[153] The commission issued its first rules in May 1883; by 1884, half of all postal officials and three-quarters of the Customs Service jobs were to be awarded by merit.[153] That year, Arthur expressed satisfaction with the new system, praising its effectiveness "in securing competent and faithful public servants and in protecting the appointing officers of the Government from the pressure of personal importunity and from the labor of examining the claims and pretensions of rival candidates for public employment."[154]

Surplus and the tariff[edit]

Engraved portrait of Arthur as president (Bureau of Engraving and Printing)

With high revenue held over from wartime taxes, the federal government had collected more than it spent since 1866; by 1882 the surplus reached $145 million.[155] Opinions varied on how to balance the budget; the Democrats wished to lower tariffs, in order to reduce revenues and the cost of imported goods, while Republicans believed that high tariffs ensured high wages in manufacturing and mining. They preferred the government spend more on internal improvements and reduce excise taxes.