The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1915-12-08

To this sum at least $50. 900 should be
added to represent q safe working ball
ance for the treasury and 81. 900 900 to in
clude the usual deficiency estimates in
1917. and these additions would make
total deficit of some s2s7, zoo. 600 II the
present taxes should be continued
throughout this year and the next, how.
ever, there would be balance In the
treasury of some s76.5oO.0oo at the end of
the present fiscal year and q deficit at
the end of the next year of only some
so. 000. 900. or. reckoning in s62. 600 for
deficiency appropriations and safe treas
ury balance at the end of the year, a
total deficit Of some $112. oooo0o. The OBJ
vious moral Of the figures is that II is a
plain counsel of prudence to continue all
Of the present taxes or their equivalents
and confine ourselves to the problem of
providing s112, 600 600 Of new revenue rath-
er than $2s7. 100000.
Millions Of Bonds.
How shall we obtain the new revenuef
We are frequently reminded that there
are many millions OF bonds which the
treasury II authorized under existing law
to sell to reimburse the sums paid out Of
current revenues for the construction Of
the Panama canal, and tt Is true that
bonds for the amount OF $222, 600 are
now available for that purpose. Prior to
1918 SIS. 100000 Of these bonds had actually
been sold to recoup the expenditures at
the isthmus. and now constitute a con-
siderable item of the public debt. But I
for one do not believe that the people of
this country approve of postponing the
payment of their bills. Borrowing money
is shortsighted finance. It can be justi-
fed only when permanent things are to
be accomplished which many generations
.~-sN fl. "a a.
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 In our own. 1t seems to me clear
dictate of prudent 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 to know
from the outset now. The new bills
should be paid by internal taxation.
To what sources. then shall we turnf
This is so peculiarly a question which the
, gentlemen of the house Of representatives
are expected under the constitution to
| propose an answer to that you will hard
iy expect me to do more than discuss II
| In very general terms. We should be fol-
| lowing an almost universal example of
modern governments II 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 graduation the surtax itself, the
| income taxes as at present apportioned
would yield sums sufficient to balance the
books of the treasury at the end of the
fiscal year 1917 without anywhere making
the burden unreasonabiy or oppressiyely
heavy. The precise reckonings are fully
and accurately set out In the report OF
the secretary Of the treasury which will
be Immediately laid before you.
Il Tax on Gasoline.
And there are many additional source.
OF revenue which can justly be resortet
to without hampering the industries o.
the country or putting any too grea
charge upon individual expenditure. A
per cent tax per gallon on gasoline anc
4 naphtha would yield. at the present est
mated production, $4,000, 000 a tax of 8
cents per horsepower on automobiles an,
internal explosion engines Sis. o00, 900, j,
stamp tax on bank checks probably SIS.
900. 600, a tax Of Is cents per ton on pi,
iron SO. co., 600, tax OF so cents per ton OF
fabricated iron and steel probably $4,000.
600. In country of great industries Xix
this 1t ought TO be easy to distribute tn
burdens OF taxation without making then
:. anywhere bear too heavily or too exclu
sively upon any one set of persons or un
dertakings. What is clear is that the In
dustry of this generation should pay tn
bills Of this generation.
/ have spoken 20 you today, gentlemen
upon a single theme, the thorough prepa
ration Of the nation to care for its owi
security and to make sure Of entire free
dom to play the impartial role in thi
hemisphere and in the world which we al
believe to have been providentially assign
ed to It 1 have had in my mind n
thought Of any immediate or particuia
danger arising, out of our relations wit
other nations. We are at peace with a.
the nations of the world, and there is rea
son to hope that no question In controveI
sly between this and other government
will lead to any serious breach OF AMIGA
BILE relations grave as some differences @
. attitude and policy have been and ma
yet turn out to be. am sorry to say tina
the gravest threats against our nations
peace and safety have been uttered with
in our own borders There are citizens @
the United States. blush to admit, Dor
: under other flags, but welcomed under on
generous naturalization laws to the flu
freedom and opportunity of America, VIII
the very arteries of our national life, VIII
have sought to bring the authority an
, good nar1e Of our government into cor
: tempt to destroy our industries whereve
: they thought 1t effective for their vindic
: tive purposes to strike at them and to de
; base our politics to the uses Of foreign in
trigue. Their number Is not great as com
( pared with the whole number of thos
sturdy hosts by which our nation has bee
enriched in recent generations out of viril
foreign stocks. but 1t Is great enough t
have brought deep disgrace upon us an
{ to have made It necessary that we shout
promptly make use OF processes of law b
> which we may be purged Of their corruI
2 distempers.
DisIoyaity Denounced
America never witnessed anything lfh
this before. It never dreamed 1t possibl
, that men sworn into its own citizenship
men drawn out Of great free stocks sue
as supplied some of the best and strong
: est elements Of that little, but how hs
: role, nation that in high day of oil
: staked its very life to free itself from e,
4 cry ENHANCEMENT that had darkened til
fortunes of the older nations and set up
new standard heFe-that men of sue
origins and such free choices Of allegianc
J would ever turn In maIign reaction again'