Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1907-11-27
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81 ==OF THE DAY -
OBSERVATION-DISCLOSURES
Result. Of ovcrt.1.tion.

Results OF Overtaxation.
There Is to be no special session Of
Congress to relieve the financial stu
alton. This Is the announcement from
Washington, but 1t is really unneces-.
sary, as no sensible person expected the
President to do 50 absurd thing as to
convene Congress week or two in ad-
vance Of Its fixed day of meeting. Little
could be done to relieve present condi-
lions In that brief time.
Nor is there any reason to look for
much in the way Of legislation at the
regular session that will affect the e1-
listing situation. This panic, If that is
what the inconvenience and harass-
ment the public Is now suffering should
be called, will have passed away before
the cumbersome machinery of Congress
can be brought to the point Of definite
action.
Yet Congress can, IL 1t will, do much
to prevent renewal of our present
troubles in the future, since they are In
large part the product Of laundering
legislation. The policy and methods Of.
the Federal Government are largely If
not solely responsible for the existing
distrust that has stopped that free flow
of currency which is necessary to. the
convenient conduct of business. 1t Is
the natural outcome Of policy of tax
alton which gathers greater revenue
than the requirements Of government
economically administered demand, and
of methods which pile up the money
thus squeezed from the pockets Of the
people In repositories where 1t cannot
meet the real need of the country.
The obvious remedy called for is to
put an end to overtaxation and to force
wiser methods Of handling the money
taken In SO that 1t will be put back
into circulation more promptly and 60
where It Is really needed. We need to
get rid of the system which puts upon
one mantle person who happens to be
secretary Of the treasury at the time
the responsibility of distributing hun
dreds Of millions Of treasury surplus
among such banking Institutions as his
fallible judgment may select to be the
recipients Of governmental favor.
Something like six months ago The
Republic gave warning Of the increas-
ing menace in the enormous and stead
lily growing treasury surplus. 1t was
evident then that the surplus would
grow to at least $500, 900, 900 by the end
Of the current fiscal year, and no great
measure Of financial wisdom was need
ed to forecast coming trouble as the
certain result. So great sum Of mon.
ey cannot be boarded in the treasury
vaults with safety. On the other hand,
no greater safety Is to be looked for If
the secretary of the treasury ls to lend
this vast accumulation, without inter-
est, at such times, in such ways and to
such institutions us he may deem ad-
visable.
If there Is doubt of the absolute idi-
ocy of the course we are following, con-
slider what 1t would mean If the treas
ury surplus should be doubled or qua
drupled. Imagine the Federal Govern
ment drawing three hundred millions
more, or three times three hundred mil
lions, out of tho pockets of the people,
and the secretary Of state struggling
day by day to find way to get the
money back into the channels of trade
by placing 1t as MISUNDERSTANDING
deposit in the banks. Is there any man
80 wise and discreet that 1t would be
prudent to intrust him with unre-
strained control of twelve hundred mil
lions Of money?
1t Is unnecessary to indulge In appre-
hension as to the honest conduct Of the
public official intrusted with this tire
mendous responsibility. Bad Judg-
ment and indiscretion can work Just as
much harm in the administration of
this great power as downright dlshon-
esty in its exercise. The secretary,
whose horizon in the west is bounded
by the Allegheny Mountains, can hurt
the great and growing region beyond
Just as surely as one who would de-
liberately aim to throttle Its prosperity.
No scheme for providing elastic cur
rency, no plans for shackling the lndl-
vidual States by national charters for
corporations will avail 10 remedy our
troubles. Nothing will effectively serve
except putting an end to overtaxation.
The government must stop drawing a
needless revenue through the customs
and internal tax collectors. When that
Is done 1t will not be necessary to resort
to complicated ways Of getting the
treasury's unneeded money back into
circulatlon.-St. Louis Republic.