Middletown transcript., 1914-10-24
TO PAY COST OF ID TARIFF

The country might as We'll be homes
with itself. President Wilson has chlleC
upon Congress to levy ''war loan" o.
sl0O, 600, 600, which marks the crisis il
the affairs Of the present Democratic
administration. That this great sum O.
money is needed to make up the defci
caused by decreased revenue due to the
European war no well-informed person
will believe. The present fnancia
troubles of the administration begar
eight months ago and have increased
rapidly ever since. In order to show
the exact situation it is necessary to re
view the Tariff situation prior to last
August, when the first effects of the
war were felt. For the five months be.
ginning March 1, when the Democratic
Tariff went into effect, until the last
day of July, conditions were nomal, and
they afford an honest comparison with
the same five months of the previous
year under Protective Tariff.
During these five months the importa-
tions from abroad to the United States
amounted in value to $838, 900, 900. For
the same period in 1913 the importations
amounted to SOS, 10000 This is an
increase during the Wilson administra-
ton of nearly 20 per cent and an in
crease of $26, 900, 900 month. For this
period of the Democratic Tariff the ex-
ports from the United States fell off 10
per cent. in comparison with the same
months in 1913. This means that the
increased importations and reduced ex-
portations took large quantity of work
and wages from American workmen.
For these five months the balance of
trade ran against the United States, and
continued to do so during all of the
period. Upon this basis the general
deficit to the United States Trea- ury,
due to the failure of the Tariff to pro-
vide sufficient revenues, would amount
to $100,0OO,OOO a year-a significant
figure in view of the fact that this is
the amount asked for by the President
in his plea for war taxes"
If there had been no European war
practically the same deficit would have
been encountered, but in all probabil-
ity the administration would not have
had the assurance to put such a system
of special taxation into effect as is
now proposed. The war is merely an
excuse. 1t is a subterfuge eagerly ac-
cepted by the administration to fool the
people and cover up the real causes of
the Governments financial embarrass-
ment. President Wilson in his mes
sage to congress was very careful to
state that ''during the month of Aug
ust' there was a falling off in Gov
erpment revenues. He made no refer
ence to the fact that August was no
exception to all the other months dur
ing which the country has had the new
Tariff. 81 need not tell you'', says the
President, to what this falling off is
due. 1t is due in chief part, not to the,
reductions recently made in the Gus
toms duties, but to the great decrease
in importations. That is for the
month of August. The war had effect
only in August Again, the President
is suddenly solicitous for the business
of the country. He says the Treasury
could get along for awhile, "but a.
what cost to the business of the com
munity?" Certain financial arrange
ments might be made to get the money
he argues, but ''it might become ne
cessary at time which could not be |
controlled or determined by the conven-
ience of the business of the country
Do the President and his friends |
imagine that the sensible people of |
this nation can be fooled by this sort |
of sophistory? Surely they cannot
place such faith in the credulity of in
telligent Americans. Where are the |
blessings of low Tariff when the people
must make up the deficit by paying
extra for gasoline, beer, soda water,
theater tickets, chewing gum, etc.
For it must be remembered that the
estimated deficit in governmental rev
enues is not based on the imports and
exports of the month of August but
on the five months previous to the out
break Of the European war. The Dem
ocratic Tariff without special taxes
would have bankrupted our Govern
ment, war or no war. The last low
Tariff, under the Cleveland administra-
ton, had exactly the same effect, only
in that case instead Of special taxes the
administration issued more bonds.
President Wilson is more fortunate
than President Cleveland, for he has
the war in Europe to hide behind. The
new internal revenue taxes are to
make up the natural and inevitable
deficit of a Democratic Tariff, and the
European struggle makes it convenient
to refer to it as ''war tax. '-Kannas
City Journal.