preceding calendar year, whether derived from any kind of property, rents, interests, dividends, or salaries, or from any profession, trade, employment, or vocation carried on in the United States or elsewhere, a tax of two per centum on the amount so derived over and above $4,000, and a like tax shall be levied, collected, and paid annually upon the gains, profits, and income from all property and of every business, trade, or profession carried on in the United States by persons residing without the United States, and not citizens thereof.

SEC. 59. That there shall be levied and collected a tax of two per centum on all dividends in scrip or money thereafter declared due, wherever and whenever the same be payable to stockholders, policy holders, or depositors or parties whatsoever, including non-residents, whether citizens or aliens, as part of the earnings, income, or gains of any bank, trust company, savings institution, and of any fire, marine, life, inland insurance company, either stock or mutual, under whatever name or style known or called in the United States or territories, whether spe cially incorporated, or existing undergeneral laws, and on all undistributed sums, or sums made or added during the year to their surplus or contingent funds; on all dividends, annuities, or interest paid by corporations or associations organized for profit by vir tue of the laws of the United States or of any state or territory, by means of which the liability of the individual stockholders is in anywise limited, in cash, scrip, or otherwise; and the net income of all such corporations in excess of such dividends, annuities, and interest, or from any other sources whatever.

HON. CHARLES F. CRISP OF GEORGIA, SPEAKER OF THE HOUSE OF REPRESENTATIVES.

Other Radical Amendments.-Several other amendments of a somewhat radical nature were made during the passage of the bill through the house. On January 22 it was decided by large majorities not only that the bounty paid to sugar growers in the United States should be removed, but that all duties should be taken off refined as well as raw sugar. This unconditional opening of the

American market to foreign sugar was a complete reversal of the Republican policy, under which the freedom of the United States market was granted to foreign countries only on condition that they should give equivalent concessions to the American export trade, by admitting American products at specially favorable rates. Under this policy a long series of reciprocity treaties had been negotiated, through which about 90 per cent of the imported sugar supply was made the basis for obtaining favorable concessions abroad, and through which not only was the European embargo upon American pork products removed, but important stimulus was given to the United States export trade to the British and Spanish West Indies, and the Latin-American republics to the South.

In spite of protests from Pennsylvania, Ohio, Maryland, West Virginia, Virginia, Tennessee, and Alabama, coal was allowed to remain on the free list, where it had never been before since the first tariff law of 1789.

It was not without protest that the duty on pig iron was further reduced from 224 to 20 per cent; on bar iron, forgings, and boiler iron, from 30 to 25 per cent; and on iron or steel rails, from 25 to 20 per cent. The tax on cigarettes was reduced from $1.60 a thousand to $1.00. All restrictions were removed from the importation of petroleum. Crude opium was placed on the dutiable list at $1 a pound; and New Zealand hemp for binding twine was admitted free. A proposition to put agricultural implements on the free list was defeated, the restriction being retained that they shall be free only when imported from countries which lay no duties on implements from the United States. An amendment specifically repealing the reciprocity clauses of the McKinley tariff law, presented by Chairman Wilson, but not designed by its framers to affect in any way existing treaties, was passed.

The debate in the house ended February 1, when, amidst a scene of great interest and excitement, the Wilson bill was passed by a vote of 204 to 140, with 8 members not voting, and there being 4 vacancies. The majority vote was made up of 196 Democrats and 8 Populists; the minority vote, of 122 Republicans, 17 Democrats, and 1 Populist. The closing speeches were made. by Ex-Speaker Reed, Speaker Crisp, and Mr. Wilson. Mr. Reed in a most powerful speech in which he traced the rise into favor of the protectionist policy in Europe and elsewhere during the last fifty years, denounced the bill as neither protectionist nor free trade, but likely to

continue the present state of business uncertainty. Speaker Crisp replied to Mr. Reed's speech in an able effort; and Mr. Wilson closed the debate with an earnest appeal to every Democrat to be true to the principles of the party.

'The vote on the internal revenue amendment followed, and stood 182 to 50, 43 Democrats voting no. The final vote on the passage of the Wilson bill as a whole stood. 204 to 140, as above stated, and was followed by an enthusiastic demonstration on the Democratic side.

