tariff scheme, which when he sold his wool seemed so profitable an increase in price, more than sufficient to sweep away all the tariff profit he received upon the wool he produced and sold. When the number of farmers en- gaged in wool raising is compared with all the farmers in the country, and the small proportion they bear to our population is considered; when it is made apparent that, in case of a large part of those who own sheep, the benefit of the pres- ent tariff on wool is illusory; and, above all, when it must be conceded that the increase of the cost of liv- ing caused by such tariff becomes a a burden upon those with a smoder- ite means and the poor, the employ- ed and unemployed, the, sick and well, and the young and old, and that it constitutes a tax, which, with , it fastened upon the lothing of every man, woman and oSS QTaRD, nid in the land, reasons are sugges- ted why the removal or reduction of this duty should be included in a re. visiou of our tariff laws In sy ig of the increased cost to the consumer of our home manu- facture, resulting from 4 duty Isid upon imported articles of the same | description, the fact is not overlooked that « petition among our domes- tie producers bas « the effect of keeping the price of their ts below the highest limit But it is notorious that this competition is led by combinations quite prevalent at this time, and tly called trusts, which have sometimes proc allowed by such duty. too often strar frec freq regulation of the f commodities the } . members of schemes. od on next page.) of such free rice of any o! bome t otherwise reac i, with such reduced - ee