the Government exceeded its actual needs, and
it was suggested that legislative action should be taken to relieve the
people from the unnecessary burden of taxation thus made apparent.

In view of the pressing importance of the subject I deem it my duty to
again urge its consideration.

The income of the Government, by its increased volume and through
economies in its collection, is now more than ever in excess of public
necessities. The application of the surplus to the payment of such
portion of the public debt as is now at our option subject to
extinguishment, if continued at the rate which has lately prevailed,
would retire that class of indebtedness within less than one year from
this date. Thus a continuation of our present revenue system would soon
result in the receipt of an annual income much greater than necessary to
meet Government expenses, with no indebtedness upon which it could be
applied. We should then be confronted with a vast quantity of money, the
circulating medium of the people, hoarded in the Treasury when it should
be in their hands, or we should be drawn into wasteful public
extravagance, with all the corrupting national demoralization which
follows in its train.

But it is not the simple existence of this surplus and its threatened
attendant evils which furnish the strongest argument against our present
scale of Federal taxation. Its worst phase is the exaction of such a
surplus through a perversion of the relations between the people and
their Government and a dangerous departure from the rules which limit
the right of Federal taxation.

Good government, and especially the government of which every American
citizen boasts, has for its objects the protection of every person
within its care in the greatest liberty consistent with the good order
of society and his perfect security in the enjoyment of his earnings
with the least possible diminution for public needs. When more of the
people's substance is exacted through the form of taxation than is
necessary to meet the just obligations of the Government and the expense
of its economical administration, such exaction becomes ruthless
extortion and a violation of the fundamental principles of a free
government.

The indirect manner in which these exactions are made has a tendency to
conceal their true character and their extent. But we have arrived at a
stage of superfluous revenue which has aroused the people to a
realization of the fact th