Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-12-03


lions carefully prescribed by the gov
ernment Such emergency issue must
be based on adequate securities ap
proved by the government and must Dc
issued under heavy tax. This woulo
permit currency being issued when the
demand for it was urgent, while secur
ing its retirement as the demand fel
off, 1t is worth investigating to de
termine whether officers and directors
Of national banks should ever be nj
lowed to loan to themselves. Trust
companies should be subject to tn,
same supervision as banks. Legisla
ton to this effect should be enacted FOL
the District OF Columbia and the ter
ritorias.
Yet we must also remember thai
even tbs 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 1t can guaran,
tee m 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 If 1t is accom-
panied by dishonesty, they jeopardize
not only their own future, but the fu'
ture Of MI 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
to the protective system, and any eff
fort to ,iproot 1t 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 sc
the tariff laws should be carefully scru.
tinted 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 us 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 well being Of the wage
worker must ever be Il cardinal point
Of American policy. The question
should he approached purely from q
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 te, 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 presidential
election, because as matter Of fact
experience has conclusively shown that
mt such time 1t Is impossible to get
men 10 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 tile
question Of an income tax and an In
heritlnce 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 diti1dently about
the income tax because one scheme fol
an income tax was declared unconsti
tutional by the supreme court, while In
addition it is u difficult tax to admin
lister in its practical working, and great
care would have to be exercised to see
that it was not evaded by the very
men whom it was most desirable to
have taxed. Nevertheless graduated
income tax Of the proper type would
be o. 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 ia
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 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 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
Germany's Inheritance Tax.
The German law is especially inter-
esting to us because 1t 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 inner
itances are exempt, but the tax is so
sharply progressive that when the in
heritance is still net very large, pro-
vided it Is not an agricultural or for
est land, it is taxed at the rate Of Is