Mr. HENDERSON. It seems to me strange that the House will wait for the Senate to act upon the tariff bill. I have been here for 4 or 5 years and I have been called on every year to vote for an increase of excise duties to provide the needed revenue for the Government and immediately after voting that increase have been called upon by the distinguished Senfrom Maine and his committee to vote for advanced tariff rates to protect the manufacturer or producer against the consequences of such increase and save him from inevitable ruine us competition, and I have generally obeyed the summons and so voted. At the last session of Congress, however, a moment of relief came to my mind. The war was over. Gold had declined so as to inspire hopes of early resumption. The Government expenditures, j.during the war had reached an almost fabuloussum, began now to assume more familiar proportions. The moment had arrived, in my judgment, to reduce taxation in every form. Business had groaned under its burdens for 4 years. The only thing that had been left to business was hope. The crushing weight of taxation had been borne by a patriotic people in the midst of a great war because it was a duty, and they did not ask to put aside any duty. But so soon as the terrible necessity should o: away they had a right to expect and did expect relief. They expected the crushing, duplicated bur dens of internal taxation to be removed, as far as could be done consistent with the public faith and the ordinary operations of the government under a most prudent and economical administration of its several depts. " The House at the last session partially responded to that demand. The Senate promptly concurred in the bill to reduce excise duties. It was a great measure of relief even as it passed, but it should have gone further in the same direction. The taxes should have been further reduced. We do not need to extort $300,000,000 annually from the opPressed do The internalrevenue law, even with this reduction, yields more money than is needed, unless, we have resolved to pay offimmediately the public debt. But when this reduction had been made I had supposed that the exorbitant duties made necessary, as I had been told, by the collection of internal taxes could be reduced also; at least I did not suppose that the arguments enforced against me for 4 years would now in a moment be reversed, and that reduced excises must be followed by higher customs duties. But such was the fact. The tariff bill sent to us the last session proposed an advance on previous rates of not less than 40 to 60%..The Senate postponed its consideration until this session, and we are now considering a measure increasing existing rates, not 50%., but from 20 to 30%. While we thus debate the measure ere, and day by day add to the rates proosed even by the committee, because of the local demands here and there coal in Maryland, hoes in Connecticut, zinc in NewJersey, asphaltum and Albertite in WestVirginia, cop per and salt in Michigan, marble in Vermont, and now hemp in Kentucky and Missouri, (and this last is perhaps the most reasonable demand yet made) we but add, in my judgment, aggravation to the evils under which the country complains. The evil, it occurs to me, is in flated prices, the cost of living. The business of the country is, as it were, on stilts, and therefore unstable and constantly struggling to Preserve its equilibrium. This measure proposes to lengthen the stilts, to increase prices, to add to the expenses of the operative, making it necessary for increased wages without benefit to the laborer. The true remedy seems to be in another direction: to reduce internal taxes would seem to be the proper remedy. But now when I ask the postponement of this measure, to consider 1st domestic duties and then adjust the tariff accordingly, as we have heretofore done, the Senfrom Qhio [Mr. SHERMAN] tells me that the House is waiting for us to pass this, the tariff law, before they act on the question that naturally should precede our action. Mr. President, I may not again trouble the Senate on this tariff measure, and while on my feet I wish to suggest to Senators having charge of it that the country will ask for what purpose it is Pressed forward. Is it a revenue measure, as intimated by the Senfrom Ohio, or is it intended, as intimated by some others, to inaugurate a policy of total exclusion of all traffic with foreign nations? If it be designed as a revenue measure, it may be well to inquire, 1st, what amount of revenue we need, and 2nd, whether the pending measure is better calculated to accomplish the end than the existing law. The Senfrom Ohio [Mr. SHERMAN] says we must have during, the Present year $140,000,000 of gold to meetinterest on the public debt, and other accruing demands of about 16 millions, that need to be paid in gold. We all know the amount of our public debt, and it is easy to ascertain the amount of interest required to be paid from year to year. The amount cannot exceed from 120 to 130 millions in gold at the outside say 125 millions. The Senator informed