Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-05
ECONOM|CPO[ICy
UNDERGOES CHANGE
Revolution of Conditions to
Follow Legislation by the
Present Congress.
PROTECTION GIVES WAY
TO TARIFF FOR REVENUE
Direct Tax on Incomes Substituted
for Indirect Burden-New
Banking System.

When the democratic caucus renorts
the tariff bill to the Senate within the
next forty-eight hours and a date ir set
for its actual consideration, enter the
second stage Of proceedings Destined
to result In radical revolution of the
economic system OF the United States
government
Substitution of direct taxation I'm part,
through income tax. for the long-existen.
plan OF indirect taxation: rejection of
the policy OF protective tariff for protee-
tons sake and application Of the tariff
for revenue-raising purposes only IRE
embodied in this revolution.
This IL to be followed by pronounced
change In the banking and currency syg-
tenn under which the country has for
years operated. In the placing Of the
national bank resources and credits I'M
der closer governmental. and. 1t II al
legged. partially political control. and by
Early in Operation.
These far-reaching alterations In the
economic and financial systems under
which business is to be henceforth con-
uuSlcu, affecting Tic uunDlSSC clt1ZcnH
as we'll as the most powerful corpora
tons. are expected to go into effect in
a very few months possibly as early as
October /. The date depends upon the
mood Of the Senate and the will of the
small groups OF men constituting the
conference committees which will
finally frame the new laws for presi-
Dental approval
Representatives comment upon the
fact that on the eve OF such mo-
nomic policies there should be such ap-
parent indifference on the part Of the
country at large. Outside Of the manu-
facturers and importers directly in
volved in the tariff and the bankers con-
cerned in the currency law, they say
they hear very little from their con-
stituents about the impending legisla-
ton.
They assign two reasons for this
seeming apathy. As to the tariff, they
Semanded 'o radical III rednctinns In nec ta1irf
schedules. and is complacent over the
prospect of getting them. AS to the
currency. they think the rank and file
are uniformed upon the subject. and are
content to let the experts in Congress
work out the changes. That's what they
were elected to Congress for, is what
There is some doubt I'm the minds of
congressman as to howe the country Will
take the income tax requirements. 1t is
a fact that there has been less discussion
~
public press OF this question than OF the
tariff
Other Questions Uppermost.
The public mind has been occupied with
ivestigations. with sugar lobbying and
"Mullhall-ing 1t is said, rather to the
exclusion of contemplation of impending
changes in the system of taxation. When
the law actually confronts them, requir-
ing every man with an income Of $4,000
or $1,000 or whatever sum is fixed, to
yield up a percentage of his income in
cash as a tax, the public sentiment may
be sounded.
All that the statesmen have to go upon
now is the fact that the country by an
overwhelming vote through the state
legislatures. supposedly representing pop
ular sentiment. practically unanimously
ratified the constitutional amendment
making this legislation possible. and they
assume that in this regard too, the peo-
rle are being given what they have been
demanding.
So, the Congress and the administration
are going steadily ahead to carry out the
Will of the people as expressed at the
polls last November" If it is urged that
the party now In power came In by a
"huke' and does not represent an actual
majority of political sentiment. democrats
answer that they have every reason to
believe that the republican progressives
whose detection assured the democratic
victory, are as eager for tariff reduction
and the income tax as any democrat.
Nothing short of another election will
precipitate the floating elements of spec
uiation and fact in that argument. BY
the same token the republicans are will
ing that the democrats shall go as far as
they like and as swiftly as may be with
their policies, and give them a "try-out''
on the country.
DBL