The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1915-12-10

nues Of the second half of the fiscal year
would yield the Treasury at the end OF the
year an available balance of sac. .844 .d05.4S.
The additional revenues required to carry
out the programme of military md naval
preparation of which have spoken, would,
as at present estimated, be for the fiscal year
1917, $93, 100000. These figures, taken with
the figures for the present fiscal year which
/ have already given, disclose our financial
problem for the year 1917. Assuming that
the taxes imposed by the emergency revenue
act and the present duty on sugar are to be
discontinued and that the balance at the
close of the present fiscal year will be only
500 844, COSTS, that the disbursements for
the Panama Canal will again be about $685.
100000. and that the additional expenditures
fir the Army and Navy are authorized by the
Congress, the deficit In the general fund OF
the Treasury on the Both of June 1917, will
be nearly 235000,000. To this sum at least
safe working balance for the Treasury. and
$12 600, 900 to include the usual deficiency
estimates In 1917; and these additions would
make total deficit of some $297. 100000. II
the present taxes should be continued
throughout this year and the next, however
there would be q balance In the Treasury
of some $16,600000 at the end of the present
fiscal year and deficit at the end OF the
next year of only some $50, 600, 600, or. reck-
oning In $4,000. 600 for deficiency appropria-
tions and safe Treasury balance at the end
Of the year. total deficit Of some $112.-
600. 900. The obvious moral Of the figures Is
that 1t 10 plain counsel of prudence to con-
tinue all of the present taxes or their equiv
alents, and confine ourselves to the problem
of providing $112.000.000 OF new revenue
rather than $297000.000.
Internal Taxation Preferred to Bonds.
How shall we obtain the new revenue7
We are frequently reminded that there are
many millions Of bonds which the Treasury
is authorized under existing law to sell to
reimburse the sums paid out of current reve-
nues for the construction Of the Panama
Canal; and 1t is true that bonds to the
amount of approximately 1929, 600 GOO are
now available for that purpose Prior to 1913
$1S4, ,831 $50 OF these bonds had actually been
sold to recoup the expenditures at the isth-
mus; and now constitute q considerable Item
of the public debt. But I. for one, do not
believe that the people Of this country ap-
prove of postponing the payment OF iheir
bills. Borrowing moneyFts short-sighteo
finance. 1t can be justified only when per-
manen. things are to be accomplished which
many generations will certinly benefit by and
which 1t seems hardly fair that single
generation should pay for The objects we
are now proposing to spend money for can.
not be so classified. except In the sense that
everything wisely done may be said to pc
done In the interest Of posterity as we'll as
In our own. 1t seems to me clear aictate
Of prudent statesmanship and frenk finance
that in what We are now. hope. about to
undertake we should pay asewe 60 the
people Of the country are entitled to know
Just what burdens Of taxation they are 10
carry, and to know from the outset. now.
The new bills should be paid by internal tax
alton.
To what sources then, shallNwe turnT
This 10 SO peculiarly q question which the
gentlemens' Of the House of Representatives
are expected under the Constitution to pro
pose an answer to that you will hardly ex7
pect me to do more than discuss IT in very
general terms. We should be following an
almost universal example Of modern govern
ments If we were to draw the greater pal,
or even the whole Of the revenues we neeo
from the income taxes. BY somewhat Lowell
ing the present limits Of exemption and tne
figure at which the surtax shall begin TO pe
Imposed. and by increasing. step r1y step
throughout the present graduation. the sur
tax itself, the income taxes as at present
apportioned would yield sums sufficient 10
balance the books OF the Treasury at the enc
of the fiscal year 1917 without anyWhere
making the, burden unreasonably or op-
pressively heavy. Tho precise reckonings
are fully and accurately set out In the report
Of the Secretary of the Treasury which VIII
be Immediately laid before you
And there ara many additional sources Of
revenue which can Justly be resorted 70
without hampering the Industries of the
country or putting any too great charge upon
Individual expenditure A tax of cent per
gallon on gasoline and naptha would YIELD
at the present estimated production, SlO,s
100000; tax of 20 cents per a,p morse powri sr
zines SIS 900 900; a stamp tax on bank
ehsnu.s probably $4,000, 900; q tax Of 20
cents per ton on pig iron s1ooeooGG ran aad saa
Of 25 cents per ton No on M Iaoficateo ,u4ry ~
sreat industries like this 1t ought to be easy
e 70 distribute the burdens of taxation without
making them anywhere bear too heavily or
too exclusively upon any one set OF persons
or undertakings What is clear Is, that the
Industry Of this generation should pay the
bills of this generation.
No Immediate Danger In Mind.