You are confronted at the threshold of your legislative duties with a condition of the national finances which imperatively demands immediate and careful consideration. The amount of money annually exacted, through the operation of present laws, from the industries and necessities of the people largely exceeds the sum necessary to meet the expenses of the Government. When we consider that the theory of our institutions guarantees to every citizen the full enjoyment of all the fruits of his industry and enterprise, with only such deduction as may be his share toward the careful and economical maintenance of the Government which protects him, it is plain that the exaction of more than this is indefensible extortion and a culpable betrayal of American fairness and justice. This wrong inflicted upon those who bear the burden of national taxation, like other wrongs, multiplies a brood of evil consequences. The public Treasury, which should only exist as a conduit conveying the people's tribute to its legitimate objects of expenditure, becomes a hoarding place for money needlessly withdrawn from trade and the people's use, thus crippling our national energies, suspending our country's development, preventing investment in productive enterprise, threatening 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 remedy. And yet the situation still continues, with aggravated incidents, more than ever presaging financial convulsion and widespread disaster. It will not do to neglect this situation because its dangers are not now palpably imminent and apparent. They exist none the less certainly, 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 requirement of the sinking-fund act, was $17,859,735.84; during the year ended June 30, 1886, such excess amounted to $49,405,545.20, and during the year ended 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 3 per cent bonds of the Government. During the six months prior to June 30, 1887, the surplus revenue had grown so large by repeated accumulations, and it was feared the withdrawal of this great sum of money needed by the people would so affect the business of the country, that the sum of $79,864,100 of such surplus was applied to the payment of the principal and interest of the 3 per cent bonds still outstanding, and which were then payable at the option of the Government. The precarious condition of financial affairs among the people still needing relief, immediately after the 30th day of June, 1887, the remainder of the 3 per cent bonds then outstanding, amounting with principal and interest to the sum of $18,877,500, were called in and applied to the sinking-fund contribution for the current fiscal year. Notwithstanding these operations of the Treasury Department, representations of distress in business circles not only continued, but increased, and absolute peril seemed at hand. In these circumstances the contribution to the sinking fund for the current fiscal year was at once completed by the expenditure of $27,684,283.55 in the purchase of Government bonds not yet due bearing 4 and 41/2 per cent interest, the premium paid thereon averaging about 24 per cent for the former and 8 per cent for the latter. In addition to this, the interest accruing during the current year upon the outstanding bonded indebtedness of the Government was to some extent anticipated, and banks selected as depositories of public money were permitted to somewhat increase their deposits. While the expedients thus employed to release to the people the money lying idle in the Treasury served to avert immediate danger, our surplus revenues have continued to accumulate, the excess for the present year amounting on the 1st day of December to $55,258,701.19, and estimated to reach the sum of $113,000,000 on the 30th of June next, at which date it is expected that this sum, added to prior accumulations, will swell the surplus in the Treasury to $140,000,000. There seems to be no assurance that, with such a withdrawal from use of the people's circulating medium, our business community may not in the near future be subjected to the same distress which was quite lately produced from the same cause. And while the functions of our National Treasury should be few and simple, and while its best condition would be reached, I believe, by its entire disconnection with private business interests, yet when, by a perversion of its purposes, it idly holds money uselessly subtracted from the channels of trade, there seems to be reason for the claim that some legitimate means should be devised by the Government to restore in an emergency, without waste or extravagance, such money to its place among the people. 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 disbursement 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 a right to insist upon. The contribution to the sinking fund which furnishes the occasion for expenditure in the purchase of bonds has been already made for the current year, so that there is no outlet in that direction. In the present state of legislation the only pretense of any existing executive power to restore at this time any part of our surplus revenues to the people by its expenditure consists in the supposition that the Secretary of the Treasury may enter the market and purchase the bonds of the Government not yet due, at a rate of premium to be agreed upon. The only provision of law from which such a power could be derived is found in an appropriation 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 authority. No condition ought to exist which would justify the grant of power to a single official, upon his judgment of its necessity, to withhold from or release to the business of the people, in an unusual manner, money held in the Treasury, and thus affect at his will the financial situation of the country; and if it is deemed wise to lodge in the Secretary of the Treasury the authority in the present juncture to purchase bonds, it should be plainly vested, and provided, as far as possible, with such checks and limitations as will define this official's right and discretion and at the same time relieve him from undue responsibility. In considering the question of purchasing bonds as a means of restoring to circulation the surplus money accumulating in the Treasury, it should be borne in mind that premiums must of course be paid upon such purchase, that there may be a large part of these bonds held as investments which can not be purchased at any price, and that combinations among holders who are willing to sell may unreasonably enhance the cost of such bonds to the Government. It has been suggested that the present bonded debt might be refunded 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 inducement which must be offered them would result in more financial benefit to the Government than the purchase of bonds, while the latter proposition would reduce the principal of the debt by actual payment instead of extending it. The proposition to deposit the money held by the Government in banks throughout the country for use by the people is, it seems to me, exceedingly objectionable in principle, as establishing too close a relationship between the operations of the Government Treasury and the business of the country and too extensive a commingling of their money, thus fostering an unnatural reliance in private business upon public funds. If this scheme should be adopted, it should only be done as a temporary expedient to meet an urgent necessity. Legislative and executive effort should generally be in the opposite direction, and should have a tendency to divorce, as much and as fast as can be safely done, the Treasury Department from private enterprise. Of course it is not expected that unnecessary and extravagant appropriations will be made for the purpose of avoiding the accumulation of an excess of revenue. Such expenditure, 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 purposes of our Government. I have deemed it my duty to thus bring to the knowledge of my countrymen, as well as to the attention of their representatives charged with the responsibility of legislative relief, the gravity of our financial situation. The failure of the 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 last adjournment 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 continued inaction of Congress, the responsibility must rest where it belongs. Though the situation thus far considered is fraught with danger which should be fully realized, and though it presents features of wrong to the people as well as peril to the country, it is but a result growing out of a perfectly palpable and apparent cause, constantly reproducing the same alarming circumstances--a congested National Treasury and a depleted monetary condition in the business of the country. It need hardly be stated that while the present situation demands 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 taken from the people and put into the public Treasury, consists of a tariff or duty levied upon importations from abroad and internal-revenue taxes levied upon the consumption of tobacco and spirituous and malt liquors. It must be conceded that none of the things subjected to internal-revenue taxation are, strictly speaking, necessaries. There appears to be no just complaint of this taxation by the consumers of these articles, and there seems to be nothing 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 effect, raise the price to consumers of all articles imported and subject to duty by precisely the sum paid for such duties. Thus the amount of the duty measures the tax paid by those who purchase for 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 products are called protection to these home manufactures, because they render it possible for those of our people who are manufacturers 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 used 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 articles 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 manner in which they impose a burden upon those who consume domestic 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 taxation. It must be extensively continued as the source of the Government's income; and in a readjustment of our tariff the interests of American labor engaged in manufacture 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 our present tariff laws should be devised with especial precaution against imperiling the existence of our manufacturing interests. But this existence should not mean a condition which, without regard to the public welfare or a national exigency, must always insure the realization of immense profits instead of moderately profitable returns. As the volume and diversity of our national activities increase, new recruits are added to those who desire a continuation of the advantages which they conceive the present system of tariff taxation directly affords them. So stubbornly have all efforts to reform the present condition been resisted by those of our fellow-citizens thus engaged that they can hardly complain of the suspicion, entertained to a certain extent, that there exists an organized combination 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 ingenuity, in American energy and enterprise, and in the wonderful natural advantages and resources developed by a century's national growth. Yet when an attempt is made to justify a scheme which permits a tax to be laid upon every consumer in the land for the benefit of our manufacturers, quite beyond a reasonable demand for governmental regard, it suits the purposes of advocacy to call our manufactures infant industries still needing the highest and greatest degree of favor and fostering care that can be wrung from Federal legislation. It is also said that the increase in the price of domestic manufactures resulting from the present tariff is necessary in order that higher wages may be paid to our workingmen employed in manufactories than are paid for what is called the pauper labor of Europe. All will acknowledge the force of an argument which involves the welfare and liberal compensation of our laboring people. Our labor 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 affectation or hypocrisy, to the utmost regard. The standard of our laborers' life should not be measured by that of any other country less favored, and they are entitled to their full share of all 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 in agriculture, 4,074,238 in professional and personal service (2,934,876 of whom are domestic servants and laborers), while 1,810,256 are employed in trade and transportation and 3,837,112 are classed as employed in manufacturing and mining. For present purposes, however, the last number given should be considerably reduced. Without attempting to enumerate all, it will be conceded that there should be deducted from those which it includes 375,143 carpenters and joiners, 285,401 milliners, dressmakers, and seamstresses, 172,726 blacksmiths, 133,756 tailors and tailoresses, 102,473 masons, 76,241 butchers, 41,309 bakers, 22,083 plasterers, and 4,891 engaged in manufacturing agricultural implements, amounting in the aggregate to 1,214,023, leaving 2,623,089 persons employed in such manufacturing industries as are claimed to be benefited by a high tariff. To these the appeal is made to save their employment and maintain their wages by resisting a change. There should be no disposition to answer such suggestions by the allegation that they are in a minority among those who labor, and therefore should forego an advantage in the interest of low prices for the majority. Their compensation, as it may be affected by the operation of tariff laws, should at all times be scrupulously kept in view; and yet with slight reflection 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 price 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 demanded should be so measured as not to necessitate or justify either the loss of employment by the workingman or the lessening of his wages; and the profits still remaining to the manufacturer after a necessary readjustment should furnish no excuse for the sacrifice of the interests of his employees, either in their opportunity to work or in the diminution of their compensation. Nor can the worker in manufactures fail to understand that while a high tariff is claimed to be necessary to allow the payment of remunerative wages, it certainly results in a very large increase 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 receives at the desk of his employer his wages, and perhaps before he reaches his home is obliged, in a purchase for family use of an article which embraces his own labor, 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 and the agriculturist, who manufacture nothing, but who pay the increased price which the tariff imposes upon every agricultural implement, upon all he wears, and upon all he uses and owns, except the increase of his flocks and herds and such things as his husbandry produces from the soil, is invited to aid in