us that the Present law would not furnish the needed amount. We may best judge of the future by examining the past. The Senator told us that the duties would fall off, but if he gave o reason for the statement. I am not aware of it. For the fiscal year ending June 30, 1866, the Present tariff yielded a revenue of $179,046, 651 58, which is $39,000,000 more, according to his own estimate, than will be needed by the Government. For the 1st 3 months of the Present fiscal year, ending September 80; 1866, the tariff yielded $50, 843, 744 24. Should the same average yield continue the amount received for the year will be upward of 23 millions. But lest it be said that this argument is unfair I Present the receipts for the 1st 5 months of the fiscal year ending December 1, 1866, from which it will appear that the tariffyielded $78, 848, 774.26. It will be seen that proportionate receipts for the remaining 7 months will give for the year $189, 225,058 20. But if the Senator says that the laws of trade are such as to prevent a proportionate increase for the remaining 7 months, I answer that the 1st 6 months of the last fiscal year, under the Present law, the customs receipts were $86, 225, 921 42, and for the remaining 6 months correspondin with the time yet to elapse of the Present fiscal year our receipts were $92, 820, 730 16, giving an advantage to the latter half of the fiscal year of so, 500,000. I therefore conclude that if revenue be the object, the Present lariff will yield from 40 to 50 millions more than is necessary for all the demands of the government. It is certain that the Present, law will accomplish all that the Senator desires. He founded his argument in favor of the pro: posed measure upon the supposition that it will ield a larger revenue. I now ask him, if such is to be the result, whether that fact of itself is not a sufficient o to the bill. He only wants gold enough to pay the interest on the national debt. To be consistent he must oppose any law that pays more, for his object, mine, is to relieve the country from taxation. Others, however, may say (the Senfrom Ohio does not) that the purpose is to obtain as large a revenue upon a smaller aggre gate importation of goods. This is p. what may be termed the principle of protection. Clearly this bill is not a revenue measure; it must be put on other ounds. From 1842 to 1846 a tariff of 30 ree peer cent. was supposed to be almost pro: hibitive in its character, and was supplanted by the lower tariff of 1846, which, with an average duty of 24 and a half%, continued for ten years, bringing unexampled prosperity to every dept of business, no less to the manufacturer than to the agriculturist. May 3, 1857, a further reduction of aggregate duties took place; and for 4 years, under a tariff of 20 and a quarter%., we enjoyed the highest degree of prosperity. During the year 1860 the cotton manufacturers of this country exported nearly $10,000,000 worth of cotton fabrics; in 1861 they exported nearly $7,000,000, while in 1866 they exported barely $1,000,000 worth. In the 2 years of 1860 and 1861 the copper and brass manufacturers exported near $4,000,000 worth, and in 1866 only $110, 208. In the year 1860 the manufacturers of tobacco exported $3, 372,074 worth of tobacco; in 1866 they exported $1, 794, 688. In 1860 the manufac. turers of wood exported $2, 703,095 worth of wares, and in 1866 $720, 625. In reference to the effect on other industrial interests I submit an extract from the very able report of Mr. Wells, the special comrRev: “Ten years o the American manufacturer supplied, to a considerable extent, fur hats to the Mexican. Cuban, and South American markets; today he supplies comparatively none. Why? Because the duty on foreign fur, the raw material of his manufacture, has prevented the American from competing with the foreign producer. 30 years ago the manufacture of broadcloth constituted from 50 to 60%. of the whole woolen, business of the U.S.; now, it is not probably in excessof 5%. Why?, BecauseAmerican legislation has not permitted the importation of wools, and the American agriculturists have brporaoddculocethd nothing to take their place, and never will until the successful establishment of the broadcloth industry in the U.S. has created a constant home demand for broadcloth’ wools.” As to the effect of this new order of protective policy upon the commercial interests of the country I submit the following extract from the same report: “A reference to the official returns shows the amount of American registered tonnage engaged in foreign trade in 1865and 1866 to have been but onemillion and a half tons, (1, 492, 924.) as compared wo 2 and a half million tons. in 1859 and 1850;which, allowing for the differencebetween the old and new measurements, indicates a in decrease of over 50%. In nage 1853the ton of the U.S. wasabout 15%. in excess of that of GreatBritain, while at the Present time it is estimated at 33%. less. "An examination of the official returns of the coast wise and inland commerce, allowance being madefor the difference of