The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1907-12-04

even the wisest legislation on the sub
ject can only accomplish a certain
amount No legislation can by any
possibility guarantee the business COM
munity against the results of specula
tive folly any more than it can guaran-
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 it is accom-
panied by dishonesty. they jeopardize
not only their own future. but the flu
ture Of all their innocent fellow citi-
zens. 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 eff
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 country Of such
phenomenal growth as ours it is prob
ably we'll that every dozen years or so
the tariff laws should be carefully scru-
tinized so as to see that no excessive
or improper benefits are conferred
thereby. that proper revenue is provid.
ed and that our foreign trade Is en-
couraged. There must always be as a
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 well 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
aud 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
in the year preceding a presidential
election, because as matter OF fact
experience has conclusively shown that
at such time it is impossible to get
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 difiidently about
the income tax because one scheme for
an income tax WIS declared unconst-
tutonal by the supreme court, while in
addition il is II difficult tax to admin
lister in it's practical working. and great
care would have to lie exercised to see
that it WAS not cvaded by the very
men whom it was most desirable TO
have taxed Nevertheless a graduated
income tax of the proper type would
he a desirable feature OF federal taxa
ton, and it is to be hoped that one
may he devised which the supreme
court will declare constitutional.
The Inheritance tax. however, is
n far better method Of taxation. The
. ~l,,to ,s,.i,, 30
decide as To the terms upon which a
man shall receive bequest from an
other. and this point in the devoluton
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-
tlonal by the. courts, and these laws
contained the progressive principle
that Is. after certain amount is reach
ed the bequesL or gift in life or death
Is increasingly burdened and the rate
Of taxation il increased in proportion
10 the relnoteness of blood OF the man
receiving the bequest These principles
are recognized already in the leading
civilized nations of the world.
Germany's inheritance Tax.
The German law Is especially inter
esting TO us because 1t makes the in
hsrltance tax All imperial measure
while allotlng to the individual states
OF the empire a portion OF the pro
ceeds and permitting them to impose
taxes in addition TO those imposed by
the imperial government. Small inner.
itances are exempt. but the tax is so
sharply progressive that when the In
heritance is still not very large. pro
vided IL IL not an agricultural or a for
est land. 1t is taxed at the rate OF %
per cent II IL goes to distant relatives.
There Ia no reason why In the United
States the national government should
not impose inheritance taxes in addi-
tion 10 those imposed by the states.
and when we last had an inheritance
tax about one-half OF the states levied
such taxes concurently with the ma
| ttonal government, making a combined
max imum rate in some cases az high
o.