The true northerner., 1907-12-06

amount No legislation can by any
possibility guarantee the business COM
munity against the results OF specula-
tive folly any more than II can guarnn-
tee an individual against the results Of
his extravaganza. When an individual
mortgages his house to buy an auto
mobile he invites disaster. and when
wealthy men or men who pose as such
or are unscrupulously or foOlishly eager
to become such indulge In reckless
| speculation. especially II II Is accom-
panied by dishonesty. they Jeopardize
not only their own future. but the fu-
ture Of all their innocent fellow citi-
Gems. for they expose the whole busi-
ness community to panic and distress.
Can't Revise Tariff Now.
This country Is definitely committed
to the protective system. and any ef-
fort to uproOt It could not but cause
! widespread Industrial disaster. In
other words. the principle Of the pres
ent tariff law could not with wisdom
be changed. But In a country Of such
phenomenal growth as ours 1t is prob
ably we'll that every dozen years or 30
the tariff la ws should be carefully scru-
tinized 80 as to see that no excessive
, or improper ;,enefits are conferred
thereby. that proper revenue is provid-
ed and that our foreign trade Is en-
couraged. There must always be as
minimum a tariff which will not only
allow for the collection Of an ample
revenue. but which will at least make
good the difference In cost Of produc-
ton here and abroad-that is, the DIFF
ference In the labor cost here and
abroad. for the we'll being Of the wage
worker must ever be cardinal point
Of American policy. The question
should be approached purely from a
business standpoint. both the time and
the manner of the change being such
as to arouse the minimum Of agitation
and disturbance In the business world
and to give the least play for selfish
and factiOnal motives The sole con-
sideration should be to see that the
sum total of changes represents the
public good. This means that the sub
ject cannot with wisdom be dealt with
election. because as matter Of fact
experience has conclusively shown that
at such a time ii is impossible to get
men to treat 1t from the standpoint of
the public good. In my judgment the
wise time to deal with the matter Is
Immediately after such election.
Income Tax and inheritance Tax.
When our tax laws are revised the
question Of an income tax and an in
heritance tax should receive the care
full attention Of our legislators In
my judgment, both of these taxes
should be part of our system of fed
eral taxation. | speak ditfidently about
the income tax because one scheme for
an income tax was declared unconsti-
tutional by the supreme court, while in
addition ii is Il difficult tax to admin
lister in its practical workino I'D great
care would have TO he exercised to see
that 1t was not evaded by the very
men whom it was most desirable to
have taxed Nevertheless a graduated
income tax of the proper type would
be q desirable feature of federal taxa
ton, and 1t is to be hoped that one
may be devised which the supreme
court will declare constitutional
The Inheritance tax. however, is
a far better method of taxation. The
government has the absolute right TO
decide as to the terms upon which a
man shall receive bequest from an
other. and this point in the devolution
Of property Is especially appropriate
for the imposition of a tax. Laws i'm
posing such taxes have repeatedly been
placed upon the national statute books
and as repeatedly declared constitu-
tional by the courts, and these laws
contained the progressive principle
that Is. after q certain amount is reach
ed the bequest or gift In life or death
Is increasingly burdened and the rate
Of taxation is increased In proportion
to the remoteness OF blood of the man
receiving the bequest. These principles
are recognized already In the leading
civilized nations of the world
Germanys Inheritance Tax.
The German law is especially inter
esting to us because Ii makes the in
heritance tax an imperial measure
while alloting to the individual states
of the empire portion OF the pro-
ceeds and permitting them to impose
taxes In addition TO those imposed by
the imperial government. Small inher-
itances are exempt. but the tax is so
sharply progressive that when the in
heritance is still not very large. pro
vided 1t Is not an agricultural or for
est land, Ii Is taxed at the rate of %
per cent II II goes TO distant relatives
There is no reason why In the United
States the national government should
not impose inheritance taxes I'm addi-
tion to those imposed by the states.
and when we last had an inheritance
tax about one-half of the states levied
such taxes concurrently with the ma
tional government. making combined
maximum rate I'm some cases as high
as 25 per cent.
To Tax Nonresidents Higher.
The tax should II possible be made
to bear more heavily upon those resid-