maintaining the present situation; and he is told that a high duty on imported wool is necessary for the benefit of those who have sheep to shear, in order that the price of their wool may be increased. They, of course, are not reminded that the farmer who has no sheep is by this scheme obliged, in his purchases of clothing and woolen goods, to pay a tribute to his fellow-farmer as well as to the manufacturer and merchant, nor is any mention made of the fact that the sheep owners themselves and their households must wear clothing and use other articles manufactured from the wool they sell at tariff prices, and thus as consumers must return their share of this increased price to the tradesman. I think it may be fairly assumed that a large proportion of the sheep owned by the farmers throughout the country are found in small flocks, numbering from twenty-five to fifty. The duty on the grade of imported wool which these sheep yield is 10 cents each pound if of the value of 30 cents or less and 12 cents if of the value of more than 30 cents. If the liberal estimate of 6 pounds be allowed for each fleece, the duty thereon would be 60 or 72 cents; and this may be taken as the utmost enhancement of its price to the farmer by reason of this duty. Eighteen dollars would thus represent the increased price of the wool from twenty-five sheep and $36 that from the wool of fifty sheep; and at present values this addition would amount to about one-third of 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 consumer. When manufactured into cloth and other goods and material for use, its cost is not only increased to the extent of the farmer's tariff profit, but a further sum has been added for the benefit of the manufacturer under the operation of other tariff laws. In the meantime the day arrives when the farmer finds it necessary to purchase woolen goods and material to clothe himself and family for the winter. When he faces the tradesman for that purpose, he discovers that he is obliged not only 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 increase in cost caused by a tariff duty on the manufacture. Thus in the end he 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 engaged 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 the case of a large part of those who own sheep the benefit of the present tariff on wool is illusory; and, above all, when it must be conceded that the increase of the cost of living caused by such tariff becomes a burden upon those with moderate means and the poor, the employed and unemployed, the sick and well, and the young and old, and that it constitutes a tax which with relentless grasp is fastened upon the clothing of every man, woman, and child in the land, reasons are suggested why the removal or reduction of this duty should be included in a revision of our tariff laws. In speaking of the increased cost to the consumer of our home manufactures resulting from a duty laid upon imported articles of the same description, the fact is not ever looked that competition among our domestic producers sometimes has the effect of keeping the price of their products below the highest limit allowed by such duty. But it is notorious that this competition is too often strangled by combinations quite prevalent at this time, and frequently called trusts, which have for their object the regulation of the supply and price of commodities made and sold by members of the combination. The people can hardly hope for any consideration in the operation of these selfish schemes. If, however, in the absence of such combination, a healthy and free competition reduces the price of any particular dutiable article of home production below the limit which it might otherwise reach under our tariff laws, and if with such reduced price its manufacture continues to thrive, it is entirely evident that one thing has been discovered which should be carefully scrutinized in an effort to reduce taxation. The necessity of combination to maintain the price of any commodity to the tariff point furnishes proof that someone is willing to accept lower prices for such commodity and that such prices are remunerative; and lower prices produced by competition prove the same thing. Thus where either of these conditions exists a case would seem to be presented for an easy reduction of taxation. The considerations which have been presented touching our tariff laws are intended only to enforce an earnest recommendation that the surplus revenues of the Government be prevented by the reduction of our customs duties, and at the same time to emphasize a suggestion that in accomplishing this purpose we may discharge a double duty to our people by granting to them a measure of relief from tariff taxation in quarters where it is most needed and from sources where it can be most fairly and justly accorded. Nor can the presentation made of such considerations be with any degree of fairness regarded as evidence of unfriendliness toward our manufacturing interests or of any lack of appreciation of their value and importance. These interests constitute a leading and most substantial element of our national greatness and furnish the proud proof of our country's progress. But if in the emergency that presses upon us our manufacturers are asked to surrender something for the public good and to avert disaster, their patriotism, as well as a grateful recognition of advantages already afforded, should lead them to willing cooperation. No demand is made that they shall forego all the benefits of governmental regard; but they can not fail to be admonished of their duty, as well as their enlightened self-interest and safety, when they are reminded of the fact that financial panic and collapse, to which the present condition tends, afford no greater shelter or protection to our manufactures than to other important enterprises. Opportunity for safe, careful, and deliberate reform is now offered; and none of us should be unmindful of a time when an abused and irritated people, heedless of those who have resisted timely and reasonable relief, may insist upon a radical and sweeping rectification of their wrongs. The difficulty attending a wise and fair revision of our tariff laws is not underestimated. It will require on the part of the Congress great labor and care, and especially a broad and national contemplation of the subject and a patriotic disregard of such local and selfish claims as are unreasonable and reckless of the welfare of the entire country. Under our present laws more than 4,000 articles are subject to duty. Many of these do not in any way compete with our own manufactures, and many are hardly worth attention as subjects of revenue. A considerable reduction can be made in the aggregate by adding them to the free list. The taxation of luxuries presents no features of hardship; but the necessaries of life used and consumed by all the people, the duty upon which adds to the cost of living in every home, should be greatly cheapened. The radical reduction of the duties imposed upon raw material used in manufactures, or its free importation, is of course an important factor in any effort to reduce the price of these necessaries. It would not only relieve them from the increased cost caused by the tariff on such material, but the manufactured product being thus cheapened that part of the tariff now laid upon such product, as a compensation to our manufacturers for the present price of raw material, could be accordingly modified. Such reduction or free importation would serve besides to largely reduce the revenue. It is not apparent how such a change can have any injurious effect upon our manufacturers. On the contrary, it would appear to give them a better chance in foreign markets with the manufacturers of other countries, who cheapen their wares by free material. Thus our people might have the opportunity of extending their sales beyond the limits of home consumption, saving them from the depression, interruption in business, and loss caused by a glutted domestic market and affording their employees more certain and steady labor, with its resulting quiet and contentment. The question thus imperatively presented for solution should be approached in a spirit higher than partisanship and considered in the light of that regard for patriotic duty which should characterize the action of those intrusted with the weal of a confiding people. But the obligation to declared party policy and principle is not wanting to urge prompt and effective action. Both of the great political parties now represented in the Government have by repeated and authoritative declarations condemned the condition of our laws which permit the collection from the people of unnecessary revenue, and have in the most solemn manner promised its correction; and neither as citizens nor partisans are our countrymen in a mood to condone the deliberate violation of these pledges. Our progress toward a wise conclusion will not be improved by dwelling upon the theories of protection and free trade. This savors too much of bandying epithets. It is a condition which confronts us, not a theory. Relief from this condition may involve a slight reduction of the advantages which we award our home productions, but the entire withdrawal of such advantages should not be contemplated. The question of free trade is absolutely irrelevant, and the persistent claim made in certain quarters that all the efforts to relieve the people from unjust and unnecessary taxation are schemes of so-called free traders is mischievous and far removed from any consideration for the public good. The simple and plain duty which we owe the people is to reduce taxation to the necessary expenses of an economical operation of the Government and to restore to the business of the country the money which we hold in the Treasury through the perversion of governmental powers. These things can and should be done with safety to all our industries, without danger to the opportunity for remunerative labor which our workingmen need, and with benefit to them and all our people by cheapening their means of subsistence and increasing the measure of their comforts. The Constitution provides that the President "shall from time to time give to the Congress information of the state of the Union." It has been the custom of the Executive, in compliance with this provision, to annually exhibit to the Congress, at the opening of its session, the general condition of the country, and to detail with some particularity the operations of the different Executive Departments. It would be especially agreeable to follow this course at the present time and to call attention to the valuable accomplishments of these Departments during the last fiscal year; but I am so much impressed with the paramount importance of the subject to which this communication has thus far been devoted that I shall forego the addition of any other topic, and only urge upon your immediate consideration the "state of the Union" as shown in the present condition of our Treasury and our general fiscal situation, upon which every element of our safety and prosperity depends. The reports of the heads of Departments, which will be submitted, contain full and explicit information touching the transaction of the business intrusted to them and such recommendations relating to legislation in the public interest as they deem advisable. I ask for these reports and recommendations the deliberate examination and action of the legislative branch of the Government. There are other subjects not embraced in the departmental reports demanding legislative consideration, and which I should be glad to submit. Some of them, however, have been earnestly presented in previous messages, and as to them I beg leave to repeat prior recommendations. As the law makes no provision for any report from the Department of State, a brief history of the transactions of that important Department, together with other matters which it may hereafter be deemed essential to commend to the attention of the Congress, may furnish the occasion for a future communication.
You are confronted at the threshold of your legislative duties with a condition of the national finances which imperatively demands immediate and careful consideration. The amount of money annually exacted, through the operation of present laws, from the industries and necessities of the people largely exceeds the sum necessary to meet the expenses of the Government. When we consider that the theory of our institutions guarantees to every citizen the full enjoyment of all the fruits of his industry and enterprise, with only such deduction as may be his share toward the careful and economical maintenance of the Government which protects him, it is plain that the exaction of more than this is indefensible extortion and a culpable betrayal of American fairness and justice. This wrong inflicted upon those who bear the burden of national taxation, like other wrongs, multiplies a brood of evil consequences. The public Treasury, which should only exist as a conduit conveying the people's tribute to its legitimate objects of expenditure, becomes a hoarding place for money needlessly withdrawn from trade and the people's use, thus crippling our national energies, suspending our country's development, preventing investment in productive enterprise, threatening 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 remedy. And yet the situation still continues, with aggravated incidents, more than ever presaging financial convulsion and widespread disaster. It will not do to neglect this situation because its dangers are not now palpably imminent and apparent. They exist none the less certainly, 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 requirement of the sinking-fund act, was $17,859,735.84; during the year ended June 30, 1886, such excess amounted to $49,405,545.20, and during the year ended 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 3 per cent bonds of the Government. During the six months prior to June 30, 1887, the surplus revenue had grown so large by repeated accumulations, and it was feared the withdrawal of this great sum of money needed by the people would so affect the business of the country, that the sum of $79,864,100 of such surplus was applied to the payment of the principal and interest of the 3 per cent bonds still outstanding, and which were then payable at the option of the Government. The precarious condition of financial affairs among the people still needing relief, immediately after the 30th day of June, 1887, the remainder of the 3 per cent bonds then outstanding, amounting with principal and interest to the sum of $18,877,500, were called in and applied to the sinking-fund contribution for the current fiscal year. Notwithstanding these operations of the Treasury Department, representations of distress in business circles not only continued, but increased, and absolute peril seemed at hand. In these circumstances the contribution to the sinking fund for the current fiscal year was at once completed by the expenditure of $27,684,283.55 in the purchase of Government bonds not yet due bearing 4 and 41/2 per cent interest, the premium paid thereon averaging about 24 per cent for the former and 8 per cent for the latter. In addition to this, the interest accruing during the current year upon the outstanding bonded indebtedness of the Government was to some extent anticipated, and banks selected as depositories of public money were permitted to somewhat increase their deposits. While the expedients thus employed to release to the people the money lying idle in the Treasury served to avert immediate danger, our surplus revenues have continued to accumulate, the excess for the present year amounting on the 1st day of December to $55,258,701.19, and estimated to reach the sum of $113,000,000 on the 30th of June next, at which date it is expected that this sum, added to prior accumulations, will swell the surplus in the Treasury to $140,000,000. There seems to be no assurance that, with such a withdrawal from use of the people's circulating medium, our business community may not in the near future be subjected to the same distress which was quite lately produced from the same because. And while the functions of our National Treasury should be few and simple, and while its best condition would be reached, I believe, by its entire disconnection with private business interests, yet when, by a perversion of its purposes, it idly holds money uselessly subtracted from the channels of trade, there seems to be reason for the claim that some legitimate means should be devised by the Government to restore in an emergency, without waste or extravagance, such money to its place among the people. 