The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-12-03


demand fell off. 1t is worth investi-
eating to determine whether officers
apd directors of national banks should
ever De allowed to loan TO themselves.
trust companies should DE subject to
/ the same supervision as banks; legis-
Iation TO this effect should be enacted
for the District of Columbia and the
territories. z-7
even the wisest legislation. on l. the
| subject can only accomplish a GER
| tain amount. No legislation can by
any possibility guarantee the business
community against the results or
| speculative folly any more than it can
| guarantee an Individual against the
results of his extravaganza. When
! an individual mortgages his house TO
buy an automobile 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 specuIatfon-es-
pec1ally If 1t is accompanied by dis
honesty-they jeopard1ze not only
/ their own future but the future Of all
/ their innocent fellow-citizens. for
they expose the whole business COM
| mun1ty to panic and distress.
/ Government Revenue.
The income account of the nation
| is in most satisfactory condition.
| For the six fiscal years ending with
| the first of June last, the total expen-
ditures and revenues of the national
! government, exclusive of the postal
| revenues and expenditures, were, in
round numbers. revenues, $3,465,000,-
900, and expenditures, $3,275,000,-
| 600. The net excess of income over
| expenditures, Including in the latter
the fifty millions expended for the
Panama CANAL was one hundred and
| ninety million dollars for the six years,
an average of about tn1rty-one mil
| lions a year. This represents an APP
Proclamation of between income and
| outgo which it would be hard to i'm
prove. The satisfactory working of
the present tariff law has been
chiefly responsible for this excellent
showing. Nevertheless, there is an
| evident and constantly growing feel
ing among our people that the time
is rapidly approaching when our sys-
| tenn of revenue legislation must be re-
vised.
The Tariff.
This country is definitely COM
mitted to the protective system and
any effort to uDroot it could not but
cause widespread industrial disaster.
In other words the principle of the
present tariff law could not with
wisdom be changed. But in a country
of such phenomenal growth as ours it
is probably well that every dozen
years or SO the tariff laws should be
. carefully scrutiniZed so as to see that
no excessive or improper benefits are
conferred thereby, that proper
revenue is provided, and that our for
eign trade is encouraged. There must
always be as a minimum a tariff
, which will at least allow for the col
lection of an ample revenue but which
will at least make good the difference
in cost of production here and abroad;
that is, the difference in the labor
cost here and abroad, for the we'll
being of the wage-worker must ever
be a cardinal point of American
policy. The question should be ap-
preached 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 motivesI l. The sole consider
alton shouldnbe to- see 9that the sum
total of changes represents the public
good. This means that the subject
can not with wisdom be dealt with in
the year preceding presidential cleo
ton, because a matter of fact exper-
fence has cOnclusively shown that at
such a time it is impossible to get
men to treat it 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
about the income tax because one
scheme for an income tax was de-
clared unconstitutional by the SUI
prenle court; while in addition it is a
difficult tax to administer in its prac- |
tical working, and great care would !
have to be exercised to see that it was |
not cNaded by the very men whom it |
was most desirable to have taxed, for |
If SO eyaded it would. of course. be |
worse than no tax ct all; as the least |
desirable of all taxes is the tax which |
bears heavily upon the honest as COM |
pared with the dishonest man. Never |
theless. graduated income tax of the |
proper type would be desirable |
feature of federal taxation, and it is to |
be hoped that one may be devised |
which the supreme court Will declare |
constitutional. The inheritance tax,
however, is both a far better method |
of taxation. and far more important |
for the purpose of having the fortunes |
of the country bear in proportion to |
their Increase in size corresponding |
increase and burden of taxation. The |
government has the absolute right to |
decide as to the terms upon which |
from another. and this point in the |
devolution of property is especially |
appropriate for the imposition of !
tax. Laws imposing such taxes have |
repeatedly been placed upon the ma |
tional- statute books and as repeated |
ly declared unconstitutional by the |
courts; and these laws contained the |
progressive principle, that is. after a |
certain amount is reached the beQuest |
or gift, in life or death, is increasing |
ly burdened and the rate of taxation is |
increased in proportion to the re-
moteness of blood Of the man recefv- |
ing the beQuest. These principles are
recognized already in the leading |
civilized nations of the world. In |