The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-04-26

Ni'htfW the clttlEC hScal policy OF The
n,iion. They proposed 10 make an 10
eomy taX thc means OF accurately ad-
Ju4tlng the funds to be raised by tax
alton 10 correspond with necessities
fcr government expenses
The report. submitted rs Chairman
Underwood. after outlining the opera .
tons OF the proposed income tax.
said;
The revenue from all income taxes
readily respond TO changes OF rates
and the latter can be raised or lowered
within a few days time without busi-
tariff changes occasion. 1t is believed
ness disturbances such as general
that budget or other effective sys-
tenn By which congress may be able
closely TO calcuiata and determine in
advance forthcoming expenditures will
soon be devised. in which event II
should becomS easy to maintain a
close balaace between expenses and
revenues such as Is practiced In most
other civilized countries. With other
sources Of revenue revised to an hon.
est and fixed basis and the income tax
permanent part Of our revenue sys-
TEN and at all times affording e. sub
stantial amount OF revenue. congress
could. and IL necessary should. an
nually raise or lower the income tax
rates In such manner as would prevent
either n deficit or a surplus I'm the
treasury. This combined tax system
would AFFORD Justice In taxation, fiexi-
oiiity and stability OF revenue and
rigid economy In expenditures"
The Democrats. outlining their
policy In the preparation OF the bill.
announced an absolute disregard for
the cost Of production theory as regu-
latory Of tariff rates and declared that
In the pending bin they had attempted
TO eliminate protection of profits and
to cut or duties which enable manu-
facturers TO exact a bonus for which
no equivalent is rendered.
ITO introduce In every line of indus
try competitive tariff basis providing
for substantial amount OF importa-
tiOn to the end that no concern shall
be able to feel that 1t has monopoly
OF the home market gained other than
through the fact that Il Is able to
furnish better goods at lower prices
than others
Which Is the wiser course for our
government 70 take" the report ask
ed. the one, that demands the pro-
iee'ion OF profits. the continued policy
Of hot house growth for our indus
tries. the stagnation OF development
that follows where competi' ion ceases
or. on the other hand. the gradual
and insistent reduction of our tarifr
laws to q basis where the American
manufacturer, must meet honest COM
petition. where he must develop his
business along the best and most eco
nomical lines: where. when he fights
NJ home 20 control his market he Is
forging the way IN the development
of hts business To- extend his tradc ia
ihs markets of the world? In oar
Judgment tho future EroNtt of nur
Sreat iudustrics lies beyond The sca-, q"
detailed taulo was prcfcntcd
Hh"wing. by schedIlts, thc total rcvc-
ru' secured uUucr the payn" laV fhr
1919 snd the estimated revenue under
tn. new itll for %. month period.
Tho table showed that iu iaI2. I159.-
s1S.Slt worth of Imports pI,d s3yi..
6sI.03a in duties. a. An ,quyaI.ut
average al valorem rate II 4UIZ per
cent IL estimated that under the new
bill. $1,000. $4,000 worth OF imports
would pay s266. .7O1 900 in duties at an
average ad valorem rate OF $3.50 per
cent Thus the new hill would raise
$37.s96,00O less than the present law
The saving thus made in revenue
collections" said the report. is only
suggestive OF the immensely greater
saving secured To the public by the
probable change In prices resulting
from the removal of the excessive
rates OF the present Law.
1T In n striking fact" the report
declared. that during the years sub
sequent to the renewal OF the policy
Of high protection In 1897 there has
been a radical transformation OF
American economic life ga many d.
rectlons and that In most cases n con-
nectiOn between the rates OF Droduc-
ton and the development of unfair
or objectionable conditions has been
fully established.
The increased cost of living was
mentioned a. the most striking eco
nomic change needing adjustment
through the tarifr and table was
anhrniffaa ahnwing tho "a