New-York tribune., 1909-04-14
RbVENUE THE PROBLEM
SENATE My HEAR FROM
PRESIDENT.
He Insists That 4ny Tariff Bill
Must Pro1ide Sufficient Funds for
Needs Of GoT6rRment.
HILMI PACHA.
Ousted from post OF Grand Vizier.


Washington. April 13.-"Is II possible that the
Aldrich substitute for the Payne bill will pro
duce sufficient revenue" This is the question
which starts every political discussion In Wash
tngton to-day. and those who recall the fact that
the President has said that n the tariff bill did
not give promise of ample funds to run the
government Congress would heard from him
with forceful recommendation Of some form
Of income tax. preferably tax on the dividends
~ corporations. are asking viii the President
urge the restoration Of the inheritance tax OF
the adoption Of his corporations dividend tax2'
The President has expressed himself in
equivocsl terms with regard n the revenue
features Of the tariff bill on this point he has
said.
In the making Of 4 tariff bill the prime mo
tive is taxation. and the securing thereby ~
revenue The trainers Of the tariff bill must.
Of course have in mind the total revenues likely
10 be produced by it, and 50 arrange the duties
TO secure adequate income. Should il be
Impossible 70 do by import duties. neV kinds
of taxation must be adopted and among these
recommend a graduated inheritance tax.
correct in principle and as certain and easy OF
collection.
Nor does the President believe in penurious-
ness in the affairs OF the nation, Indicated
by his further statement.
. The obligation On the part Of those RESPONSE
BILE for the expenditures made to carry the
government to be economical s possible and
to make the burden OF taxation light pos
sibla is plain. and should be affirmed in every
declaration of government policy. But when
the desire to win the popular approval leads To
the cutting off Of expenditures really needed 10
make the government effective md to able
il 10 accomplish its proper objects, the result
is much to he condemned the waste Of
government funds in unnecessary expenditure
The scope of modern government in what II
and ought to accomplish for its people has
been widened far beyond the principles laid
down by the old laissez falre school Of political
writer's and this widening has met popular ap-
provaL
From these assertions it is assumed, and not
without reason. that II the official estimates of
the experts who now calculating the proba-
BILE income under the Senate substitute show
prospect of insufficient revenue, President Taft
will send for the Senate leaders and reiterate
his views with regard to the probable needs of
the government and the uselessness of enaCting
a new revenue measure which viii be made
quate meet those necessities.
It if pointed out, the other hand that as
sertions regarding the revenue producing feat
ures of the Senate bill seem to he based on the
assumption that all reductions of duties mean
q proportionate reduction of revenue, whereas,
as is well known il not infrequently happens
that such reductions lead to increased importa-
tion and consequently to decreased revenue.
Moreover Senator Aldrich is a wizard at fig
and expert on the tariff and the reve-
nues to be derived therefrom. He believes that
the bill he has reported will yield sufficient
enue and by many his belief is accepted as suf-
fcient guarantee. Incidentally, the method
of valuation will lead TO the collection OF more
revenue than has hitherto been possible. OF
course even Mr.. Aldrch cannot know definitely
how much revenue may be counted from the
Senate substitute until the experts have com
pleted their calculations. which are so Comp-
Tod that thpV will
erai days But in the mean time the Senator
from Rhode Island expresses his conviction tina [
the Senate bill will produce abundant revenue
There is a strong intimation that if the calcu-
lations of the experts should show the reverse
the first consideration of the Finance Commit
tee will be given TO Ihe advisabty of increas-
ing the internal revenue tax on beer. The dis
position of the committee has already been
by the increases in the taxes on
imported spirits, wine and beer, while the fact
that the committee is not blind 10 the popular
features of the revision is shown by the restora-
tlon of the Dingley duties gloves and hosiery
1t is appreciated that in many quarters the
be popular, and if additional revenue has II be
provIded for only the conviction that the brew
ing industry cannot stand further taxation will
prevent an increase in that direction
Efforts have been made ascertain the |
opinion Of the President on the Senate sub
stitute for the Payne bill bat without success.