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 disbursement 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 a right to insist upon. The contribution to the sinking fund which furnishes the occasion for expenditure in the purchase of bonds has been already made for the current year, so that there is no outlet in that direction. In the present state of legislation the only pretense of any existing executive power to restore at this time any part of our surplus revenues to the people by its expenditure consists in the supposition that the Secretary of the Treasury may enter the market and purchase the bonds of the Government not yet due, at a rate of premium to be agreed upon. The only provision of law from which such a power could be derived is found in an appropriation 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 authority. No condition ought to exist which would justify the grant of power to a single official, upon his judgment of its necessity, to withhold from or release to the business of the people, in an unusual manner, money held in the Treasury, and thus affect at his will the financial situation of the country; and if it is deemed wise to lodge in the Secretary of the Treasury the authority in the present juncture to purchase bonds, it should be plainly vested, and provided, as far as possible, with such checks and limitations as will define this official's right and discretion and at the same time relieve him from undue responsibility. In considering the question of purchasing bonds as a means of restoring to circulation the surplus money accumulating in the Treasury, it should be borne in mind that premiums must of course be paid upon such purchase, that there may be a large part of these bonds held as investments which can not be purchased at any price, and that combinations among holders who are willing to sell may unreasonably enhance the cost of such bonds to the Government. It has been suggested that the present bonded debt might be refunded 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 inducement which must be offered them would result in more financial benefit to the Government than the purchase of bonds, while the latter proposition would reduce the principal of the debt by actual payment instead of extending it. The proposition to deposit the money held by the Government in banks throughout the country for use by the people is, it seems to me, exceedingly objectionable in principle, as establishing too close a relationship between the operations of the Government Treasury and the business of the country and too extensive a commingling of their money, thus fostering an unnatural reliance in private business upon public funds. If this scheme should be adopted, it should only be done as a temporary expedient to meet an urgent necessity. Legislative and executive effort should generally be in the opposite direction, and should have a tendency to divorce, as much and as fast as can be safely done, the Treasury Department from private enterprise. Of course it is not expected that unnecessary and extravagant appropriations will be made for the purpose of avoiding the accumulation of an excess of revenue. Such expenditure, 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 purposes of our Government. I have deemed it my duty to thus bring to the knowledge of my countrymen, as well as to the attention of their representatives charged with the responsibility of legislative relief, the gravity of our financial situation. The failure of the 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 last adjournment 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 continued inaction of Congress, the responsibility must rest where it belongs. Though the situation thus far considered is fraught with danger which should be fully realized, and though it presents features of wrong to the people as well as peril to the country, it is but a result growing out of a perfectly palpable and apparent because, constantly reproducing the same alarming circumstances--a congested National Treasury and a depleted monetary condition in the business of the country. It need hardly be stated that while the present situation demands a remedy, we can only be saved from a like predicament in the future by the removal of its because. Our scheme of taxation, by means of which this needless surplus is taken from the people and put into the public Treasury, consists of a tariff or duty levied upon importations from abroad and internal-revenue taxes levied upon the consumption of tobacco and spirituous and malt liquors. It must be conceded that none of the things subjected to internal-revenue taxation are, strictly speaking, necessaries. There appears to be no just complaint of this taxation by the consumers of these articles, and there seems to be nothing 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 effect, raise the price to consumers of all articles imported and subject to duty by precisely the sum paid for such duties. Thus the amount of the duty measures the tax paid by those who purchase for 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 products are called protection to these home manufactures, because they render it possible for those of our people who are manufacturers 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 used 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 articles 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 manner in which they impose a burden upon those who consume domestic 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 taxation. It must be extensively continued as the source of the Government's income; and in a readjustment of our tariff the interests of American labor engaged in manufacture 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 our present tariff laws should be devised with especial precaution against imperiling the existence of our manufacturing interests. But this existence should not mean a condition which, without regard to the public welfare or a national exigency, must always insure the realization of immense profits instead of moderately profitable returns. As the volume and diversity of our national activities increase, new recruits are added to those who desire a continuation of the advantages which they conceive the present system of tariff taxation directly affords them. So stubbornly have all efforts to reform the present condition been resisted by those of our fellow-citizens thus engaged that they can hardly complain of the suspicion, entertained to a certain extent, that there exists an organized combination 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 ingenuity, in American energy and enterprise, and in the wonderful natural advantages and resources developed by a century's national growth. Yet when an attempt is made to justify a scheme which permits a tax to be laid upon every consumer in the land for the benefit of our manufacturers, quite beyond a reasonable demand for governmental regard, it suits the purposes of advocacy to call our manufactures infant industries still needing the highest and greatest degree of favor and fostering care that can be wrung from Federal legislation. It is also said that the increase in the price of domestic manufactures resulting from the present tariff is necessary in order that higher wages may be paid to our workingmen employed in manufactories than are paid for what is called the pauper labor of Europe. All will acknowledge the force of an argument which involves the welfare and liberal compensation of our laboring people. Our labor 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 affectation or hypocrisy, to the utmost regard. The standard of our laborers' life should not be measured by that of any other country less favored, and they are entitled to their full share of all 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 in agriculture, 4,074,238 in professional and personal service (2,934,876 of whom are domestic servants and laborers), while 1,810,256 are employed in trade and transportation and 3,837,112 are classed as employed in manufacturing and mining. For present purposes, however, the last number given should be considerably reduced. Without attempting to enumerate all, it will be conceded that there should be deducted from those which it includes 375,143 carpenters and joiners, 285,401 milliners, dressmakers, and seamstresses, 172,726 blacksmiths, 133,756 tailors and tailoresses, 102,473 masons, 76,241 butchers, 41,309 bakers, 22,083 plasterers, and 4,891 engaged in manufacturing agricultural implements, amounting in the aggregate to 1,214,023, leaving 2,623,089 persons employed in such manufacturing industries as are claimed to be benefited by a high tariff. To these the appeal is made to save their employment and maintain their wages by resisting a change. There should be no disposition to answer such suggestions by the allegation that they are in a minority among those who labor, and therefore should forego an advantage in the interest of low prices for the majority. Their compensation, as it may be affected by the operation of tariff laws, should at all times be scrupulously kept in view; and yet with slight reflection 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 price 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 demanded should be so measured as not to necessitate or justify either the loss of employment by the workingman or the lessening of his wages; and the profits still remaining to the manufacturer after a necessary readjustment should furnish no excuse for the sacrifice of the interests of his employees, either in their opportunity to work or in the diminution of their compensation. Nor can the worker in manufactures fail to understand that while a high tariff is claimed to be necessary to allow the payment of remunerative wages, it certainly results in a very large increase 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 receives at the desk of his employer his wages, and perhaps before he reaches his home is obliged, in a purchase for family use of an article which embraces his own labor, 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 and the agriculturist, who manufacture nothing, but who pay the increased price which the tariff imposes upon every agricultural implement, upon all he wears, and upon all he uses and owns, except the increase of his flocks and herds and such things as his husbandry produces from the soil, is invited to aid in maintaining the present situation; and he is told that a high duty on imported wool is necessary for the benefit of those who have sheep to shear, in order that the price of their wool may be increased. They, of course, are not reminded that the farmer who has no sheep is by this scheme obliged, in his purchases of clothing and woolen goods, to pay a tribute to his fellow-farmer as well as to the manufacturer and merchant, nor is any mention made of the fact that the sheep owners themselves and their households must wear clothing and use other articles manufactured from the wool they sell at tariff prices, and thus as consumers must return their share of this increased price to the tradesman. I think it may be fairly assumed that a large proportion of the sheep owned by the farmers throughout the country are found in small flocks, numbering from twenty-five to fifty. The duty on the grade of imported wool which these sheep yield is 10 cents each pound if of the value of 30 cents or less and 12 cents if of the value of more than 30 cents. If the liberal estimate of 6 pounds be allowed for each fleece, the duty thereon would be 60 or 72 cents; and this may be taken as the utmost enhancement of its price to the farmer by reason of this duty. Eighteen dollars would thus represent the increased price of the wool from twenty-five sheep and $36 that from the wool of fifty sheep; and at present values this addition would amount to about one-third of 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 consumer. When manufactured into cloth and other goods and material for use, its cost is not only increased to the extent of the farmer's tariff profit, but a further sum has been added for the benefit of the manufacturer under the operation of other tariff laws. In the meantime the day arrives when the farmer finds it necessary to purchase woolen goods and material to clothe himself and family for the winter. When he faces the tradesman for that purpose, he discovers that he is obliged not only 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 increase in cost caused by a tariff duty on the manufacture. Thus in the end he 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 engaged 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 the case of a large part of those who own sheep the benefit of the present tariff on wool is illusory; and, above all, when it must be conceded that the increase of the cost of living caused by such tariff becomes a burden upon those with moderate means and the poor, the employed and unemployed, the sick and well, and the young and old, and that it constitutes a tax which with relentless grasp is fastened upon the clothing of every man, woman, and child in the land, reasons are suggested why the removal or reduction of this duty should be included in a revision of our tariff