The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-03

guaranty and upon conditions care
fully prescribed by the government
Such emergency issue must be based
ON adequate securities approved by the
government and must be issued under
a heavy tax. This would permit cur
rency being issued when the demand
for II was urgent, while securing its
retirement as the demand fell off. 1t
is worth investigating to determine
whether officers and directors Of ma
tional banks should ever be allowed 10
should be subject to the same supervi-
sion as banks. Legislation to this effect
should. he enacted for the District OF
Columbia and the territories.
Yet we must also remember that
even the wisest legislation on the sub
ject can only accomplish n 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 guar
antee an individual against the results
of his extravaganza. When an indi.
vidual mortgages his house to buy an
automobile he invites disaster, and
when wealthy men or men who pose as
such or are unscrupulously or foolish
ly eager to become such indulge In
reckless speculation, especially IL it Is
accompanied by dishonesty, they jeop-
ardize not only their own future, but
the future of all their innocent fellow
citizens, for they expose ther-whole
business community to panic and dis
trcss.
Revenue.
The income account OF the nation Is
in most satisfactory condition. For
the six fiscal years ending with the
1st of July last the total expenditures
and revenues of the national govern
ment, exclusive of the postal revenues
and expenditures, were, in round num-
bers. revenues $3,4G5, 100000 and ex-
penditures 215,000,000. The net ex-
cess of income over expenditures, In
cluding i'm the latter the $50,000,000 ex-
pended for the Panama canal, was
S19O,OO0,OOO for the six years, an aver
age Of about S31 100000 year. This
represents an approximation between
income and outgo which ii would be
hard to improve. The satisfactory
working OF the present tariff law has
been chiefly responsible for this ex-
cellent showing. Nevertheless there is
an evident and constantly growing feel
ing among our people that the time is
rapidly approaching when our system
OF revenue legislation must be revised.
The Tariff.
This country is definitely committed
to the protective system, and any ef-
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 Ii is prob
ably well 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 pro-
vided and that our foreign trade Is en-
couraged. There must always be 40
a minimum tariff which will not only
allow for the collection Of an ample
revenue, but which will at least make
good the difference i'm 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
and 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
i'm the year preceding a presidential
election, because. as a matter OF fact,
experience has conclusively shown
that at such time ii 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
hertance tax should receive the care
full attention of our Legislators. In my
Judgment. both Of these taxes should
be part of our system Of federal taxa.
ton. I speak diffidently about the In
come tax because one scheme for an in
come tax was declared unconstitution-
al by the supreme court, while in addi-
ton it is difficult tax to administer
i'm 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. for IL so evaded 1t would
Of course be worse than no tax at all.
as the least desirable Of all taxes Is
the tax which bears heavily upon the
honest as compared with the dishonest