Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1907-12-06

Jecl can only accomplish - CertA1u
amount No legislation can BY any
possibility guarantee the business com.
muntty against the results Of specula.
tive folly any more than it can guaran.
tee an individual against the results of
us 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 if it is accom-.
panied by dishonesty. they jeopardize
not only their own future. but the fu.
ture Of all their innocent fellow citi.
zens. for they expose the whole bust
ness community to panic and distress
Can't Revise Tariff Now.
This country is definitely committed
10 the protective system, and any eff
fort to uproot 1t could not but cause
widespread Industrial disaster. In
other words. the principle of the pres
ent tariff la " could not with wisdom
De changed. But in country of such
phenomenal growth as ours it is prob
ably we'll that every dozen years or so
the tariff Ia VS. 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 Cur foreign trade is en-
couraged. There must always be as a
minimum 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
or 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-
s1deration 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 presidential
election, because as a matter of fact
experience has conclusively shown that
at such 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
herltance tax should receive the care
full attention of our legislators. In
my judgm eat, both of these taxes
should be part Of our system of fed.
erai taxation l speak diffidently about
the income tx because one scheme for
an income tax was declared unconsti-
tutional by the supreme court, while in
addition 1t is difficult tax to admin
lister in Its practical working, and great
care would have to he exercised to see
that it 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 desirable feature Of federal taxa
ton, and It 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
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~
donal by Che courts, and these laws
contained the progressive principle
that is. after certain amount is reach
ed the bequest Or Rift In life or death
Is increasingly burdphed and the rate
Of taxation is incra43ed in proportion
to the remoteness 81 blood Of tho man
'oceiving the beqdest These principles
are recognized already In the leading
civilized nations Of ~ world.
dsrmany's inhsHtano. Tax.
The German NV ibIsspeciany.. inter.
eee1ns to ~ BECAUSE makes the in
1e9tance tax I'D il9berial measure
while shotipg to the lRdividual states
Of the empire a portion Of: the pro.
peeds and permitting. them to- impose
taxes in addition to those imposed By
the imperial g0vernmSAt Small inner
itances are exempt, SIT the tax is so
sharply progressive thai when the in
heritance Is still not WY large, pro-
vided Z Is not an agricultural or a for.
est Land, 1t is taxed ut The rate of rs
per cent II It goes to distant relatives.
There is no reason why In the United
States the national government should
not impose Inheritance taxes in addi-
1on to those imposed by the states,
ana when we last had an inheritance
tax about one-half Of the states levied
such taxes concurrently with the ma
tlonal government, making q combined
maximum rate in some cases as high
as Is per cent