laws. In speaking of the increased cost to the consumer of our home manufactures resulting from a duty laid upon imported articles of the same description, the fact is not ever looked that competition among our domestic producers sometimes has the effect of keeping the price of their products below the highest limit allowed by such duty. But it is notorious that this competition is too often strangled by combinations quite prevalent at this time, and frequently called trusts, which have for their object the regulation of the supply and price of commodities made and sold by members of the combination. The people can hardly hope for any consideration in the operation of these selfish schemes. If, however, in the absence of such combination, a healthy and free competition reduces the price of any particular dutiable article of home production below the limit which it might otherwise reach under our tariff laws, and if with such reduced price its manufacture continues to thrive, it is entirely evident that one thing has been discovered which should be carefully scrutinized in an effort to reduce taxation. The necessity of combination to maintain the price of any commodity to the tariff point furnishes proof that someone is willing to accept lower prices for such commodity and that such prices are remunerative; and lower prices produced by competition prove the same thing. Thus where either of these conditions exists a case would seem to be presented for an easy reduction of taxation. The considerations which have been presented touching our tariff laws are intended only to enforce an earnest recommendation that the surplus revenues of the Government be prevented by the reduction of our customs duties, and at the same time to emphasize a suggestion that in accomplishing this purpose we may discharge a double duty to our people by granting to them a measure of relief from tariff taxation in quarters where it is most needed and from sources where it can be most fairly and justly accorded. Nor can the presentation made of such considerations be with any degree of fairness regarded as evidence of unfriendliness toward our manufacturing interests or of any lack of appreciation of their value and importance. These interests constitute a leading and most substantial element of our national greatness and furnish the proud proof of our country's progress. But if in the emergency that presses upon us our manufacturers are asked to surrender something for the public good and to avert disaster, their patriotism, as well as a grateful recognition of advantages already afforded, should lead them to willing cooperation. No demand is made that they shall forego all the benefits of governmental regard; but they can not fail to be admonished of their duty, as well as their enlightened self-interest and safety, when they are reminded of the fact that financial panic and collapse, to which the present condition tends, afford no greater shelter or protection to our manufactures than to other important enterprises. Opportunity for safe, careful, and deliberate reform is now offered; and none of us should be unmindful of a time when an abused and irritated people, heedless of those who have resisted timely and reasonable relief, may insist upon a radical and sweeping rectification of their wrongs. The difficulty attending a wise and fair revision of our tariff laws is not underestimated. It will require on the part of the Congress great labor and care, and especially a broad and national contemplation of the subject and a patriotic disregard of such local and selfish claims as are unreasonable and reckless of the welfare of the entire country. Under our present laws more than 4,000 articles are subject to duty. Many of these do not in any way compete with our own manufactures, and many are hardly worth attention as subjects of revenue. A considerable reduction can be made in the aggregate by adding them to the free list. The taxation of luxuries presents no features of hardship; but the necessaries of life used and consumed by all the people, the duty upon which adds to the cost of living in every home, should be greatly cheapened. The radical reduction of the duties imposed upon raw material used in manufactures, or its free importation, is of course an important factor in any effort to reduce the price of these necessaries. It would not only relieve them from the increased cost caused by the tariff on such material, but the manufactured product being thus cheapened that part of the tariff now laid upon such product, as a compensation to our manufacturers for the present price of raw material, could be accordingly modified. Such reduction or free importation would serve besides to largely reduce the revenue. It is not apparent how such a change can have any injurious effect upon our manufacturers. On the contrary, it would appear to give them a better chance in foreign markets with the manufacturers of other countries, who cheapen their wares by free material. Thus our people might have the opportunity of extending their sales beyond the limits of home consumption, saving them from the depression, interruption in business, and loss caused by a glutted domestic market and affording their employees more certain and steady labor, with its resulting quiet and contentment. The question thus imperatively presented for solution should be approached in a spirit higher than partisanship and considered in the light of that regard for patriotic duty which should characterize the action of those intrusted with the weal of a confiding people. But the obligation to declared party policy and principle is not wanting to urge prompt and effective action. Both of the great political parties now represented in the Government have by repeated and authoritative declarations condemned the condition of our laws which permit the collection from the people of unnecessary revenue, and have in the most solemn manner promised its correction; and neither as citizens nor partisans are our countrymen in a mood to condone the deliberate violation of these pledges. Our progress toward a wise conclusion will not be improved by dwelling upon the theories of protection and free trade. This savors too much of bandying epithets. It is a condition which confronts us, not a theory. Relief from this condition may involve a slight reduction of the advantages which we award our home productions, but the entire withdrawal of such advantages should not be contemplated. The question of free trade is absolutely irrelevant, and the persistent claim made in certain quarters that all the efforts to relieve the people from unjust and unnecessary taxation are schemes of so-called free traders is mischievous and far removed from any consideration for the public good. The simple and plain duty which we owe the people is to reduce taxation to the necessary expenses of an economical operation of the Government and to restore to the business of the country the money which we hold in the Treasury through the perversion of governmental powers. These things can and should be done with safety to all our industries, without danger to the opportunity for remunerative labor which our workingmen need, and with benefit to them and all our people by cheapening their means of subsistence and increasing the measure of their comforts. The Constitution provides that the President "shall from time to time give to the Congress information of the state of the Union." It has been the custom of the Executive, in compliance with this provision, to annually exhibit to the Congress, at the opening of its session, the general condition of the country, and to detail with some particularity the operations of the different Executive Departments. It would be especially agreeable to follow this course at the present time and to call attention to the valuable accomplishments of these Departments during the last fiscal year; but I am so much impressed with the paramount importance of the subject to which this communication has thus far been devoted that I shall forego the addition of any other topic, and only urge upon your immediate consideration the "state of the Union" as shown in the present condition of our Treasury and our general fiscal situation, upon which every element of our safety and prosperity depends. The reports of the heads of Departments, which will be submitted, contain full and explicit information touching the transaction of the business intrusted to them and such recommendations relating to legislation in the public interest as they deem advisable. I ask for these reports and recommendations the deliberate examination and action of the legislative branch of the Government. There are other subjects not embraced in the departmental reports demanding legislative consideration, and which I should be glad to submit. Some of them, however, have been earnestly presented in previous messages, and as to them I beg leave to repeat prior recommendations. As the law makes no provision for any report from the Department of State, a brief history of the transactions of that important Department, together with other matters which it may hereafter be deemed essential to commend to the attention of the Congress, may furnish the occasion for a future communication.
you are confronted at the threshold of your legislative duties with a condition of the national finances which imperatively demands immediate and careful consideration the amount of money annually exacted through the operation of present laws from the industries and necessities of the people largely exceeds the sum necessary to meet the expenses of the government when we consider that the theory of our institutions guarantees to every citizen the full enjoyment of all the fruits of his industry and enterprise with only such deduction as may be his share toward the careful and economical maintenance of the government which protects him it is plain that the exaction of more than this is indefensible extortion and a culpable betrayal of american fairness and justice this wrong inflicted upon those who bear the burden of national taxation like other wrongs multiplies a brood of evil consequences the public treasury which should only exist as a conduit conveying the people tribute to its legitimate objects of expenditure becomes a hoarding place for money needlessly withdrawn from trade and the people use thus crippling our national energies suspending our country development preventing investment in productive enterprise threatening 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 representatives in the congress who alone can apply a remedy and yet the situation still continues with aggravated incidents more than ever presaging financial convulsion and widespread disaster it will not do to neglect this situation because its dangers are not now palpably imminent and apparent they exist none the less certainly 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 requirement of the act was during the year ended june 30 1886 such excess amounted to and during the year ended june 30 1887 it reached the sum of the annual contributions to the sinking fund during the three years above specified amounting in the aggregate to and deducted from the surplus as stated were made by calling in for that purpose outstanding 3 per cent bonds of the government during the six months prior to june 30 1887 the surplus revenue had grown so large by repeated accumulations and it was feared the withdrawal of this great sum of money needed by the people would so affect the business of the country that the sum of of such surplus was applied to the payment of the principal and interest of the 3 per cent bonds still outstanding and which were then payable at the option of the government the precarious condition of financial affairs among the people still needing relief immediately after the 30th day of june 1887 the remainder of the 3 per cent bonds then outstanding amounting with principal and interest to the sum of were called in and applied to the contribution for the current fiscal year notwithstanding these operations of the treasury department representations of distress in business circles not only continued but increased and absolute peril seemed at hand in these circumstances the contribution to the sinking fund for the current fiscal year was at once completed by the expenditure of in the purchase of government bonds not yet due bearing 4 and per cent interest the premium paid thereon averaging about 24 per cent for the former and 8 per cent for the latter in addition to this the interest accruing during the current year upon the outstanding bonded indebtedness of the government was to some extent anticipated and banks selected as depositories of public money were permitted to somewhat increase their deposits while the expedients thus employed to release to the people the money lying idle in the treasury served to avert immediate danger our surplus revenues have continued to accumulate the excess for the present year amounting on the 1st day of december to and estimated to reach the sum of on the 30th of june next at which date it is expected that this sum added to prior accumulations will swell the surplus in the treasury to there seems to be no assurance that with such a withdrawal from use of the people circulating medium our business community may not in the near future be subjected to the same distress which was quite lately produced from the same because and while the functions of our national treasury should be few and simple and while its best condition would be reached i believe by its entire disconnection with private business interests yet when by a perversion of its purposes it idly holds money uselessly subtracted from the channels of trade there seems to be reason for the claim that some legitimate means should be devised by the government to restore in an emergency without waste or extravagance such money to its place among the people 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 disbursement 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 a right to insist upon the contribution to the sinking fund which furnishes the occasion for expenditure in the purchase of bonds has been already made for the current year so that there is no outlet in that direction in the present state of legislation the only pretense of any existing executive power to restore at this time any part of our surplus revenues to the people by its expenditure consists in the supposition that the secretary of the treasury may enter the market and purchase the bonds of the government not yet due at a rate of premium to be agreed upon the only provision of law from which such a power could be derived is found in an appropriation 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 authority no condition ought to exist which would justify the grant of power to a single official upon his judgment of its necessity to withhold from or release to the business of the people in an unusual manner money held in the treasury and thus affect