measurement, alsoshows to decrease in this branch of about 12%. It should, however, be stated, that a part of this reduction is probablydue to the substitution ofing vessels. steamersfor sail Out of 191 American vesselsengaged in the Brazilian or South American trade in 186land 1862but 30 are reported as remainicf:; while thenumber of foreign vesselsengaged in the sume trade has during the same time increasednearly 3 fold.” From these facts it might be inferred that the manufacturers themselves would cease to clamor for additional protection. If they pros pered under a tariff of 20%, it may well be asked why they complain with the Pres. ent tariff, which gives them an average protection of 50%. in coin. In this there is nothing strange. It might be asked why the inebriate, whose frame has been shattered by draughts from the intoxicating bowl, yet thirsts for that which has well nigh destroyed him. Simply because he gets temporary relief. He who has a large stock of manufactured goods, or even of raw materials, on hand is always benefited by the imposition of increased duties. The yard of woolen goods now worth a dollar, with an increased duty of 50% is of course worth $1 50. Unless this be the case the whole idea of protection is utterly false and chimerical. seeks its level. The commercial and trading world is like the spider's web: touch it at one point and it trembles along the whole line. You may temporarily legislate money from one man's pocket into another's;, but as organic laws struggle against dissolution and death, so the laws of business intercourse struggle against injustice and wrong, which work its destruction. The effect of increased duties, so far as it concerns stocks of goods on hand, is to take from the pockets of the consumer and put it into those of the manufacturer, the importing merchant, and the jobber who may be fortunate enough to hold the articles affected at the moment the law is passed. But in a short time all depts of business and all classes of men begin to adapt themselves to the new order of things. To the extent of the increased tariff there is an increase of. prices. To the extent that the of living are increased the prices of labor must be also increased, otherwise the laborer is fleeced by the operation. As there is no real wealth without labor, and as it is the essential element in the development of all material results in man's progress, whatever affects the price of labor affects also the value of every article which labor produces. If the prices of clothing are increased the wages of the operative must be advanced in the same ratio, that he may clothe himself and his family. If the farmer pays more for his axes, hoes, and trace chains, his plows, his mowers and reapers, he expects to be reim bursed in the sale of his agricultural products. If this be not so, than all tariff laws are but legalized plunder. Indeed, those who ask for protection expect its realization in enhanced prices, and insist that the increase will be felt in every dept of industry. If this argument be correct, it will be seen that what is called protection soon loses its force beyond the temporary benefits that I have already named. There is no general result except an enhancement of prices. It is apparent, then, that the 1st great object to be attained is uniformity in legislation. You cannot change the law of taxation without benefiting some body, and to that very extent somebody else is injured. Change deranges the laws of trade, produces failures, destroys public confidence, and more than all decreases the citizen's respect for his Government. Not only then, the general interests of the public, but the higher claims of justice and fair dealing to each individual demand uniformity in our legislation on these delicate questions of taxation. Another objection to an increase of the Present exorbitant rates consists in the fact that when duties are so high, the slightest deviation from a rule of perfect equality is well calcu lated to prostrate one interest entirely, thereby destroying perhaps an important element of national wealth and individual industry while another is unduly stimulated. In this way one section of our country may even unwitting! be made to prosper while another is o Even our errors may work ruin before the cause of decay is developed and the remedy can be applied. Another objection exists which the honest manufacturer will recognize at once. It applies to all unreasonable taxes, whether excise or impost. We now have an excise tax of 2 dollars per gallon on whisky. It costs from 20 to 30 cents per gallon to manufacture it. Its chief cost is found in the tax. The inducements to fraud are so great that our citizens, like the Irish people, begin to burrow But business, like water, soon. in the earth to make it. To such an extent is it now produced in fraud of the revenue that it can be and is purchased, I learn, in open market in NewYork city at from $160 to $180 per gallon with the Government brand of “tax aid.” This is not exceptional, but the rule. how can the honest producer live? It is stated