The Monticellonian., 1915-12-09

wide open and our goods desired. Such a situation is not to be endured. It is of capital importance not only that the United States should be its own carrier on the seas and enjoy the economic in dependence which only an adequate mer- chant marine would give fl. but also that the American hemisphere as whole should enjoy like independence and self sufiiciency. if 1t is not to be drawn into the tangle of European affairs. Without such independence the whole question of our political unity and self-determination is very seriously clouded and complicated indeed
 Moreover we can develop no true or et- fective American policy without ships of our own-not ships of war. but ships of peace. carrying goods and carrying much more: creating friendships and render ing indispensable services to all interests on this side of the water. They must move constantly back and forth between the Americas. They are the only shuttles that can weave the delicate fabric of sympathy. comprehension, confidence and mutual dependence in which we elothe our policy of America for Americans.
 Ships Are Needed.
 The task of building up an adequate merchant marine for America private capital must ultimately undertake and achieve, as it has undertaken and achieved every other like task amongst Us in the past. with admirable enterprise, intelligence and vigor; and 1t seems to me a manifest dictate of wisdom that we should promptly remove every legal ob- stacle that may stand in the way of this much 10 be desired revival of our old in- dependence and should facilitate in every possible way the building, purchase and American registration of ships. But cap ital cannot accomplish this great task of a sudden. It must embark upon It by de- grees, as the opportunities of trade de- velop. Something must be done at once: done to open routes and develop oppor- tunities where they are as yet undevel oped; done to open the arteries of trade where the currents have not yet learned to run-especially between the two Ameri- can continents, where they are. singularly enough, yet to be created and quiekened; and 1t Is evident that only the govern ment can undertake such beginnings and assume the initial financial risks. When the risk has passed and private capital begins to find its way in sufficient abund- ance into these new channels. the gov ernment may withdraw. But 1t cannot omit to begin. It should take the first steps and should take them at once. Our goods must not lie piled up at our ports and stored upon sidetraeks in freight ears which are daily needed on the roads; must not be left without means of transport to any foreign quarter. We must not await the permission of foreign ship owners and foreign governments to send them where we will.
 With a view to meeting these pressing necessities of our commerce and availing ourselves at the earliest possible moment of the present unparalleled opportunity of linking the two Americas together in bonds of mutual interest and service. an
 
 again If we miss 1t now, proposals will be made to the present congress for the purchase or construction of ships to be owned and directed by the government similar to those made to the last con- gross, but modified in some essential par ticulars l recommend these proposals to you for your prompt acceptance with the more confidence because every month that has elapsed since the former pro- posals were made has made the necessity for such action more and more mani festly imperative.
 Question of Finance.
 The plans for the armed forces Of the nation which I have outlined. and for the general policy of adequate prepara- ton for mobilization and defense in- volve of course very large additional ex penditures of ey-expenditures which will considerably exceed the estimated revenues of the government. It is made my duty by law, whenever the estimates of expenditure exceed the estimates of revenue to call the attention of the con gress to the fact and suggest any means of meeting the deficiency that it may be wise or possible for me to suggest I am ready to believe that 1t would be my duty to do so in any case; and I feel particu larly bound to speak of the matter when 1t appears that the deficiency will arise directly out of the adoption by the con gress of measures which I myself urge 1t to adopt Allow me, therefore, to speak briefly of the present state of the treasury and of the fiscal problems which the next year will probably dis close
 on the thrtieth of June last there was an available balance in the general fund of the treasury of s104 .170, l05.7S. The to- tai estimated receipts for the year 1916, on the assumption that the emergency revenue measure passed by the last con- gress will not be extended beyond its present limit, the thirty-first of Decem- ber 1915. and that the present duty of one cent per pound on sugar will be dis continued after the first of May, 1916, will be s670 365 800. The balance of June last and these estimated revenues come therefore, to grand total of $774. .535 o5.7S The total estimated disbursements for the present fiscal year, including $25. GOO 00J for the Panama canal. SIP GOO. GOO for prob able deficiency appropriations and s50 GOO for miscellaneous debt redemptions. will be s753. .S91 GOO; and the balance in the general fund of the treasury will be re- duced to s20.644605 The emergency revenue act, if continued beyond it's pres ent time limitation, would produce, dur ing the half year then remaining. about forty-one millions. The duty of one cent per pound on sugar, if continued. would produce during the two months of the fiscal year remaining after the first of May. about fifteen millions. These two sums. amounting together to s56,oo0000, if added to the revenues of the second half of the fiscal year, would yield the treasury at the end of the year an avail able balance of SIG 644. .605.7S.
 The additional revenues required to carry out the program of military and naval preparation of which l have spok- en. would, at present estimated. be for the fiscal year 1917. s9S. 500. 900. Those figures, taken with the figures for the present fiscal year which l have already given disclose our financial problem for the year 1917
 How shall we obtain the new revenue? It seems to me a clear dictate of pru- dent statesmanship and frank finance that in what we are now. I hope, about to undertake we should pay as we go The people of the country are entitled to know just what burdens of taxation they are to carry, and to know from the outset now, The new bills should be paid by in ternal taxation.
 To what sources. then, shall we turn 3 We would be following an almost uni versal example of modern governments if we were to draw the greater part or even the whole of the revenues we need from the income taxes. By somewhat lowering the present limits of exemption and the figure at which the surtax shall begin to be imposed. and by increasing step by step throughout the present grad uation. the surtax itself, the income taxes as at present apportioned would yield sums sufficient to balance the hnnl1s nf