at his will the financial situation of the country and if it is deemed wise to lodge in the secretary of the treasury the authority in the present juncture to purchase bonds it should be plainly vested and provided as far as possible with such checks and limitations as will define this official right and discretion and at the same time relieve him from undue responsibility in considering the question of purchasing bonds as a means of restoring to circulation the surplus money accumulating in the treasury it should be borne in mind that premiums must of course be paid upon such purchase that there may be a large part of these bonds held as investments which can not be purchased at any price and that combinations among holders who are willing to sell may unreasonably enhance the cost of such bonds to the government it has been suggested that the present bonded debt might be refunded 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 inducement which must be offered them would result in more financial benefit to the government than the purchase of bonds while the latter proposition would reduce the principal of the debt by actual payment instead of extending it the proposition to deposit the money held by the government in banks throughout the country for use by the people is it seems to me exceedingly objectionable in principle as establishing too close a relationship between the operations of the government treasury and the business of the country and too extensive a commingling of their money thus fostering an unnatural reliance in private business upon public funds if this scheme should be adopted it should only be done as a temporary expedient to meet an urgent necessity legislative and executive effort should generally be in the opposite direction and should have a tendency to divorce as much and as fast as can be safely done the treasury department from private enterprise of course it is not expected that unnecessary and extravagant appropriations will be made for the purpose of avoiding the accumulation of an excess of revenue such expenditure 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 purposes of our government i have deemed it my duty to thus bring to the knowledge of my countrymen as well as to the attention of their representatives charged with the responsibility of legislative relief the gravity of our financial situation the failure of the 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 last adjournment 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 continued inaction of congress the responsibility must rest where it belongs though the situation thus far considered is fraught with danger which should be fully realized and though it presents features of wrong to the people as well as peril to the country it is but a result growing out of a perfectly palpable and apparent because constantly reproducing the same alarming circumstances a congested national treasury and a depleted monetary condition in the business of the country it need hardly be stated that while the present situation demands a remedy we can only be saved from a like predicament in the future by the removal of its because our scheme of taxation by means of which this needless surplus is taken from the people and put into the public treasury consists of a tariff or duty levied upon importations from abroad and taxes levied upon the consumption of tobacco and spirituous and malt liquors it must be conceded that none of the things subjected to taxation are strictly speaking necessaries there appears to be no just complaint of this taxation by the consumers of these articles and there seems to be nothing 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 effect raise the price to consumers of all articles imported and subject to duty by precisely the sum paid for such duties thus the amount of the duty measures the tax paid by those who purchase for 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 products are called protection to these home manufactures because they render it possible for those of our people who are manufacturers 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 used 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 articles 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 manner in which they impose a burden upon those who consume domestic 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 taxation it must be extensively continued as the source of the government income and in a readjustment of our tariff the interests of american labor engaged in manufacture 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 our present tariff laws should be devised with especial precaution against imperiling the existence of our manufacturing interests but this existence should not mean a condition which without regard to the public welfare or a national exigency must always insure the realization of immense profits instead of moderately profitable returns as the volume and diversity of our national activities increase new recruits are added to those who desire a continuation of the advantages which they conceive the present system of tariff taxation directly affords them so stubbornly have all efforts to reform the present condition been resisted by those of our thus engaged that they can hardly complain of the suspicion entertained to a certain extent that there exists an organized combination 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 ingenuity in american energy and enterprise and in the wonderful natural advantages and resources developed by a century national growth yet when an attempt is made to justify a scheme which permits a tax to be laid upon every consumer in the land for the benefit of our manufacturers quite beyond a reasonable demand for governmental regard it suits the purposes of advocacy to call our manufactures infant industries still needing the highest and greatest degree of favor and fostering care that can be wrung from federal legislation it is also said that the increase in the price of domestic manufactures resulting from the present tariff is necessary in order that higher wages may be paid to our workingmen employed in manufactories than are paid for what is called the pauper labor of europe all will acknowledge the force of an argument which involves the welfare and liberal compensation of our laboring people our labor 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 affectation or hypocrisy to the utmost regard the standard of our laborers life should not be measured by that of any other country less favored and they are entitled to their full share of all our advantages by the last census it is made to appear that of the of our population engaged in all kinds of industries are employed in agriculture in professional and personal service of whom are domestic servants and laborers while are employed in trade and transportation and are classed as employed in manufacturing and mining for present purposes however the last number given should be considerably reduced without attempting to enumerate all it will be conceded that there should be deducted from those which it includes carpenters and joiners milliners dressmakers and seamstresses blacksmiths tailors and tailoresses masons butchers bakers plasterers and engaged in manufacturing agricultural implements amounting in the aggregate to leaving persons employed in such manufacturing industries as are claimed to be benefited by a high tariff to these the appeal is made to save their employment and maintain their wages by resisting a change there should be no disposition to answer such suggestions by the allegation that they are in a minority among those who labor and therefore should forego an advantage in the interest of low prices for the majority their compensation as it may be affected by the operation of tariff laws should at all times be scrupulously kept in view and yet with slight reflection 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 price 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 demanded should be so measured as not to necessitate or justify either the loss of employment by the workingman or the lessening of his wages and the profits still remaining to the manufacturer after a necessary readjustment should furnish no excuse for the sacrifice of the interests of his employees either in their opportunity to work or in the diminution of their compensation nor can the worker in manufactures fail to understand that while a high tariff is claimed to be necessary to allow the payment of remunerative wages it certainly results in a very large increase 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 receives at the desk of his employer his wages and perhaps before he reaches his home is obliged in a purchase for family use of an article which embraces his own labor to return in the payment of the increase in price which the tariff permits the compensation of many days of toil the farmer and the agriculturist who manufacture nothing but who pay the increased price which the tariff imposes upon every agricultural implement upon all he wears and upon all he uses and owns except the increase of his flocks and herds and such things as his husbandry produces from the soil is invited to aid in maintaining the present situation and he is told that a high duty on imported wool is necessary for the benefit of those who have sheep to shear in order that the price of their wool may be increased they of course are not reminded that the farmer who has no sheep is by this scheme obliged in his purchases of clothing and woolen goods to pay a tribute to his as well as to the manufacturer and merchant nor is any mention made of the fact that the sheep owners themselves and their households must wear clothing and use other articles manufactured from the wool they sell at tariff prices and thus as consumers must return their share of this increased price to the tradesman i think it may be fairly assumed that a large proportion of the sheep owned by the farmers throughout the country are found in small flocks numbering from to fifty the duty on the grade of imported wool which these sheep yield is 10 cents each pound if of the value of 30 cents or less and 12 cents if of the value of more than 30 cents if the liberal estimate of 6 pounds be allowed for each fleece the duty thereon would be 60 or 72 cents and this may be taken as the utmost enhancement of its price to the farmer by reason of this duty eighteen dollars would thus represent the increased price of the wool from sheep and 36 that from the wool of fifty sheep and at present values this addition would amount to about of 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 consumer when manufactured into cloth and other goods and material for use its cost is not only increased to the extent of the farmer tariff profit but a further sum has been added for the benefit of the manufacturer under the operation of other tariff laws in the meantime the day arrives when the farmer finds it necessary to purchase woolen goods and material to clothe himself and family for the winter when he faces the tradesman for that purpose he discovers that he is obliged not only 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 increase in cost caused by a tariff duty on the manufacture thus in the end he 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 engaged 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 the case of a large part of those who own sheep the benefit of the present tariff on wool is illusory and above all when it must be conceded that the increase of the cost of living caused by such tariff becomes a burden upon those with moderate means and the poor the employed and unemployed the sick and well and the young and old and that it constitutes a tax which with relentless grasp is fastened upon the clothing of every man woman and child in the land reasons are suggested why the removal or reduction of this duty should be included in a revision of our tariff laws in speaking of the increased cost to the consumer of our home manufactures resulting from a duty laid upon imported articles of the same description the fact is not ever looked that competition among our domestic producers sometimes has the effect of keeping the price of their products below the highest limit allowed by such duty but it is notorious that this competition is too often strangled by combinations quite prevalent at this time and frequently called trusts which have for their object the regulation of the supply and price of commodities made and sold by members of the combination the people can hardly hope for any consideration in the operation of these selfish schemes if however in the absence of such combination a healthy and free competition reduces the price of any particular dutiable article of home production below the limit which it might otherwise reach under our tariff laws and if with such reduced price its manufacture continues to thrive it is entirely evident that one thing has been discovered which should be carefully scrutinized in an effort to reduce taxation the necessity of combination to maintain the price of any commodity to the tariff point furnishes proof that someone is willing to accept lower prices for such commodity and that such prices are remunerative and lower prices produced by competition prove the same thing thus where either of these conditions exists a case would seem to be presented for an easy reduction of taxation the considerations which have been presented touching our tariff laws are intended only to enforce an earnest recommendation that the surplus revenues of the government be prevented by the reduction of our customs duties and at the same time to emphasize a suggestion that in accomplishing this purpose we may discharge a double duty to our people by granting to them a measure of relief from tariff taxation in quarters where it is most needed and from sources where it can be most fairly and justly accorded nor can the presentation made of such considerations be with any degree of fairness regarded as evidence of unfriendliness toward our manufacturing interests or of any lack of appreciation of their value and importance these interests constitute a leading and most substantial element of our national greatness and furnish the proud proof of our country progress but if in the emergency that presses upon us our manufacturers are asked to surrender something for the public good and to avert disaster their patriotism as well as a grateful recognition of advantages already afforded should lead them to willing cooperation no demand is made that they shall forego all the benefits of governmental regard but they can not fail to be admonished of their duty as well as their enlightened and safety when they are reminded of the fact that financial panic and collapse to which the present condition tends afford no greater shelter or protection to our manufactures than to other important enterprises opportunity for safe careful and deliberate reform is now offered and