law, to apply the surplus to the gradual reduction
of the debt. While I was secretary I heartily co-operated with
the committees of Congress in reducing appropriations, and in this
way was enabled to maintain the reserve, and to reduce the interest-
bearing public debt.

The policy of Mr. Cleveland and Secretary Manning was to hoard in
the treasury as much of the currency of the country as possible,
amounting sometimes to more than $200,000,000, and this created a
stringency which affected injuriously the business of the country.
It was the policy of all the early Presidents to apply any surplus
revenue either to the reduction of the public debt or to public
objects.

Mr. Jefferson, in his message of 1806, says: "To what object shall
the surplus be appropriated? Shall we suppress the impost, and
thus give that advantage to foreign over domestic manufacturers?"
He believed that the patriotism of the people would "prefer its
continuance and application for the purpose of the public education,
roads, rivers and canals." This was in exact opposition to the
policy proposed by Mr. Cleveland, who refused to apply the surplus
revenue to the reduction of the debt, and in his extraordinary
message demanded a reduction of duties on foreign goods. A larger
surplus revenue had frequently, from time to time, been wisely
dealt with by Republican administrations. It had either been
applied by the executive authorities to the payment of the public
debt, or its accumulation had been prevented by Congress, from time
to time, by the reduction or repeal of taxes. In the administration
of each of Mr. Cleveland's predecessors since the close of the war,
this simple remedy had been applied without neglecting other matters,
or raising a cry of alarm. It was apparent that the object of the
President was to force the reduction of duties on imported goods,
which came into competition with domestic products, and that the
accumulation of money in the treasury was resorted to as a means
to compel such a reduction.

On the 19th of July, 1886, I had called the attention of the Senate
to the difficulty and danger of hoarding in the treasury surplus
revenue, and the readiness of the Senate to provide for the reduction
of taxes and the application of the surplus. The revenues could
have been reduced without endangering domestic industries. At the
date of his extraordinary message both Houses of Congress were
quite ready to reduce taxes. Fu