national
credit never excelled in history. The national debt, less cash in the
treasury, stood on July 1, 1894, after an increase during the previous
fiscal year of $60,000,000, at $899,313,381.

The old tariff issue had emerged again soon after the end of the war.
The Morrill tariff of 1861 about restored the rates of 1846, and even
those rates had, on many things, been very decidedly increased during
the war. Still further protective duties had been laid in the course of
the war, called compensating duties, to offset the internal revenues
which burdened manufacturers in various ways. After the war the internal
taxes were nearly all swept away at the earliest possible moment, until,
after July 1, 1883, only spirits, fermented liquors, tobacco, banks and
bankers yielded internal revenue. Customs duties were also removed from
nearly all so-called revenue articles, as spices, tea, and coffee, not
produced in this country--the tax, therefore, not being of a protective
nature. Slight reductions were, indeed, made in protective duties, first
in 1872--replaced, however, almost entirely in 1875--and again in 1883.
The act of 1883 lowered protection less than appeared, and its rates on
woollens, high grade cottons, iron ore, steel, and a few other articles,
were now made even higher than the same had previously borne. It will be
seen that our policy during the years under survey was to limit national
income sufficiently without lowering or removing any protective duties.

In the republican platform of 1888 this policy was explicitly avowed. At
that time, as next to nothing could at present be done to pay off the
national indebtedness, both parties had to admit that some measure was
needed to lessen the revenue. The republican plan was to effect the
reduction mainly by lowering or removing the remaining internal taxes,
the democratic to secure the same result by changes in customs duties,
cutting down rates and enlarging the free list. President Cleveland's
message to Congress in December 1887, stated the issue with great
clearness, and this issue was the main one which divided the two parties
in the presidential election of the ensuing year.

Anticipating a little we may remark in this place that the Republicans,
having acquired control of all three legislative branches of the
Government, passed, in 1890, the McKinley Tariff Act, considerably
raising rates, though somewhat enlarging the free list. It removed the
duty from ra