There was relatively little financial legislation in the 1880s.
By that time, fewer bonds were necessary, as the government now ran a consistent surplus which by 1882 reached $145 million.
Opinions varied on how to balance the budget; Democrats wished to lower tariffs to reduce revenues and the cost of imported goods, while Republicans believed that high tariffs ensured high wages in manufacturing and mining.
They preferred the government spend more on internal improvements and reduce excise taxes.
Congress passed a law creating a committee to study tariff reduction, but Arthur appointed mostly protectionists to it.
In December 1882, the committee submitted a report to Congress calling for tariff cuts averaging between 20 and 25%.
The commission's recommendations were ignored, however, as the House Ways and Means Committee, dominated by protectionists, provided a 10% reduction.
After conference with the Senate, the bill that emerged only reduced tariffs by an average of 1.47%, but it did remove or reduce many excise taxes.
Sherman supported the bill, more for the excise reduction than for the tariff changes.
The bill, known as the Tariff of 1883 (or, by detractors, as the "Mongrel Tariff") passed both houses narrowly on March 3, 1883, the last full day of the 47th Congress; Arthur signed the measure into law, but it had no effect on the surplus.
There was relatively little financial legislation in the 1880s. By that time, fewer bonds were necessary, as the government now ran a consistent surplus which by 1882 reached $145 million. Opinions varied on how to balance the budget; Democrats wished to lower tariffs to reduce revenues and the cost of imported goods, while Republicans believed that high tariffs ensured high wages in manufacturing and mining. They preferred the government spend more on internal improvements and reduce excise taxes. Congress passed a law creating a committee to study tariff reduction, but Arthur appointed mostly protectionists to it. In December 1882, the committee submitted a report to Congress calling for tariff cuts averaging between 20 and 25%. The commission's recommendations were ignored, however, as the House Ways and Means Committee, dominated by protectionists, provided a 10% reduction. After conference with the Senate, the bill that emerged only reduced tariffs by an average of 1.47%, but it did remove or reduce many excise taxes. Sherman supported the bill, more for the excise reduction than for the tariff changes. The bill, known as the Tariff of 1883 (or, by detractors, as the "Mongrel Tariff") passed both houses narrowly on March 3, 1883, the last full day of the 47th Congress; Arthur signed the measure into law, but it had no effect on the surplus.
John Sherman