New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-20
DEMOCRATIC WAR TAXES
An Unnecessary Blow to the North
Which Should Help the South.


To the Editor of The Tribune.
Sir: President Wilson has stretched
the present session of Congress like a
rubber band, which, when released, flies
off and hits somebody in the eye. The
Constitution limits the longest session
to year, beginning the first Monday
of one December and ending the first
Monday Of the next. Nevertheless the
President has practically stretched this
session to eighteen months by calling
a preliminary session and allowing no
perceptible interval between the extra
session and the regular one. At last
letting go, he is about to hit, on the
one hand, the taxpayers of the North,
and, on The other, the cotton market in
Dixie, where the sale of that staple IS
very much as it was during the Civil
War, when Lincoln did more than the
Confederate Congress and Jefferson
Davis to supply foreign mills through
exporters.
The South needs help and must look
to the North for il, as the State OF
Tennessee did to New York when relief
was found here through Secretary Nc
South should cooperate. They must
I
effectively in financing any consider
able part of the cotton crop not export
cd or wanted for domestic consump-
tion. Under these circumstances, is il
wise to vex with unnecessary taxation
those who will be called upon to aid
Southern planters?
How unnecessary these new taxes are
il shown by the Presidents own words
in his personal appeal TO the joint
houses of Congress. He contended that
the United States deposits in national
banks were not available and that the
government should not borrow. What
private firm could do business without
using its bank deposits or borrowing
Who could help the Southern planters
il they would neither use their de-
posts nor borrow? In his talk to Con-
gress the President stepped outside the
business world, out of touch with every
business man in the United States.
Had he not confined himself to Wash.
ington for so long a time, until thor
oughly jaded, and kept Congress with
him till its members were also tired
out, he would not have thought of pro-
posing new taxes while ignoring an am,
pie surplus and full authority under
existing laws TO borrow all that might
be needed before Congress, refreshed
by adjournment. should meet next win
ter and make further provision if re-
quired. The President said 20 Con-
gress:
THE Treasury itself could ges along
for a considerable period, no doubt
without immediate resort to new
sources of taxation. But at what cost
to the business of the community? APP
proximately S75,000,000 a large part OF
the present Treasury balance, is now
on deposit with national banks distrib-
uted throughout the country. II is de-
posted, of course, on call | need not
point out to you what the probable
consequences of inconvenience and dis
/ tress and confusion would be if the
diminishing income of the Treasury
should make il necessary rapidly 20
withdraw these deposits"
Everything depends or the word
"withdraw." In paying his debts a
merchant does not withdraw his bank
deposits he Uses them by drawing
Iecks against them. Only the govern
ment withdraws deposits from banks
TO make payments, and this it does
much less than formerly. For example
the day after President Wilson's inau-
guration customs receipts were depos-
tied in New York banks for the first
time in sixty-seven years. Internal