The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-12-11


lowed to loan to themselves Trust
companies should be subject to the
same supervision as banks. Legisla-
tion to this effect should be enacted for
the District Of Columbia and the ter
ritories.
Yet we must also remember that
even the wisest legislation ON the sub
Ject can only accomplish certain
amount. No legislation can by any
possibility guarantee the business COM
munlty against the results Of specula
tive folly any more than it can guuran-
tee an individual against the results Of
his extravaganza. When an individual
mortgages his house to buy an auto.
mobile cavities disaster. and when
wealthy niUh 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 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 ef-
fort to uproot 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 a country Of such
phenomenal growth as ours 1t is prob
ably we'll that every dozen years or so
the tariff laws should be carefully scru.
tinized 50 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 q
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
| 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-
slderatlon should be to see that Tie
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, betause as a matter of fact
experience has conclusively shown that
at such d time 1t 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 ID
Immediately after such election.
Income Tax and Inheritance Tax.
When our tax laws are revised the
question Of an income tax and an In.
herttance tar should receive the care
ful attention Of our legislators. IL
my Judgment, both Of these taxes
should be part of our system Of fed
eral taxation. speak dif1dently about
the income tax because one scheme for
an Income tax was declared unconsti.
tutional by the. supreme court, while in
addition 1t is u difficult tax to admin
lister In its practical working, and great
care would have to be exercised to see
that 1t was not evaded by the very
men whom It was most desirable to,
have taxed. Nevertheless Il graduated
income tax Of the proper type would
be 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
far better method of taxation. The
government has the absolute right to
decide AZ to the terms upon which q
man SHAH receive a bequest from an
other. ana this point In the tievolution
OF property Is especially appropriate
FOR the imposition Of q 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 inher-
ftances are exempt. but the tax is so
sharply progressive that when the in.
horita ppo IA still nOt vorv lo ro., nro