none of us should be unmindful of a time when an abused and irritated people heedless of those who have resisted timely and reasonable relief may insist upon a radical and sweeping rectification of their wrongs the difficulty attending a wise and fair revision of our tariff laws is not underestimated it will require on the part of the congress great labor and care and especially a broad and national contemplation of the subject and a patriotic disregard of such local and selfish claims as are unreasonable and reckless of the welfare of the entire country under our present laws more than articles are subject to duty many of these do not in any way compete with our own manufactures and many are hardly worth attention as subjects of revenue a considerable reduction can be made in the aggregate by adding them to the free list the taxation of luxuries presents no features of hardship but the necessaries of life used and consumed by all the people the duty upon which adds to the cost of living in every home should be greatly cheapened the radical reduction of the duties imposed upon raw material used in manufactures or its free importation is of course an important factor in any effort to reduce the price of these necessaries it would not only relieve them from the increased cost caused by the tariff on such material but the manufactured product being thus cheapened that part of the tariff now laid upon such product as a compensation to our manufacturers for the present price of raw material could be accordingly modified such reduction or free importation would serve besides to largely reduce the revenue it is not apparent how such a change can have any injurious effect upon our manufacturers on the contrary it would appear to give them a better chance in foreign markets with the manufacturers of other countries who cheapen their wares by free material thus our people might have the opportunity of extending their sales beyond the limits of home consumption saving them from the depression interruption in business and loss caused by a glutted domestic market and affording their employees more certain and steady labor with its resulting quiet and contentment the question thus imperatively presented for solution should be approached in a spirit higher than partisanship and considered in the light of that regard for patriotic duty which should characterize the action of those intrusted with the weal of a confiding people but the obligation to declared party policy and principle is not wanting to urge prompt and effective action both of the great political parties now represented in the government have by repeated and authoritative declarations condemned the condition of our laws which permit the collection from the people of unnecessary revenue and have in the most solemn manner promised its correction and neither as citizens nor partisans are our countrymen in a mood to condone the deliberate violation of these pledges our progress toward a wise conclusion will not be improved by dwelling upon the theories of protection and free trade this savors too much of bandying epithets it is a condition which confronts us not a theory relief from this condition may involve a slight reduction of the advantages which we award our home productions but the entire withdrawal of such advantages should not be contemplated the question of free trade is absolutely irrelevant and the persistent claim made in certain quarters that all the efforts to relieve the people from unjust and unnecessary taxation are schemes of free traders is mischievous and far removed from any consideration for the public good the simple and plain duty which we owe the people is to reduce taxation to the necessary expenses of an economical operation of the government and to restore to the business of the country the money which we hold in the treasury through the perversion of governmental powers these things can and should be done with safety to all our industries without danger to the opportunity for remunerative labor which our workingmen need and with benefit to them and all our people by cheapening their means of subsistence and increasing the measure of their comforts the constitution provides that the president shall from time to time give to the congress information of the state of the union it has been the custom of the executive in compliance with this provision to annually exhibit to the congress at the opening of its session the general condition of the country and to detail with some particularity the operations of the different executive departments it would be especially agreeable to follow this course at the present time and to call attention to the valuable accomplishments of these departments during the last fiscal year but i am so much impressed with the paramount importance of the subject to which this communication has thus far been devoted that i shall forego the addition of any other topic and only urge upon your immediate consideration the state of the union as shown in the present condition of our treasury and our general fiscal situation upon which every element of our safety and prosperity depends the reports of the heads of departments which will be submitted contain full and explicit information touching the transaction of the business intrusted to them and such recommendations relating to legislation in the public interest as they deem advisable i ask for these reports and recommendations the deliberate examination and action of the legislative branch of the government there are other subjects not embraced in the departmental reports demanding legislative consideration and which i should be glad to submit some of them however have been earnestly presented in previous messages and as to them i beg leave to repeat prior recommendations as the law makes no provision for any report from the department of state a brief history of the transactions of that important department together with other matters which it may hereafter be deemed essential to commend to the attention of the congress may furnish the occasion for a future communication
confronted threshold legislative duties condition national finances imperatively demands immediate careful consideration amount money annually exacted operation present laws industries necessities people largely exceeds sum necessary meet expenses government consider theory institutions guarantees every citizen full enjoyment fruits industry enterprise deduction may share toward careful economical maintenance government protects plain exaction indefensible extortion culpable betrayal american fairness justice wrong inflicted upon bear burden national taxation like wrongs multiplies brood evil consequences public treasury exist conduit conveying people tribute legitimate objects expenditure becomes hoarding place money needlessly withdrawn trade people use thus crippling national energies suspending country development preventing investment productive enterprise threatening financial disturbance inviting schemes public plunder condition treasury altogether new late submitted people representatives congress alone apply remedy yet situation still continues aggravated incidents ever presaging financial convulsion widespread disaster neglect situation dangers palpably imminent apparent exist none less certainly await unforeseen unexpected occasion suddenly precipitated upon us 30th day june 1885 excess revenues public expenditures complying annual requirement act year ended june 30 1886 excess amounted year ended june 30 1887 reached sum annual contributions sinking fund three years specified amounting aggregate deducted surplus stated made calling purpose outstanding 3 per cent bonds government six months prior june 30 1887 surplus revenue grown large repeated accumulations feared withdrawal great sum money needed people would affect business country sum surplus applied payment principal interest 3 per cent bonds still outstanding payable option government precarious condition financial affairs among people still needing relief immediately 30th day june 1887 remainder 3 per cent bonds outstanding amounting principal interest sum called applied contribution current fiscal year notwithstanding operations treasury department representations distress business circles continued increased absolute peril seemed hand circumstances contribution sinking fund current fiscal year completed expenditure purchase government bonds yet due bearing 4 per cent interest premium paid thereon averaging 24 per cent former 8 per cent latter addition interest accruing current year upon outstanding bonded indebtedness government extent anticipated banks selected depositories public money permitted somewhat increase deposits expedients thus employed release people money lying idle treasury served avert immediate danger surplus revenues continued accumulate excess present year amounting 1st day december estimated reach sum 30th june next date expected sum added prior accumulations swell surplus treasury seems assurance withdrawal use people circulating medium business community may near future subjected distress quite lately produced functions national treasury simple best condition would reached believe entire disconnection private business interests yet perversion purposes idly holds money uselessly subtracted channels trade seems reason claim legitimate means devised government restore emergency without waste extravagance money place among people emergency arises exists clear undoubted executive power relief heretofore redemption 3 per cent bonds payable option government afforded means disbursement excess revenues bonds retired bonds outstanding payment right insist upon contribution sinking fund furnishes occasion expenditure purchase bonds already made current year outlet direction present state legislation pretense existing executive power restore time part surplus revenues people expenditure consists supposition secretary treasury may enter market purchase bonds government yet due rate premium agreed upon provision law power could derived found appropriation bill passed number years ago subject suspicion intended temporary limited application instead conferring continuing discretion authority condition ought exist would justify grant power single official upon judgment necessity withhold release business people unusual manner money held treasury thus affect financial situation country deemed wise lodge secretary treasury authority present juncture purchase bonds plainly vested provided far possible checks limitations define official right discretion time relieve undue responsibility considering question purchasing bonds means restoring circulation surplus money accumulating treasury borne mind premiums must course paid upon purchase may large part bonds held investments purchased price combinations among holders willing sell may unreasonably enhance cost bonds government suggested present bonded debt might refunded less rate interest difference old new security paid cash thus finding use surplus treasury success plan apparent must depend upon volition holders present bonds entirely certain inducement must offered would result financial benefit government purchase bonds latter proposition would reduce principal debt actual payment instead extending proposition deposit money held government banks throughout country use people seems exceedingly objectionable principle establishing close relationship operations government treasury business country extensive commingling money thus fostering unnatural reliance private business upon public funds scheme adopted done temporary expedient meet urgent necessity legislative executive effort generally opposite direction tendency divorce much fast safely done treasury department private enterprise course expected unnecessary extravagant appropriations made purpose avoiding accumulation excess revenue expenditure besides demoralization conceptions public duty entails stimulates habit reckless improvidence least consistent mission people high beneficent purposes government deemed duty thus bring knowledge countrymen well attention representatives charged responsibility legislative relief gravity financial situation failure congress heretofore provide dangers quite evident nature difficulty must necessarily produce caused condition financial distress apprehension since last adjournment taxed utmost authority expedients within executive control appear exhausted disaster results continued inaction congress responsibility must rest belongs though situation thus far considered fraught danger fully realized though presents features wrong people well peril country result growing perfectly palpable apparent constantly reproducing alarming circumstances congested national treasury depleted monetary condition business country need hardly stated present situation demands remedy saved like predicament future removal scheme taxation means needless surplus taken people put public treasury consists tariff duty levied upon importations abroad taxes levied upon consumption tobacco spirituous malt liquors must conceded none things subjected taxation strictly speaking necessaries appears complaint taxation consumers articles seems nothing well able bear burden without hardship portion people present tariff laws vicious inequitable illogical source unnecessary taxation ought revised amended laws primary plain effect raise price consumers articles imported subject duty precisely sum paid duties thus amount duty measures tax paid purchase use imported articles many things however raised manufactured country duties levied upon foreign goods products called protection home manufactures render possible people manufacturers make taxed articles sell price equal demanded imported goods paid customs duty happens comparatively use imported articles millions people never used never saw foreign products purchase use things kind made country pay therefor nearly quite enhanced price duty adds imported articles buy imports pay duty charged thereon public treasury great majority citizens buy domestic articles class pay sum least approximately equal duty home manufacturer reference operation tariff laws made way instruction order may constantly reminded manner impose burden upon consume domestic products well consume imported articles thus create tax upon people proposed entirely relieve country taxation must extensively continued source government income readjustment tariff interests american labor engaged manufacture carefully considered well preservation manufacturers may called protection name relief hardships dangers present tariff laws devised especial precaution imperiling existence manufacturing interests existence mean condition without regard public welfare national exigency must always insure realization immense profits instead moderately profitable returns volume diversity national activities increase new recruits added desire continuation advantages conceive present system tariff taxation directly affords stubbornly efforts reform present condition resisted thus