, but to make proper and
liberal provision for that most deserving body of public creditors, the
soldiers and sailors and the widows and orphans who are the pensioners
of the United States.

The Government should not be permitted to run behind or increase its
debt in times like the present. Suitably to provide against this is the
mandate of duty--the certain and easy remedy for most of our financial
difficulties. A deficiency is inevitable so long as the expenditures of
the Government exceed its receipts. It can only be met by loans or an
increased revenue. While a large annual surplus of revenue may invite
waste and extravagance, inadequate revenue creates distrust and
undermines public and private credit. Neither should be encouraged.
Between more loans and more revenue there ought to be but one opinion.
We should have more revenue, and that without delay, hindrance, or
postponement. A surplus in the Treasury created by loans is not a
permanent or safe reliance. It will suffice while it lasts, but it can
not last long while the outlays of the Government are greater than its
receipts, as has been the case during the past two years. Nor must
it be forgotten that however much such loans may temporarily relieve
the situation, the Government is still indebted for the amount of the
surplus thus accrued, which it must ultimately pay, while its ability
to pay is not strengthened, but weakened by a continued deficit. Loans
are imperative in great emergencies to preserve the Government or its
credit, but a failure to supply needed revenue in time of peace for
the maintenance of either has no justification.

The best way for the Government to maintain its credit is to pay as it
goes--not by resorting to loans, but by keeping out of debt--through an
adequate income secured by a system of taxation, external or internal,
or both. It is the settled policy of the Government, pursued from the
beginning and practised by all parties and Administrations, to raise the
bulk of our revenue from taxes upon foreign productions entering the
United States for sale and consumption, and avoiding, for the most part,
every form of direct taxation, except in time of war. The country is
clearly opposed to any needless additions to the subject of internal
taxation, and is committed by its latest popular utterance to the system
of tariff taxation. There can be no misunderstanding, either, about the
principle upon which this tariff taxation shall be le