%545. The Surplus and the Tariff.%--These financial problems were brought up by the condition of the public debt. For twenty years past the debt had been rapidly growing less and less, till on December 1, 1887, it was $1,665,000,000, a reduction of more than $1,100,000,000 in twenty-one years. By that time every bond of the United States that could be called in and paid at its face value had been canceled. As all the other bonds fell due, some in 1891 and others in 1907, the government must either buy them at high rates, or suffer them to run. If it suffered them to run, a great surplus would pile up in the Treasury. Thus on December 1, 1887, after every possible debt of the government was met, there was a surplus of $50,000,000. Six months later (June 1, 1888) the sum had increased to $103,000,000. Unless this was to go on, and the money of the country be locked up in the Treasury, one of three things must be done: 1. More bonds must be bought at high rates. 2. Or the revenue must be reduced by reducing taxation. 3. Or the surplus must be distributed among the states as in 1837, or spent. %546. The Mills Tariff Bill.%--Each plan had its advocates. But the Democrats, who controlled the House of Representatives, attempted to solve the problem by cutting down the revenue, and passed a tariff bill, called the Mills Bill, after its chief author, Mr. R. Q. Mills of Texas. The Republicans declared it was a free-trade measure and defeated it in the Senate. %547. The Campaign of 1888; Benjamin Harrison, Twenty-third President.%--In the party platforms of 1888 we find, therefore, that three issues are prominent: (1) taxation, (2) tariff reform, (3) the surplus. The Democrats nominated Grover Cleveland and Allen G. Thurman, and demanded frugality in public expenses, no more revenue than was needed to pay the necessary cost of government, and a tariff for revenue only. The Republicans nominated Benjamin Harrison and Levi P. Morton, and demanded a tariff for protection, a reduction of the revenue by the repeal of taxes on tobacco and on spirits used in the arts, and by the admission free of duty of foreign-made articles the like of which are not produced at home. [Illustration: Benjamin Harrison] The Prohibitionists, the Union Labor party, and the United Labor party also placed candidates in the field. Harrison and Morton were elected, and inaugurated March 4, 1889. %548. The Republicans in Control.%--The Republican party not only regained the presidency, but was once more in control of the House and Senate. Thus free to carry out its pledges, it passed the McKinley Tariff Act (1890); a new pension bill, which raised the number of pensioners to 970,000, and the sum annually spent on pensions from $106,000,000 to $150,000,000; and a new financial measure, known as