engaged hardly complain suspicion entertained certain extent exists organized combination along line maintain advantage midst centennial celebrations becoming pride rejoice american skill ingenuity american energy enterprise wonderful natural advantages resources developed century national growth yet attempt made justify scheme permits tax laid upon every consumer land benefit manufacturers quite beyond reasonable demand governmental regard suits purposes advocacy call manufactures infant industries still needing highest greatest degree favor fostering care wrung federal legislation also said increase price domestic manufactures resulting present tariff necessary order higher wages may paid workingmen employed manufactories paid called pauper labor europe acknowledge force argument involves welfare liberal compensation laboring people labor honorable eyes every american citizen lies foundation development progress entitled without affectation hypocrisy utmost regard standard laborers life measured country less favored entitled full share advantages last census made appear population engaged kinds industries employed agriculture professional personal service domestic servants laborers employed trade transportation classed employed manufacturing mining present purposes however last number given considerably reduced without attempting enumerate conceded deducted includes carpenters joiners milliners dressmakers seamstresses blacksmiths tailors tailoresses masons butchers bakers plasterers engaged manufacturing agricultural implements amounting aggregate leaving persons employed manufacturing industries claimed benefited high tariff appeal made save employment maintain wages resisting change disposition answer suggestions allegation minority among labor therefore forego advantage interest low prices majority compensation may affected operation tariff laws times scrupulously kept view yet slight reflection overlook fact consumers rest wants families supply earnings price necessaries life well amount wages regulate measure welfare comfort reduction taxation demanded measured necessitate justify either loss employment workingman lessening wages profits still remaining manufacturer necessary readjustment furnish excuse sacrifice interests employees either opportunity work diminution compensation worker manufactures fail understand high tariff claimed necessary allow payment remunerative wages certainly results large increase price nearly sorts manufactures almost countless forms needs use family receives desk employer wages perhaps reaches home obliged purchase family use article embraces labor return payment increase price tariff permits compensation many days toil farmer agriculturist manufacture nothing pay increased price tariff imposes upon every agricultural implement upon wears upon uses owns except increase flocks herds things husbandry produces soil invited aid maintaining present situation told high duty imported wool necessary benefit sheep shear order price wool may increased course reminded farmer sheep scheme obliged purchases clothing woolen goods pay tribute well manufacturer merchant mention made fact sheep owners households must wear clothing use articles manufactured wool sell tariff prices thus consumers must return share increased price tradesman think may fairly assumed large proportion sheep owned farmers throughout country found small flocks numbering fifty duty grade imported wool sheep yield 10 cents pound value 30 cents less 12 cents value 30 cents liberal estimate 6 pounds allowed fleece duty thereon would 60 72 cents may taken utmost enhancement price farmer reason duty eighteen dollars would thus represent increased price wool sheep 36 wool fifty sheep present values addition would amount price upon sale farmer receives less tariff profit wool leaves hands charged precisely sum changes adhere reaches consumer manufactured cloth goods material use cost increased extent farmer tariff profit sum added benefit manufacturer operation tariff laws meantime day arrives farmer finds necessary purchase woolen goods material clothe family winter faces tradesman purpose discovers obliged return way increased prices tariff profit wool sold perhaps lies manufactured form must add considerable sum thereto meet increase cost caused tariff duty manufacture thus end aroused fact paid upon moderate purchase result tariff scheme sold wool seemed profitable increase price sufficient sweep away tariff profit received upon wool produced sold number farmers engaged wool raising compared farmers country small proportion bear population considered made apparent case large part sheep benefit present tariff wool illusory must conceded increase cost living caused tariff becomes burden upon moderate means poor employed unemployed sick well young old constitutes tax relentless grasp fastened upon clothing every man woman child land reasons suggested removal reduction duty included revision tariff laws speaking increased cost consumer home manufactures resulting duty laid upon imported articles description fact ever looked competition among domestic producers sometimes effect keeping price products highest limit allowed duty notorious competition often strangled combinations quite prevalent time frequently called trusts object regulation supply price commodities made sold members combination people hardly hope consideration operation selfish schemes however absence combination healthy free competition reduces price particular dutiable article home production limit might otherwise reach tariff laws reduced price manufacture continues thrive entirely evident one thing discovered carefully scrutinized effort reduce taxation necessity combination maintain price commodity tariff point furnishes proof someone willing accept lower prices commodity prices remunerative lower prices produced competition prove thing thus either conditions exists case would seem presented easy reduction taxation considerations presented touching tariff laws intended enforce earnest recommendation surplus revenues government prevented reduction customs duties time emphasize suggestion accomplishing purpose may discharge double duty people granting measure relief tariff taxation quarters needed sources fairly justly accorded presentation made considerations degree fairness regarded evidence unfriendliness toward manufacturing interests lack appreciation value importance interests constitute leading substantial element national greatness furnish proud proof country progress emergency presses upon us manufacturers asked surrender something public good avert disaster patriotism well grateful recognition advantages already afforded lead willing cooperation demand made shall forego benefits governmental regard fail admonished duty well enlightened safety reminded fact financial panic collapse present condition tends afford greater shelter protection manufactures important enterprises opportunity safe careful deliberate reform offered none us unmindful time abused irritated people heedless resisted timely reasonable relief may insist upon radical sweeping rectification wrongs difficulty attending wise fair revision tariff laws underestimated require part congress great labor care especially broad national contemplation subject patriotic disregard local selfish claims unreasonable reckless welfare entire country present laws articles subject duty many way compete manufactures many hardly worth attention subjects revenue considerable reduction made aggregate adding free list taxation luxuries presents features hardship necessaries life used consumed people duty upon adds cost living every home greatly cheapened radical reduction duties imposed upon raw material used manufactures free importation course important factor effort reduce price necessaries would relieve increased cost caused tariff material manufactured product thus cheapened part tariff laid upon product compensation manufacturers present price raw material could accordingly modified reduction free importation would serve besides largely reduce revenue apparent change injurious effect upon manufacturers contrary would appear give better chance foreign markets manufacturers countries cheapen wares free material thus people might opportunity extending sales beyond limits home consumption saving depression interruption business loss caused glutted domestic market affording employees certain steady labor resulting quiet contentment question thus imperatively presented solution approached spirit higher partisanship considered light regard patriotic duty characterize action intrusted weal confiding people obligation declared party policy principle wanting urge prompt effective action great political parties represented government repeated authoritative declarations condemned condition laws permit collection people unnecessary revenue solemn manner promised correction neither citizens partisans countrymen mood condone deliberate violation pledges progress toward wise conclusion improved dwelling upon theories protection free trade savors much bandying epithets condition confronts us theory relief condition may involve slight reduction advantages award home productions entire withdrawal advantages contemplated question free trade absolutely irrelevant persistent claim made certain quarters efforts relieve people unjust unnecessary taxation schemes free traders mischievous far removed consideration public good simple plain duty owe people reduce taxation necessary expenses economical operation government restore business country money hold treasury perversion governmental powers things done safety industries without danger opportunity remunerative labor workingmen need benefit people cheapening means subsistence increasing measure comforts constitution provides president shall time time give congress information state union custom executive compliance provision annually exhibit congress opening session general condition country detail particularity operations different executive departments would especially agreeable follow course present time call attention valuable accomplishments departments last fiscal year much impressed paramount importance subject communication thus far devoted shall forego addition topic urge upon immediate consideration state union shown present condition treasury general fiscal situation upon every element safety prosperity depends reports heads departments submitted contain full explicit information touching transaction business intrusted recommendations relating legislation public interest deem advisable ask reports recommendations deliberate examination action legislative branch government subjects embraced departmental reports demanding legislative consideration glad submit however earnestly presented previous messages beg leave repeat prior recommendations law makes provision report department state brief history transactions important department together matters may hereafter deemed essential commend attention congress may furnish occasion future communication
confront threshold legislative duty condition national finance imperatively demand immediate careful consideration amount money annually exact operation present law industry necessity people largely exceed sum necessary meet expense government consider theory institution guarantee every citizen full enjoyment fruit industry enterprise deduction may share toward careful economical maintenance government protect plain exaction indefensible extortion culpable betrayal american fairness justice wrong inflict upon bear burden national taxation like wrong multiplies brood evil consequence public treasury exist conduit convey people tribute legitimate object expenditure become hoard place money needlessly withdraw trade people use thus crippling national energy suspend country development prevent investment productive enterprise threaten financial disturbance invite scheme public plunder condition treasury altogether new late submit people representative congress alone apply remedy yet situation still continue aggravated incident ever presage financial convulsion widespread disaster neglect situation danger palpably imminent apparent exist none less certainly await unforeseen unexpected occasion suddenly precipitate upon u 30th day june 1885 excess revenue public expenditures comply annual requirement act year end june 30 1886 excess amount year end june 30 1887 reach sum annual contribution sink fund three year specify amount aggregate deduct surplus state make call purpose outstanding 3 per cent bond government six month prior june 30 1887 surplus revenue grow large repeated accumulation fear withdrawal great sum money need people would affect business country sum surplus applied payment principal interest 3 per cent bond still outstanding payable option government precarious condition financial affair among people still need relief immediately 30th day june 1887 remainder 3 per cent bond outstanding amount principal interest sum call apply contribution current fiscal year notwithstanding operation treasury department representation distress business circle continue increase absolute peril seem hand circumstance contribution sinking fund current fiscal year complete expenditure purchase government bond yet due bear 4 per cent interest premium pay thereon average 24 per cent former 8 per cent latter addition interest accrue current year upon outstanding bond indebtedness government extent anticipate bank select depository public money permit somewhat increase deposit expedient thus employ release people money lie idle treasury serve avert immediate danger surplus revenue continue accumulate excess present year amount 1st day december estimate reach sum 30th june next date expect sum add prior accumulation swell surplus treasury seem assurance withdrawal use people circulate medium business community may near future subject distress quite lately produce function national treasury simple best condition would reach believe entire disconnection private business interest yet perversion purpose idly hold money uselessly subtract channel trade seem reason claim legitimate mean devised government restore emergency without waste extravagance money place among people emergency arise exists clear undoubted executive power relief heretofore redemption 3 per cent bond payable option government afford mean disbursement excess revenue bond retired bond outstanding payment right insist upon contribution sinking fund furnish occasion expenditure purchase bond already make current year outlet direction present state legislation pretense exist executive power restore time part surplus revenue people expenditure consist supposition secretary treasury may enter market purchase bond government yet due rate premium agree upon provision law power could derive found appropriation bill pass number year ago subject suspicion intend temporary limited application instead confer continue discretion authority condition ought exist would justify grant power single official upon judgment necessity withhold