the bonds and their proceeds. No further use should be made of this
method of getting the surplus into circulation, and the deposits now
outstanding should be gradually withdrawn and applied to the purchase of
bonds. It is fortunate that such a use can be made of the existing
surplus, and for some time to come of any casual surplus that may exist
after Congress has taken the necessary steps for a reduction of the
revenue. Such legislation should be promptly but very considerately
enacted.

I recommend a revision of our tariff law both in its administrative
features and in the schedules. The need of the former is generally
conceded, and an agreement upon the evils and inconveniences to be
remedied and the best methods for their correction will probably not be
difficult. Uniformity of valuation at all our ports is essential, and
effective measures should be taken to secure it. It is equally desirable
that questions affecting rates and classifications should be promptly
decided.

The preparation of a new schedule of customs duties is a matter of great
delicacy because of its direct effect upon the business of the country,
and of great difficulty by reason of the wide divergence of opinion as
to the objects that may properly be promoted by such legislation. Some
disturbance of business may perhaps result from the consideration of
this subject by Congress, but this temporary ill effect will be reduced
to the minimum by prompt action and by the assurance which the country
already enjoys that any necessary changes will be so made as not to
impair the just and reasonable protection of our home industries. The
inequalities of the law should be adjusted, but the protective principle
should be maintained and fairly applied to the products of our farms as
well as of our shops. These duties necessarily have relation to other