The Cleveland Era [10]
in their own neighborhood. Thus as the bill becomes more objectionable it secures more support." The truth of this last assertion Congress immediately proved by passing the bill over the President's veto. Senator Hoar, who defended the bill, has admitted that "a large number of the members of the House who voted for it lost their seats" and that in his opinion the affair "cost the Republican party its majority in the House of Representatives."
Legislation regarding the tariff was, however, the event of Arthur's administration which had the deepest effect upon the political situation. Both national parties were reluctant to face the issue, but the pressure of conditions became too strong for them. Revenue arrangements originally planned for war needs were still amassing funds in the Treasury vaults which were now far beyond the needs of the Government, and were at the same time deranging commerce and industry. In times of war, the Treasury served as a financial conduit; peace had now made it a catch basin whose excess accumulations embarrassed the Treasury and at the same time, caused the business world to suffer from a scarcity of currency. In his annual message on December 6, 1881, President Arthur cautiously observed that it seemed to him "that the time has arrived when the people may justly demand some relief from the present onerous burden." In his message of December 4, 1882, he was much more emphatic. Calling attention to the fact that the annual surplus had increased to more than $145,000,000, he observed that "either the surplus must lie idle in the Treasury or the Government will be forced to buy at market rates its bonds not then redeemable, and which under such circumstances cannot fail to command an enormous premium, or the swollen revenues will be devoted to extravagant expenditures, which, as experience has taught, is ever the bane of an overflowing treasury."
The congressional agents of the protected industries were confronted by an exacting situation. The country was at peace but it was still burdened by war taxes, although the Government did not need the accumulating revenue and was actually embarrassed by its excess. The President had already made himself the spokesman of the popular demand for a substantial reduction of taxes. Such a combination of forces in favor of lightening the popular burden might seem to be constitutionally irresistible, but by adroit maneuvering the congressional supporters of protection managed to have the war rates generally maintained and, in some cases, even increased. The case is a typical example of the way in which advantage of strategic position in a governmental system can prevail against mere numbers.
By the Act of May 15, 1882, a tariff commission was created to examine the industrial situation and make recommendations as to rates of duty. The President appointed men who stood high in the commercial world and who were strongly attached to the protective system. They applied themselves to their task with such energy that by December 4, 1882, they had produced a voluminous report with suggested amendments to customs laws.
But the advocates of high protection in the House were not satisfied; they opposed the recommendations of the report and urged that the best and quickest way to reduce taxation was by abolishing or reducing items on the internal revenue list. This policy not only commanded support on the Republican side, but also received the aid of a Democratic faction which avowed protectionist principles and claimed party sanction for them. These political elements in the House were strong enough to prevent action on the customs tariff, but a bill was passed reducing some of the internal revenue taxes. This action seemed likely to prevent tariff revision at least during that session. Formidable obstacles, both constitutional and parliamentary, stood in the way of action, but they were surmounted by ingenious management.
The Constitution provides that all revenue bills shall originate in the House of Representatives, but the Senate has the right to propose
Legislation regarding the tariff was, however, the event of Arthur's administration which had the deepest effect upon the political situation. Both national parties were reluctant to face the issue, but the pressure of conditions became too strong for them. Revenue arrangements originally planned for war needs were still amassing funds in the Treasury vaults which were now far beyond the needs of the Government, and were at the same time deranging commerce and industry. In times of war, the Treasury served as a financial conduit; peace had now made it a catch basin whose excess accumulations embarrassed the Treasury and at the same time, caused the business world to suffer from a scarcity of currency. In his annual message on December 6, 1881, President Arthur cautiously observed that it seemed to him "that the time has arrived when the people may justly demand some relief from the present onerous burden." In his message of December 4, 1882, he was much more emphatic. Calling attention to the fact that the annual surplus had increased to more than $145,000,000, he observed that "either the surplus must lie idle in the Treasury or the Government will be forced to buy at market rates its bonds not then redeemable, and which under such circumstances cannot fail to command an enormous premium, or the swollen revenues will be devoted to extravagant expenditures, which, as experience has taught, is ever the bane of an overflowing treasury."
The congressional agents of the protected industries were confronted by an exacting situation. The country was at peace but it was still burdened by war taxes, although the Government did not need the accumulating revenue and was actually embarrassed by its excess. The President had already made himself the spokesman of the popular demand for a substantial reduction of taxes. Such a combination of forces in favor of lightening the popular burden might seem to be constitutionally irresistible, but by adroit maneuvering the congressional supporters of protection managed to have the war rates generally maintained and, in some cases, even increased. The case is a typical example of the way in which advantage of strategic position in a governmental system can prevail against mere numbers.
By the Act of May 15, 1882, a tariff commission was created to examine the industrial situation and make recommendations as to rates of duty. The President appointed men who stood high in the commercial world and who were strongly attached to the protective system. They applied themselves to their task with such energy that by December 4, 1882, they had produced a voluminous report with suggested amendments to customs laws.
But the advocates of high protection in the House were not satisfied; they opposed the recommendations of the report and urged that the best and quickest way to reduce taxation was by abolishing or reducing items on the internal revenue list. This policy not only commanded support on the Republican side, but also received the aid of a Democratic faction which avowed protectionist principles and claimed party sanction for them. These political elements in the House were strong enough to prevent action on the customs tariff, but a bill was passed reducing some of the internal revenue taxes. This action seemed likely to prevent tariff revision at least during that session. Formidable obstacles, both constitutional and parliamentary, stood in the way of action, but they were surmounted by ingenious management.
The Constitution provides that all revenue bills shall originate in the House of Representatives, but the Senate has the right to propose