The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1914-10-15
THE REAL REASON
FOR THE NEW TAX
Representative Anderson Points Out
How the Democrats Have Blundered

z
lation and wasteful administration b
the Democrats have necessitated III
passage Of an emergency revenue bi
placing a Sl00,000,000 tax on th
people, according to a statement civ
en- out today by Representative Sydne,
Anderson, of Minnesota, formerly
member of the Ways and Means Com
lmittee. Mr.. Anderson declared tina
such a measure would have bee
necessary even though Europe had no
been plunged into war, and points ou
that President Wilson admitted in hi
revenue message that the war was no
wholly responsible for decreasing
funds.
1T ought not to have been neces
sary to pass a revenue bill at thi
time, Notwithstanding the European
war;" said Mr.. Anderson. I'm m,
judgment there is no doubt that if {
proper revenue policy based upor
facts and reasonable economy in ma
tional expenditures had been pursued
there would now be no necessity fol
the imposition of direct tax upon &
people already suffering under bur
den of high price.
"We are now reaping the harvest
that unwise legislation and admins.
tration of the last eighteen months
made inevitable. The President in his
recent message admitted that the
European war did not cause all the
decrease, his reference to it being that
it was due chiefly to the war situa-
tion. Accepting the Presidents state
ment at its face value and inquiring
into the other causes, it appears that
they may be grouped under two heads
First, the failure of the democratic
revenue policy and second, its profit
gate and extravagant waste Of public
funds. The Underwood tariff reversed
our tariff policy from one of protec-
ton to one chiefly of revenue. Many
things were made free, and other
duties reduced. 1t is obvious that to
raise approximately the same amount
of revenue from these lower duties,
importations must be greatly increas-
ed, In other words, a premium was
offered to foreigners to compete with
American producers.
''There being no adequate informa-
tion as to the probable effect Of duties,
or as to the point at which there
would be the greatest importation, the
whole Underwood bill was a hit and
MISS" and its result as a matter of
revenue wholly conjectural. Subse-
quent to the first two months of oper-
alton under the Democratic tariff law,
during which time there was great
influx of importations held in bond,
there has been a steady falling off of
revenue Notwithstanding greatly in
creased importations.
"The income tax, which fell upon
approximately $4,000 out of some
millions of tax payers who might fair
ly be expected to contribute to the ex-
penses of the government, was a dis
tinct failure as revenue producer.
Both of these measures were depend
ent for their success in large measure
upon the continued prosperity Of the
country. But there was an immediate
depression of business. Thousands of
men were thrown out of employment
and the purchasing power of the Am
erican public was greatly curtailed.
At the same time there was very
falling off in incomes in
American securities. The failure of
revenue under these circumstances,
wholly created by the Democratic
party, was absolutely inevitable.
"The virtue of a policy Of economy
IN the face Of these decreasing reven-
les is apparent. Yet the expenses of
he government in every department
nave increased enormously. Thous-
ands of employees have been added TO
he payroll. New activities in every
direction have been entered upon,
greatly increasing the expenditures.
rhe establishment Of twelve regional
ranks instead of four, FIVE of the |
welve in the south; the sending Of the
leet to Vera Cruz, the proposed TWEEN
y-fve million dollar apology to
Columbia, the proposed iifty-three
million dollar river and harbor bill,
ire fair examples of the unwarranted )
Of the last eighteen
months.
''In addition it is proposed to spend
ONE twenty-five million dollars in aid
4 vocational education and about an
quail amount in federal aid to good
Dad building. The proposed establish
nent Of federal grain inspection and
warehouse systems, entailing enor-
nous expense, are but samples of the
undertaken in the face Of
ailing revenues. However desirable