Middletown transcript., 1915-12-11

bur commerce even where the doors are
wide open ana our goods desired. Such
a situation IL 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 meF-
chant marine would give It, but also that
the American hemisphere as a whole
should enjoy like independence and self
sufiiciency, II It 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 ef-
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 clothe
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
achieved every other like task amongst
US in the past, with admirable enterprise.
intelligence and vigor; and 1t seems to
me manifest dictate OF wisdom that we
should promptly remove every legal OBJ
stacle that may stand in the way of this
much to 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. 1t must embark upon 1t by de-
grees, as the opportunities Of trade de-
velop. Something must be done at once;
done to open routes ana 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 quickened
and It is evident that only the govern
ment can undertakessuch 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. 1t should take the first
steps and should take them at once. Our
goods must not lie piled up at our ports
and stored upon sidetracks in freight
cars which are daily needed on the roads;
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
opportunity which may never return
again II 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-
gress, but modified in some essential par
ticulars. 1 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 1 have outlined, and for
the general policy of adequate prepara-
volve of course very large additional ex-
penditures of money-expenditure which
will considerably exceed the estimated
revenues Of the government 1t 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 1t may be
wise or possible for me to suggest. l am
ready to believe that 1t would be my duty
to do so in any case; and 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-
- H.n.
| 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 thirtieth of June last there was
| an available balance in the general fund
of the treasury of S1O4 17O. .1O5.7S. 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. 1916 and that the present duty oi
one cent per pound on sugar will be dis
continued after the first of May, 1916
will be 500 365, 500. The balance of JUNE
last and these estimated revenues come
therefore, to a grand total of STA, ,535 sos. .78
The total estimated disbursements for tn,
present fiscal year, including $25,000, ,0O
for the Panama canal, 81, 1000, 900 for prob
able deficiency appropriations and $50,
900 for miscellaneous debt redemptions
will be 1891 900; and the balance in thu
general fund Of the treasury will be re
duced to $2O,644, 6057S The emergencl
revenue act II continued beyond its pres
ent time Limitation, would produce dur
ing the half year then remaining, abou
forty-one millions. The duty of one cen
per pound on sugar, If continued, woult
produce during the two months of tn
| iii. -
May, about fifteen millions. These tw
sums, amounting together to $56,00O ,0O(
II added to the revenues Of the secon
half OF the fiscal year, would yield tn
treasury at the end of the year an avail
able balance of $76,644, COSTS.
The additional revenues required t
carry out the program of military an
naval preparation of which 1 have spok
en-. would, as at present estimated, b
: for the fiscal year 1917, $93, 800, 900. Thos
figures, taken with the figures for tn
present fiscal year which have alread
P given, disclose our financial problem fo
] the year 1917.
r How shall we obtain the new revenue
Y 1t seems to me a clear dictate of prI
= that in what we are now, I hope, abot
e to undertake we should pay as we e
n The people of the country are entitled
s know just what burdens of taxation the
t are to carry. and to know from the outse
# now. The new bills should be paid by IL
t ternal taxation.
l. To what sources, then, shall we turI
e We would be following an almost un
II versal example of modern governmen
g If we were to draw the greater part
lie even the whole of the revenues we nei
re from the income taxes. BY somewh
" lowering the present limits of exempt,
ID and the figure at which the surtax sh,
l. begin to be imposed, and by increasin
1t step by step throughout the present gra
Id uation, the surtax itself the income tax
IN as at present apportioned would vie
sums sufficient to balance the books
e. the treasury at the end of the fiscal ye