The federal surplus continued to grow. By 1888, it was almost $120 million. This was now becoming an embarrassment for the Republicans, and they needed to find a way to reduce it. But Republicans did not want to reduce the high tariffs of protectionism. So Republicans in congress including James G. Blaine and presidential nominee Benjamin Harrison, proposed to slash the federal excise taxes which were levied mainly on alcohol and tobacco. It didn't really mean "free whiskey" or "free tobacco", but it would definitely reduce the price. This was not the "the relief of those of our countrymen who suffer under present conditions" that Grover Cleveland was looking for.
In his last annual address (of his first term), President Cleveland pleaded with congress to find fair and equitable way to reduce the surplus.
"The necessity of the reduction of our revenues is so apparent as to be generally conceded, but the means by which this end shall be accomplished and the sum of direct benefit which shall result to our citizens present a controversy of the utmost importance. There should be no scheme accepted as satisfactory by which the burdens of the people are only apparently removed. Extravagant appropriations of public money, with all their demoralizing consequences, should not be tolerated, either as a means of relieving the Treasury of its present surplus or as furnishing pretext for resisting a proper reduction in tariff rates. Existing evils and injustice should be honestly recognized, boldly met, and effectively remedied. There should be no cessation of the struggle until a plan is perfected, fair and conservative toward existing industries, but which will reduce the cost to consumers of the necessaries of life, while it provides for our manufacturers the advantage of freer raw materials and permits no injury to the interests of American labor.
The cause for which the battle is waged is comprised within lines clearly and distinctly defined. It should never be compromised. It is the people's cause."
Later, in this same address, Grover Cleveland spoke out against what he believed to be the dangers of "overweening" the people.
"When to the selfishness of the beneficiaries of unjust discrimination under our laws there shall be added the discontent of those who suffer from such discrimination, we will realize the fact that the beneficent purposes of our Government, dependent upon the patriotism and contentment of our people, are endangered. Communism is a hateful thing and a menace to peace and organized government; but the communism of combined wealth and capital, the outgrowth of overweening cupidity and selfishness, which insidiously undermines the justice and integrity of free institutions, is not less dangerous than the communism of oppressed poverty and toil, which, exasperated by injustice and discontent, attacks with wild disorder the citadel of rule."
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