release business people unusual manner money hold treasury thus affect financial situation country deem wise lodge secretary treasury authority present juncture purchase bond plainly vest provide far possible check limitation define official right discretion time relieve undue responsibility consider question purchase bond mean restore circulation surplus money accumulate treasury borne mind premium must course pay upon purchase may large part bond hold investment purchase price combination among holder willing sell may unreasonably enhance cost bond government suggest present bonded debt might refund less rate interest difference old new security pay cash thus find use surplus treasury success plan apparent must depend upon volition holder present bond entirely certain inducement must offer would result financial benefit government purchase bond latter proposition would reduce principal debt actual payment instead extend proposition deposit money hold government bank throughout country use people seem exceedingly objectionable principle establish close relationship operation government treasury business country extensive commingle money thus foster unnatural reliance private business upon public fund scheme adopt do temporary expedient meet urgent necessity legislative executive effort generally opposite direction tendency divorce much fast safely do treasury department private enterprise course expect unnecessary extravagant appropriation make purpose avoid accumulation excess revenue expenditure besides demoralization conception public duty entail stimulate habit reckless improvidence least consistent mission people high beneficent purpose government deem duty thus bring knowledge countryman well attention representative charge responsibility legislative relief gravity financial situation failure congress heretofore provide danger quite evident nature difficulty must necessarily produce caused condition financial distress apprehension since last adjournment tax utmost authority expedient within executive control appear exhaust disaster result continue inaction congress responsibility must rest belongs though situation thus far consider fraught danger fully realize though present feature wrong people well peril country result grow perfectly palpable apparent constantly reproduce alarm circumstance congest national treasury deplete monetary condition business country need hardly state present situation demand remedy save like predicament future removal scheme taxation mean needless surplus take people put public treasury consist tariff duty levy upon importation abroad tax levy upon consumption tobacco spirituous malt liquor must concede none thing subject taxation strictly speak necessary appear complaint taxation consumer article seem nothing well able bear burden without hardship portion people present tariff law vicious inequitable illogical source unnecessary taxation ought revise amend law primary plain effect raise price consumer article import subject duty precisely sum pay duty thus amount duty measure tax pay purchase use import article many thing however raise manufactured country duty levy upon foreign good product call protection home manufacture render possible people manufacturer make taxed article sell price equal demand import good pay custom duty happen comparatively use import article million people never use never saw foreign product purchase use thing kind make country pay therefor nearly quite enhanced price duty add import article buy import pay duty charge thereon public treasury great majority citizen buy domestic article class pay sum least approximately equal duty home manufacturer reference operation tariff law make way instruction order may constantly remind manner impose burden upon consume domestic product well consume import article thus create tax upon people propose entirely relieve country taxation must extensively continue source government income readjustment tariff interest american labor engage manufacture carefully consider well preservation manufacturer may call protection name relief hardship danger present tariff law devise especial precaution imperil existence manufacturing interest existence mean condition without regard public welfare national exigency must always insure realization immense profit instead moderately profitable return volume diversity national activity increase new recruit add desire continuation advantage conceive present system tariff taxation directly afford stubbornly effort reform present condition resist thus engage hardly complain suspicion entertain certain extent exists organize combination along line maintain advantage midst centennial celebration become pride rejoice american skill ingenuity american energy enterprise wonderful natural advantage resource developed century national growth yet attempt make justify scheme permit tax laid upon every consumer land benefit manufacturer quite beyond reasonable demand governmental regard suit purpose advocacy call manufacture infant industry still need high great degree favor foster care wrung federal legislation also say increase price domestic manufacture result present tariff necessary order high wage may pay workingman employed manufactory pay call pauper labor europe acknowledge force argument involve welfare liberal compensation labor people labor honorable eye every american citizen lie foundation development progress entitle without affectation hypocrisy utmost regard standard laborer life measure country less favored entitle full share advantage last census make appear population engage kind industry employ agriculture professional personal service domestic servant laborer employ trade transportation class employed manufacturing mining present purpose however last number give considerably reduce without attempt enumerate concede deduct include carpenter joiner milliner dressmaker seamstress blacksmiths tailor tailoresses mason butcher baker plasterer engage manufacture agricultural implement amount aggregate leaving person employ manufacture industry claim benefited high tariff appeal make save employment maintain wage resist change disposition answer suggestion allegation minority among labor therefore forego advantage interest low price majority compensation may affect operation tariff law time scrupulously keep view yet slight reflection overlook fact consumer rest want family supply earnings price necessary life well amount wage regulate measure welfare comfort reduction taxation demand measure necessitate justify either loss employment workingman lessen wage profit still remain manufacturer necessary readjustment furnish excuse sacrifice interest employee either opportunity work diminution compensation worker manufacture fail understand high tariff claim necessary allow payment remunerative wage certainly result large increase price nearly sort manufacture almost countless form need use family receives desk employer wage perhaps reach home oblige purchase family use article embrace labor return payment increase price tariff permit compensation many day toil farmer agriculturist manufacture nothing pay increase price tariff impose upon every agricultural implement upon wear upon us own except increase flock herd thing husbandry produce soil invite aid maintain present situation tell high duty import wool necessary benefit sheep shear order price wool may increase course reminded farmer sheep scheme oblige purchase clothe woolen good pay tribute well manufacturer merchant mention make fact sheep owner household must wear clothing use article manufacture wool sell tariff price thus consumer must return share increased price tradesman think may fairly assume large proportion sheep own farmer throughout country find small flock number fifty duty grade import wool sheep yield 10 cent pound value 30 cent less 12 cent value 30 cent liberal estimate 6 pound allow fleece duty thereon would 60 72 cent may take utmost enhancement price farmer reason duty eighteen dollar would thus represent increased price wool sheep 36 wool fifty sheep present value addition would amount price upon sale farmer receive less tariff profit wool leave hand charge precisely sum change adhere reach consumer manufacture cloth good material use cost increase extent farmer tariff profit sum add benefit manufacturer operation tariff law meantime day arrive farmer find necessary purchase woolen good material clothe family winter face tradesman purpose discovers oblige return way increase price tariff profit wool sell perhaps lie manufacture form must add considerable sum thereto meet increase cost cause tariff duty manufacture thus end aroused fact pay upon moderate purchase result tariff scheme sell wool seem profitable increase price sufficient sweep away tariff profit receive upon wool produce sell number farmer engage wool raise compare farmer country small proportion bear population consider make apparent case large part sheep benefit present tariff wool illusory must concede increase cost living cause tariff becomes burden upon moderate mean poor employ unemployed sick well young old constitutes tax relentless grasp fasten upon clothing every man woman child land reason suggest removal reduction duty include revision tariff law speak increase cost consumer home manufacture result duty lay upon import article description fact ever look competition among domestic producer sometimes effect keep price product high limit allow duty notorious competition often strangle combination quite prevalent time frequently call trust object regulation supply price commodity make sell member combination people hardly hope consideration operation selfish scheme however absence combination healthy free competition reduces price particular dutiable article home production limit might otherwise reach tariff law reduce price manufacture continue thrive entirely evident one thing discover carefully scrutinize effort reduce taxation necessity combination maintain price commodity tariff point furnishes proof someone willing accept low price commodity price remunerative low price produce competition prove thing thus either condition exist case would seem present easy reduction taxation consideration present touch tariff law intend enforce earnest recommendation surplus revenue government prevent reduction custom duty time emphasize suggestion accomplish purpose may discharge double duty people grant measure relief tariff taxation quarter need source fairly justly accord presentation make consideration degree fairness regard evidence unfriendliness toward manufacture interest lack appreciation value importance interest constitute lead substantial element national greatness furnish proud proof country progress emergency press upon u manufacturer ask surrender something public good avert disaster patriotism well grateful recognition advantage already afford lead willing cooperation demand make shall forego benefit governmental regard fail admonish duty well enlighten safety remind fact financial panic collapse present condition tend afford great shelter protection manufacture important enterprise opportunity safe careful deliberate reform offer none u unmindful time abuse irritated people heedless resist timely reasonable relief may insist upon radical sweeping rectification wrong difficulty attend wise fair revision tariff law underestimated require part congress great labor care especially broad national contemplation subject patriotic disregard local selfish claim unreasonable reckless welfare entire country present law article subject duty many way compete manufacture many hardly worth attention subject revenue considerable reduction make aggregate add free list taxation luxuries present feature hardship necessary life use consumed people duty upon add cost living every home greatly cheapen radical reduction duty impose upon raw material use manufacture free importation course important factor effort reduce price necessary would relieve increase cost cause tariff material manufacture product thus cheapen part tariff lay upon product compensation manufacturer present price raw material could accordingly modify reduction free importation would serve besides largely reduce revenue apparent change injurious effect upon manufacturer contrary would appear give good chance foreign market manufacturer country cheapen ware free material thus people might opportunity extend sale beyond limit home consumption save depression interruption business loss cause glutted domestic market afford employee certain steady labor result quiet contentment question thus imperatively presented solution approach spirit higher partisanship consider light regard patriotic duty characterize action intrust weal confide people obligation declare party policy principle want urge prompt effective action great political party represent government repeat authoritative declaration condemn condition law permit collection people unnecessary revenue solemn manner promise correction neither citizen partisans countryman mood condone deliberate violation pledge progress toward wise conclusion improve dwell upon theory protection free trade savor much bandy epithet condition confronts u theory relief condition may involve slight reduction advantage award home production entire withdrawal advantage contemplate question free trade absolutely irrelevant persistent claim make certain quarter effort relieve people unjust unnecessary taxation scheme free trader mischievous far removed consideration public good simple plain duty owe people reduce taxation necessary expense economical operation government restore business country money hold treasury perversion governmental power thing do safety industry without danger opportunity remunerative labor workingman need benefit people cheapen mean subsistence increase measure comfort constitution provide president shall time time give congress information state union custom executive compliance provision annually exhibit congress open session general condition country detail particularity operation different executive department would especially agreeable follow course present time call attention valuable accomplishment department last fiscal year much impress paramount importance subject communication thus far devoted shall forego addition topic urge upon immediate consideration state union show present condition treasury general fiscal situation upon every element safety prosperity depend report head department submit contain full explicit information touch transaction business intrust recommendation relate legislation public interest deem advisable ask report recommendation deliberate examination action legislative branch government subject embrace departmental report demand legislative consideration glad submit however earnestly present previous message beg leave repeat prior recommendation law make provision report department state brief history transaction important department together matter may hereafter deem essential commend attention congress may furnish occasion future communication