by the gentleman whom we appointed to invest igate matters connected with this subject that propositions are made to importers to lay down stocks of dry goods in NewYork at 20%. on the prime cost in Europe. With an impost tax of 100%. he who buys of the smuggler instead of the honest importer $100,000 worth of goods makes $80,000 clear by the transaction. These temptations will not be resisted. The country will be filled with non-tax paying commodities, commercial centers will reek with fraud and corruption, and the honest merchant and the tax paying manufacturer has to choose between loss of business and loss of integrity. No doubt many will consent to lose their business and sacrifice capital invested. These will be conscientious men whom self interest cannot tempt. But are all men beyond its reach? Unfortunately our legislation cannot yet be based on any such idea. But, Mr. President, my chief objection to this measure is that it induces the necessity for continuing our Present rates of internal taxation. It is evidently framed for that purpose. To decrease the excise taxes after the passage of this measure will in many respects aggravate Present evils. To Prescribe for a disease the physician must understand its character. To give palliatives may extend Present relief, too often to be followed by increased violence of paint. It is best to remove the cause of disease. When that is done the patient necessa rily recovers. The wise statesman must adopt the same rule. When national complaints are brought before him he should examine care fully the symptoms in order to ascertain their origin and cause. He wilf not indulge in tem porary expedients, but proceed at once to strike at the root of the disease. What are the complaints in this case? Our manufacturers tell us that they are opPressed by the excise taxes added to the high price of American labor to such an extent that the cheaper labor of Europe can undersell them ine us own markets, even after paying our Present high rates of duty. In other words, the European manufacturer can sell his products for 1/2 of the cost of the American product. In the 1st place is this so? If it be so, what is the cause of it? The Present price of gold in our market furmishes no solution of this difficulty. If gold were worth 200 instead of 134 I could readily perceive that the price of the American manufacture should be nominally double that of o the Euro at their respective places of production. but it should be remembered that when the American importer comes to pay for the foreign article he must pay for it in gold or its equivalent. Hence if gold is worth 200 in currency, he must use 2 dollars for one in the payment. That it seems would put the foreign and domestic manufacturer upon an equal footing. It is true the one paid for his mate rials and labor in gold and hence used only 1/2 of the amount used by the other, but the intrinsic value of each should be the same. If it be said that the European operative receives but a dollar per day, while the American operative receives two, it is to be Presumed that the one dollar purchases as much food and raiment for the European mechanic as the 2 dollars purchase for the American me chanic. But as gold is only worth 34%. premium, labor and materials entering into the American"fabric should cost the American manufacturer only 34%. more than they cost the European manufacturer. If they cost him more than 34%. advance there are causes for it peculiar to our own country, causes which do not operate in Europe. To the extent of that increased o cost, over 34%. on the European cost, the American producer has a right to ask for protection until that state of things shall cease to exist. Now, we know that the American manufacturer does pay more than 34%. advance upon European prices, and hence he has heretofore demanded, and not only demanded but received, a tariff protection of 50%. in coin, which would make a currency protection of about 67%., which being added to The 34%, makes about 100%., which he can afford to pay in currency for material and labor more than the European manufacturer pays, and yet success fully compete with him in the sale of his prod ucts. With this view of the subject it will be seen that every advance in the price of gold operates as a protection to the American manufacturer. because it advances the rate of exchange, with which the foreign payment is to be met. Every decline, therefore, in the price of gold is tantamount to a reduction prorata of the tariff. Hence, with a vacillating gold market, the manufacturer cannot thrive; he wants permanency and stability in the stand arl of value. The American importer may take advantage of a heavy decline in the gold market, and purchase large stocks of goods with the certainty of a future advance of gold. Not so with the manufacturer, and especially with him who uses American material. Neither the raw material nor labor invariably follow the fluetuations of gold. Gold is sensitive; it moves like quicksilver in the midst of more sluggish metals. It should cease to be a commodity