As compared with the form in which it was reported to the house, the bill as it finally went to the senate, on February 1, would still further increase the estimated deficit. The following table shows the amount of duties received under each schedule on the importations of 1893, and the amount which would be received on the same importations under the Wilson bill:

Tariff Revision in the Senate.-Though sent to the senate immediately on passing the house, the Wilson bill was not finally reported from the finance committee to the full senate until March 20. It had in the meantime undergone several remarkable changes. The Democratic majority being small, and there being considerable opposition to various features of the Wilson bill as it stood the members of the sub-committee of the committee on finance, to whom the bill was referred, found it necessary, in order to prevent the risk of defeat for the bill, to make important concessions to those Democratic senators whose constituents had urged them to secure modifications. As a whole these modifications were of the nature of higher duties, in the line of protection to local interests. Thus, as a concession to the Louisiana

senators, sugar, raw and refined, was put on the dutiable list at an average of about 1 1-5 cents a pound for raw, and an advantage of perhaps one-eighth of a cent over this for refined sugar, the following being the wording of the sugar section:

'All sugars-tank bottoms, syrups of cane juice or of beet juice, melada, concentrated melada, concrete and concentrated molasses-testing by the polariscope not above eighty degrees shall pay a duty of one cent per pound; and for every additional degree or fraction of a degree above eighty and not ninety degrees shown by the polariscope test shall pay one one-hundredth of one cent per pound additional; and above ninety and not above ninety-six degrees, for every additional degree or fraction of a degree shown by the polariscope test, shall pay a duty of two one-hundredths of a cent per pound additional; and above ninety-six degrees by polariscope test shall pay a duty of one and four-tenths cents per pound; molasses testing not above fiftysix degrees by the polariscope shall pay a duty of two cents per gallon; molasses testing above fifty-six degrees shall pay a duty of four cents per gallon."

As a concession to West Virginia, Maryland, and other interested states, coal was made dutiable at 40 cents a ton. Iron ore was also taken from the free list, and made dutiable at 40 cents a ton, as a concession to the interests of West Virginia, Maryland, Alabama, and other states. The advance of the rate on collars and cuffs from 35 to 45 per cent was secured through the insistence of Senator Murphy of Troy, N. Y. A duty of three-fourths of a cent a pound was put on lead ores and silver ores in which several Western states are mainly interested. The demand of the New York senators for higher duties on barley and malt was also granted, the barley rate being increased from 25 to 30 per cent, and the barley malt rate from 35 to 40 per cent. The extension of the bonded period to eight years is also generally regarded as a concession to the whiskey interests, offsetting the increase of the internal revenue tax to $1.10 a gallon. Manufactures of glass were advanced from 5 to 10 per cent; and some manufactures of iron were advanced slightly, while others were reduced.

The following is a complete list of the articles taken. from the free list:

Apples, green, ripe, and dried, etc.; beef, mutton, and pork; bone char, suitable for use in decolorizing sugars; bituminous and shale and coal slack or cut; coke, cocoa fibre, floor matting manufactured from round or split straw, including Chinese matting; dates, cocoanuts, Brazil nuts, cream nuts, Gambier nuts, salted horn strips and tips, iron ore, olives, green or prepared; orchids, lily of the valley, azaleas, palms, and other plants used for forcing under glass

for cut flowers or decorative purposes; sausage skins, sugars, stained or painted window glass or painted glass windows, paintings and statuary in the paragraph referring to articles imported for exhibition by any association authorized by the United States or any state.

The above are the principal changes in the way of greater protection. On the other hand, several important additions were made to the free list, as well as some important reductions from the rates of the Wilson bill. The sub-committee not only refused to put raw wool on the free list, but subjected woolen manufactures to a reduction averaging about 5 per cent, which was to be made at one sweep instead of gradually at the rate of 1 per cent a year as proposed in the Wilson bill.

With some slight modifications of the text, the two per cent tax on incomes of over $4,000 was allowed to remain. In Section 59, providing for a tax on the dividends of corporations, the sub-committee struck out the following:

"On all dividends, annuities, or interest paid by corporations or associations organized for profit by virtue of the laws of the United States or any state, by means of which the liability of the individual stockholder is in any wise limited, in cash, scrip, or otherwise, and the net income of all such corporations in excess of such dividends, annuities, and interest, or from any other sources whatever."

The following clause of the same section was also struck out:

"That this act shall not apply to the income or dividends received or paid by such building and loan associations as are organized under the laws of any state or territory, and which do not make loans except to shareholders within the state where such associations have been organized. For the purposes of this act 'dividend' shall include every payment in the way of division among the owners of the stock or capital of a corporation, or persons entitled to a share of its profits or income, whether such dividends are paid out of profits or not, or are paid in cash or otherwise."

A clause was added providing that dividends or interest accruing to states, counties, or municipalities, and dividends, interest, or annuities accruing to corporations or associations organized and conducted solely for charitable, religious, or educational purposes, or to any trustee or other fiduciary, on stocks, shares, funds, or securities held solely for charitable purposes, or salaries due to state, county, or municipal officers shall not be subject to such

tax.

By the terms of the bill the treaty of June 3, 1875, with Hawaii was to be terminated.

The Latest Changes.-On March 8, the bill embodying