Both national parties were reluctant to face the issue, but the pressure of conditions became too strong for them.

Revenue arrangements originally planned for war needs were still amassing funds in the Treasury vaults which were now far beyond the needs of the Government, and were at the same time deranging commerce and industry.
In times of war, the Treasury served as a financial conduit; peace had now made it a catch basin whose excess accumulations embarrassed the Treasury and at the same time, caused the business world to suffer from a scarcity of currency.

In his annual message on December 6, 1881, President Arthur cautiously observed that it seemed to him "that the time has arrived when the people may justly demand some relief from the present onerous burden." In his message of December 4, 1882, he was much more emphatic.

Calling attention to the fact that the annual surplus had increased to more than $145,000,000, he observed that "either the surplus must lie idle in the Treasury or the Government will be forced to buy at market rates its bonds not then redeemable, and which under such circumstances cannot fail to command an enormous premium, or the swollen revenues will be devoted to extravagant expenditures, which, as experience has taught, is ever the bane of an overflowing treasury." The congressional agents of the protected industries were confronted by an exacting situation.

The country was at peace but it was still burdened by war taxes, although the Government did not need the accumulating revenue and was actually embarrassed by its excess.