of purchase and sale, but should again take its place as the standard of value. If we intend to maintain commercial relations with the civilized nations of the world we must have their standard of val” The old adage again enforces its truth upon us, at “being in Rome we must yield to the customs of Rome.” We cannot compel other nations to take our paper money, and so long as we retain it as the standard of value among ourselves we are setting up a new policy in the commercial world, and have constantly to struggle against established laws of trade. So long as we maintain commercial relations with them gold retains its value here, subject to local influences. It will continue to be bought and sold in our markets. Its fluctuations may and perhaps will depend upon our own legislation, upon our errors in polities and in business. put it down. Its fluctuations, cannot injure people abroad, but they do injure ourselves. The disease, I take it, then, consists, partially anyhow, in the fact that there is a difference in the nominal value of our paper money and gold. Until that difference is removed it is idle to talk about protecting American industry. such a thing might be if our ports were closed against the world; but without it per feet protection cannot exist. No possible rate of duty will be sufficient. Our bank note circulation at Present, including compound interest notes and excluding certificates of deposit, amounts today to more than 900 million dollars. The entire trade and commercial business of Great Brit ain, perhaps double our own, are conducted with less than 190 million dollars of paper money. At no period of our own history had bank issues in the U.S. previous to 1860exceeded $215,000,000. The business of 1859 and 1860, 2 of the most prosperous years, in American history, was safely and expeditiously carried on with a paper circulation of less than 2eight millions. To me it is not at all strange that, with an inflated currency of at least 3 times as much as the country needs, all species of property maintain their Present exorbitant nominal values. Gold is the cheapest article in the market. It is made cheap by the desperate exertions of our Government to commence the payment of the public debt. Everybody talks of speedy resumption; the Government extorts A mere rumor will put it up and from an opPressed industry at least $500,000,000 annually, not because it is needed, but with the apparent view of hoarding coin sufficient to resume specie payments by a simple proclamation of i. fact. Gold, with its son sitive nature, feels the general inclination in that direction, and seeks to take its proper piace in advance of other articles. With the Present policy enforced by legislation, however, gold will not only be sensitive, but sensible enough to take a different position. The thing now most needed is to relieve industry. The heavy hand of the tax gatherer should be removed from the productive industries of the country. The manufacturer cannot extend his business, because he cannot afford to buy the machinery necessary to do so. His profits largely go into the Federal Treasury. If he has any remaining after the payment of excise duties he hesitates to purchase machinery at the Present exorbitant rates for fear that his neighbor may in a few years purchase similar machinery for half the money. The machinist cannot furnish machinery for any less price, because of the duties on iron and steel and the high price of skilled labor. The farmer cannot afford to sell his products any cheaper, because of the high prices entering into their growth and transportation to market, and because, further, the tax gatherer stands ready to receive the Government’s share of his income. The proposition now under consideration instead of relieving industry adds to its bur dens. The evil, I have said, is inflation. whatever tends to continue this state of affairs or to make inflation a necessary condition of trade in the future necessarily aggravates the evil. If the Present prices are maintained it requires an inflated currency to do the business of the country. If prices are reduced a less volume of currency is needed. As that volume is less ened, so we advance to the realization of specie payments. Until that volume is reduced specie payment is a myth, a thing to be talked of by visionaries, but not by prac tical men. The immediate as well as permanent effect of the passage of this bill will be to increase prices, making a continuance of inflated currency an absolute necessity. After its adoption and the consequent inflation of prices gold will rise. But men will not cease to hope still for specie payments. Having mistaken the true remedy is no reason the patient should not be further dosed. The same old treatment will be resorted to–San grado's bleeding and hot water. We shall be urged still to continue the Present rates of internal taxation for the purpose of paying the public debt, and, thereby sustaining the public credit. In order to force our depreciated Government paper, to parwe must make the Government rich. To make the