South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-12-07

have already given, disclose OUr 6nan-
cial problem for the year 1917 A.
Stunning that the taxes imposed by the
emergency revenue act and the pres
ent duty on sugar are 10 be discOntss-
ued and that the balance at the close
OF the present fiscal year viii be only
S20.644605.7S, that the disbursements
FOR the Panama canal viii again be
about S2J.OO00OO and that the add
tionaI expenditures for the army and
navy are authorized by the congress,
the deficit In the general fund OF the
treasury on the 3Oth Of June, 1917,
viii be nearly S235.OOO COO To this
sum at least 100000 should be add
ed 10 represent n safe working balance
for the treasury and S12.OOO0OO 20 in
clude the usual deficiency estimates In
1917. and these additions would make
n total deficit Of some 500. 600. GOO. II
the present taxes should be continued
throughout this year and the next,
however. there would be a balance In
the treasury OF some ST6.jOO.OOO az
the end OF the present fiscal year and
q deficit M the end Of the next year OF
only some S50OOOOOO or, reckoning I'm
So. 100000 for deficiency appropria-
tons and a safe treasury balance at
the end OF the year a total deficit Of
some S112OOO.OO0. The obvious moral
Of the figures is that IL Is a plain cOun-
sci Of prudence TO continue all OF the
present taxes or their equivalents and
confne ourselves 10 the problem OF
providing $112OOOOOO OF new revenue
rather than 1907. 100000.
How shall we obtain the new rev
enue2 We are frequently reminded
that there are many millions Of bonds
which the treasury Is authorized under
existing law 10 sell TO reimburse the
sums paid out OF current revenues for
the construction OF the Panama canal,
and it is true that bonds FOR the
amount OF do. $4,000 are now avail
able for that purpose. Prior to 1913
S13SOOOOOO OF these bonds had &C
tually been sold 10 recoup the expendi-
lures at the isthmus, and now con-
stitute a considerable item or the pub
lie debt. But / for one do not believe
that the people OF this country approve
Of pOstponing the payment Of their
bills. Borrowing money is shOrtsight-
ed finance. 1t can be justified only
when permanent things are TO be &c
cOmplished which many generations
will certainly benefit by and which It
seems hardly fair that a single genera
ton should pay for. The objects we
are now proposing TO spend money for
cannot be so classified, except in the
sense that everything wisely done may
be said to be done In the interest OF
pOSterity as well as I'm our own. It
seems TO me clear dictate oS pru-
dent craftsmanship and frank finance
that in what we are now. 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 10 know from the
outset now. The new bills should be
paid by internal taxation.
To what sources, then, shall we
turn? This is so peculiarly a question
which the gentlemen OF the house OF
Representatives are expected under the
constitution to propose an answer 20
that you viii hardly expect me 10 do
more than discuss II in very general
terms We should be following an al
most universal 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 pres
ent limits of exemption and the figure
at which the surtax shall begin TO be
imposed and by increasing step by step
throughout the present graduation the
surtax itself, the income taxes as at
present appOrtioned would yield sums
sufficient 70 balance the books OF the
treasury ar the end OF the fiscal year
1917 without anywhere making the
burden unreasonably or oppressively
heavy. The precise reckOnings ara
fully and accurately set out I'm the re-
port OF the secretary Of the treasury
which VIII be Immediately laid before
you.
And there are many additional
sources Of revenue which can Justly be
resorted TO without hampering the in
dustries OF the country or putting any
too great charge upon individual ex-
penditure. A 1 per cent tax per gallon
on gasoline and naphtha would Yield.
at the present estimated production,
100000. tax OF 30 cents per horse
power on automobiles and internal ex-
plosiOn engines S15.OO0O0O. a stamD
tax on bank checks probably $4,000
600, tax OF . cents per ton on pig
iron 100000, a tax Of 30 cents per
ton on fabricated from and steel proba-
bly, 100000 IA country OF great
industries Ike this It ought TO be easy
TO distribute the burdens Of taxation
without ma ing them anywhere bear
too heavily OF too exclusively upon any
one set OF persons or undertakings.
What IS clear IS that the Industry OF