irman of the House
Committee on Ways and Means, presented a new tariff bill (the Wilson
Bill) which after prolonged debate passed both Houses and became a law
at midnight, August 27, 1894, without the President's signature. As it
was expected that the revenue yielded would not be sufficient to meet
the expenses of government, one section of the law provided for a tax of
two per cent on all incomes above $4000. This the Supreme Court
afterwards declared unconstitutional.

%561. The Bond Issues.%--We have seen that in April, 1893, the gold
reserve fell to $97,000,000. But it did not stop there; for, the
business depression and the demand for the free and unlimited coinage of
silver continuing, the withdrawal of gold went on, till the reserve was
so low that bonds were repeatedly sold for gold wherewith to maintain
it. In this wise, during 1894-95, $262,000,000 were added to our
bonded debt.

%562. Foreign Relations; the Hawaiian Revolution.%--when Cleveland
took office, a treaty providing for the annexation of the Hawaiian
Islands was pending in the Senate. In January, 1983, these islands were
the scene of a revolution, which deposed the Queen and set up a
"provisional government." Commissioners were then dispatched to
Washington, where a treaty of annexation was negotiated and (February
15) sent to the Senate for approval. In the course of the revolution, a
force of men from the United States steamer _Boston_ was landed at the
request of the revolutionary leaders, and our flag was raised over some
of the buildings. When these facts became known, the President, fearing
that the presence of United States marines might have contributed much
to the success of the revolution, recalled the treaty from the Senate,
and sent an agent to the islands to investigate. His report set forth in
substance that the revolution would never have taken place had it not
been for the presence and aid of United States marines, and that the
Queen had practically been deposed by United States officials. A new
minister was thereupon sent, with instructions to announce that the
treaty of annexation would not be confirmed, and to seek for the
restoration of the Queen on certain conditions. But President Dole of
the Hawaiian republic denied the right of Cleveland to impose
conditions, or in any way interfere in the domestic concerns of Hawaii,
and refused to surrender to the Queen.

%563. The Venezuelan Boundary Dispute.%--During 1895, the boundary