government rich we must make the people poor. This policy will fail as it has already failed. This bill, I repeat, looks to increased taxation. The people of the U.S. are today the most heavily taxed people on earth. The national debt of GreatBritain is nearly double our own in amount. The value of real and personal property in GreatBritain is nearly twice that of ours. The amount of taxes paid by the English people in 1864–65was $354, 131,000. The amount of taxes paid by the people of the U.S. in 1865–66 was $561,572, 266, cur " rency value. Our people pay annually an average of $11 46 per head in gold, while the people of GreatBritain, with double our wealth and means of payment, pay $10 92. Our true policy, in my judgment, is to post pone the payment of the principal of the public debt until business shall have recovered from the effects of a long and exhausting war; until the cotton and sugar plantations of the South shall be again cultivated, and until our natural laws of progress in population and wealth shall make the payment of the debt comparatively easy. Real and personal property in the U.S. increased in value from 1840 to 1850 64%.; from 1850 to 1860 the increase in value was 129 and 7 10th s%.; from 1860 to 1870, had war not intervened, the same rate of increase would have been near 260%. We may well postpone, for at least ten years yet the payment of a debt which can be fully liquidated in the course of ten or 15 years after we commence the work, without retarding the development of a single interest, and without opPression of a single individual. If we pay. interest of the debt and our people rich we shall maintain our credit and have a fund in the wealth of the oupon which we can at any time check for the payment of our national obligations. If my views be correct on the policy of taxation, it only remains, now to inquire what amount of reevenue will likely be required to meet the expenditures of the Government. Again we must look to the past. The disbursements for the fiscal year ending June 30, 1866, as reported by the SecyTreasury are as follows: For civil service For pensionsof Indians., For War Dept. For Navy Dept For interest on debt. Total. In the items above it will be observed that the expenses of the War Dept constituted largely more than 1/2 the entire disbursements. That Dept cannot now cost more than say $55,000,000 annually. The Army is reduced to about the peace establish ment, and if peace continues we shall have time to look after and cut off extravagance in the administration of every Dept. Let us take the expenditures of the 1st uarter of the Present fiscal year. We were then approaching still nearer the normal condition of things. It embraces the period from June 30 to September 30, 1866: For civil service. $11, 8336 A4 For pensionsof In 11, 787, 97656 for War Dept. 13, 833, 21043 or Navy Dept, 878, 60917 For interest Total. $79, 25893529 If the expenditure of the 3 remaining quarters shall correspond with this, the entire expense for the Present fiscal year, including interest on public debt, will be $317,035, 741 16. With proper economy, this amount may be greatly reduced. Putting the interest on the public debt even at the estimate of the Senfrom Ohio, at $140,000,000, it would leave $177,035, 741 16 to meet the ordinary expenses of the Government. Taking several years preceding the war, the following table will give the ordinary expenses of the Government: 1856. $60, 533, 836 1S57 65,032, 56796 18 72, 291, 11799 1859. 66, 327, 40752 1860. During those years the expenses of the Navy Dept averaged about $13,000,000, and the War Dept about $21,000,000. I believe no one now estimates our ordinary expenses at more than $180,000,000. I am sat isfied that by prudence and economy they ought to be reduced to $150,000,000. But even taking the highest estimates we shall need to meet accruing demands the following sums, namely: For paymentof interest. $140,000,000 in coin. For ordinary expenditures. 180,000,000 in currency. I have already shown that the Present tariff yielded last year $179,046, 651 58, and dur;ing the 1st 5 months of the Present fiscal year it yielded $78, 843, 774 26, which would give an aggregate for the Present fiscal year of over $189,000,000 in coin. But suppose it yields no more than during the last fiscal year, it will be sufficient to pay the interest on the public debt and leave a surplus of $39,000,000 in gold. The following table exhibits the receipts for the last fiscal year:: Qustoms. “$179,046.655!3 Public lands., 65,031(3 Direct tax. 1, 914, 73142 internalrevenue.. 309, 226, 81432 Miscellaneoussources. 67, 119, 36991 To give an idea of what the Present fiscal year will likely produce, I append a table showing the receipts for the fiscal quarter of the Present year: Customs. $50, 843, 744 24 Lands 228, 39972 Direct tax 340, 45439 internalrevenue. 99, 166, 99938 7, 981, 764 24 Miscellaneous. S158, 561, 386 57 Total. For the 1st 5 months of the Present fiscal year ending December 1, 1866, the receipts were as follows: Customs. $78, 843, 77246 internalrevenue. 