The Green Forest tribune., 1906-12-08

pei from taxation, the tax then becornfng progressive according to the remoteness of kin. The war-revenue act of June IS, 1S9S provided for an inheritance tax on any sum exceeding the value Of s10,O0d, the rate of tax increasing both in accord- ance with the amounts left and in ac- cordance with the legatee's remotepess of kin. The supreme court has held that the succession tax imposed at the time Of the civil war was not 2 dfreet tax but
 n pose or Saa Mnre eo the court, in an opinion delivered by MT. Justice White. which contained an e1- oeedinsly able and elaborate discussion Heath duties, sustained the constitution ,lity of the inheritance tax feature of the nar-revenue act of 1898.
 Is Income Tax Constitutional
 main pu1pose of raising revenue, an income tnx stends on entirely differ ont footing from an inheritance tax, be- cause 1t involves no question of the per healthy size. The question Is in its essence a question of the proper adjust ment of burdens to benefits As the cult to devise a national income tax which shall be constitutional. But whether it is absolutely impossible is an certainly desirable The first purely in come tax law was past by the congress in 1861, but the most important law deal ins with the subject was that of 1894. This the court held to be unconstitu- tiopal.
 tricate delicate, and troublesome. The decision of the court was only reached by one majority. it Is the law of the land, and, of course,, is excepted as such Nevertheless the hesitation evidently felt by the court as a whole in coming to concl lusion, when considered to- gethsr with the . previous desasigns assi on possibility of devising constitutional incomc-tax lnw which shall substan- tially aecc'csomplishs the results aimed -titution is 70 great that only real ne- cessity can justify resort thereto. Every effort should be made in deaiins ri th- proper control by the nat4onal government over the use of corpora tv :e>-lth In interstate business, to devise shall attain the desired end; but If this fails. there will ultimately b. no ai- t-r,,:ire to a constitutional amend n7eut'
 He makes Q strong plea for technical and industrial education for the masses, and while the federal government cap to but little. in this line. he asks tha4 in the District of Columbia as on ex- ample to the various states.
 Agricultural IuteressG.
 Es eprcels for every. encouragement that the congress caa Efrs to Nhe eesg5- cultural intsf~ets of the esvntrY. Ne rolnts to th. good that Is sutns Aeas N the various fn1~ns Of sYaHe,@ cfHsaESass
 'tssverei sae,srs n1rst cooperate sp t,ye ,9aprovenss.5 :" 'hs s- fa;rnss sssassA In the widest pes*ihao .--s~-in t}xe Esrfiese which keeps eyer ia v-@ the nnamase ecter, and bodily ana mental powers, those whom for the sake of the state 1t would be well to see the fathers well brought up in homes made happy by their presence. No man, no woman, can shirk the primary duties of life, whether for love of ease and pleasure. or her self-respect.
 The president asks for the enactment into law of q shipping bill that will place with those of other countries. and urges especially that something be done that will establish direct steamship commu- rication with South American ports.
 Currency Reform.
 Amendments to the present currency laws are asked for, and. after showing that present laws are inadequate because of the wide fluctuation of interest charges, he says:
 shows that our present system is seri- ously defective There Is need of a change. Unfortunately. however, many of the proposed changes must be ruled from consideration because they are complicated are not easy of cornpre- hension. and tend to disturb existing rights and interests. We must also rule out any plan which would ma terially impair the value of the United States two per cent bonds now pledged to secure circulation, the issue of culiarly creditable to the treasury I do not press any special plan. Various plans have recently been proposed by expert committees of bankers. Among the plans which are possibly feasible and which certainly should receive your consideration is that repea te}ly ent secretary of the treasury the es- sential features of which have been approved by many prominent bankers and business men. According to this plan national banks should be per mitted to issue a specified proportion of their capital in notes of q given a rate as to drive the notes back when not wanted in legitimate trade Thfs plan would not permit the issue of currency to give .ba banks additional sented by times of strinCency.
 Need of Automatic System.
 q do not say that this. is. the right size my belief that there is need for the adoption of some system which shall be automatic and open 10 all sound banks, so as to avoid all pos sibinty of discrimination and favorit- ism. Such a plan would tend to pre- vent the spasms of high money and speculation which now obtain in thc New York market; for at present there Is too much currency at certain seasons of the year. and its accumu- lation at New York tempts bankers to lend it at low rates for speculative purposes; whereas at other times when the crops are ping moved there is urgent need for large but temporary increase in the currency supply. It must never be forgotten that this question concerns business men gen orally quite as much as bankers: es- pecally is this true of stockmen. farmers and business men in the west; for at present at certain seasons of the year the difference in interest rates between the east and the west is from six to ten per cent. whereas in but two per cent. Any plan must, of course. guard the interests of west ern and southern bankers as carefully as 1t guards the interests of New York or Chicago bankers; and must be drawn from the standpoints of the farmer and the merchant no less than from the standpoints of the city banker and the country banker
 The law should be amended so as to specifically to provide that the funds de- rived from customs duties may be treat ed by the secretary of the treasury as he treats funds obtained under the in- ternal revenue laws. There should be 8 considerable increase in bills of small denominations. Permission should be given banks, if necessary under settled restrictions, to retire their. circulation. to 1,rrrnr ,n,fAt thao a 00N 000 mn, tI'