146, 355, 71753 If this ratio of receipts be maintained during the year these 2 items alone will yield to the Government over $540,000,000. The special commissioner estimates the receipts for the fiscal year ending June 30, 1868, as follows: Customs. internal reOther sources. Total. 150,000,000 275,000,000000 This is the lowest estimate made, and the supposed reduction from Present receipts is scarcely justified by any facts before us. The commissioner simply means that the receipts cannot fall below this sum. Now, with these facts before us, I again ask what the necessity of this continued taxation? Qur public securities are now at a premium on this side of the ocean, and our people have confidence, and will continue to have confidence, in their ultimate payment. Last year we reduced the principal of our public debt at least $200,000,000, which may have advanced confidence in foreign markets; but our own people are no more certain of their ultimate redemption than they were before. The SecyTreasury complains that so many of our bonds are now owned abroad. This policy of collecting large balances by taxation, to be applied to the payment of the public debt, can have no other effect than to render our own people unable to. hold them and force them the foreign market. When once sold abroad they constitute the basis of a cheap exchange, and tempt the importer to flood the country with foreign fabrics. I therefore insist that instead of collecting $300,000,000 from excise taxes we collect about half that amount or enough simply to meet the current expenditures of the Government. There is now a large balance of coin in the Treasury, say $80,000,000, exclusive of deposits, and also a large balance of currency, all of which is dead capital not needed for Pressing demands upon the Treasury, and yet we proposed to increase instead of diminishing the burdens of taxation. For the reasons which I have stated I appeal to the chairman of the ComFinance and his distinguished. associates to let this measure be postponed until the House shall have perfected the intermal revenue bill and sent it to us. Let us reduce internal taxes, a thing which will relieve every industrial interestand none so surely as the manufacturer himself, and we can then adjust tariff rates so as to wrong no interest, and best subserve the purposes of the Govern.ment. If we pass this faw and then reduce the excise tax, prices will still be advanced, and that advance will not benefit the Government, but for some time at least will be a mere bonus to the manufacturer. I did not intend to offer amendments to this bill, but I have indulged the hope at all times that its Present consideration would be post poned. If, however, its consideration is to be Pressed upon us, there are many inequalities which I conceive to be prejudicial to the interests of my own State, if not to the entire West, which I shall endeavor to remove. This very article of hemp Presents one of them. The proposed tax on the article is not exceeding 15%., while the ruling rates on the majority of articles, and especially those in the older States, are from 50 to 100%. I discovered that the article of raw hides, produced in the West and consumed in the East, are put at ten%. This will not pay transportation over the railroads and is no protection against the European article. The goat, calf, and deer skins of the West are put at 5%.; the sole leather of Spain is placed at 35%., and the French and German calf skins at only 30%. Flaxseed is kept at 16 cents per bushel., Linseed cake at 20%., and flaxseed oil at 23 cents per gal lon. The manufactures of lead are put at 3 cents per pound, and butter is reduced from 4 cents per pound to 3. Litho graphic stones which abound in my State are placed at 20%., while the Senfrom Vermont [Mr. EDMUNDs] is dissatisfied with 25%., and one dollar per cubic foot in addition upon the marble in his State. I discover also a duty of 2 dollars per 1,000 on fencing lumber needed to open up the farms of the West, while the ship tim ber, spars, oakum, and adhesive felt, and other articles entering into the construction of ships are entered on the free list; and that is not all. The Senfrom Maine discovers that this vicious system of legislation is rapidly destroying the ship building and commercial interests of his own State. To check this tendency to decay he has provided in the 22nd section of this bill for a drawback equal in amount to the import duty paid on all iron, lumber, hemp, manila, copper, and cordage used in the construction, rigging, or equipment of sailing or steam vessels of the U.S. This is a bounty of not less than 20%. othe cost of a vessel, but in my judgment the Senator will accomplish nothing by this motion. If this measure passes commerce will languish still. There is now no line of ocean steamers owned by an American company..The Senfrom Connecticut says that ship building has ceased in his own State. The special commissioner tells us that vessels can be built in Canada and NewBrunswick for 50%. less than they can be built in the State of Maine.