The Holly chieftain., 1915-12-10

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 cloths
our policy of America for Americans.
Ships Are Needed.
The task of building up an adequate
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
shouid 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
sudden. 1t must embark upon 1t by de-
grees. as-the opportunities of trade de-
veiop. Something must be done at once:
oone 10 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 quickened:
and II is evident that only the govern
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 II 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;
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 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
tcuars. I 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
testify imperative.
Question Of Finance.
The plans for the armed forces of tho
nation which l have outlined, and for
the general policy of adequate prepara-
tion for mobilization and defense, in
volve Of course very large additional ex-
penditures of money-expenditures which
will considerably exceed the estimated
revenues of the government 1t is made
yppa ttrr,o too
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.
On the thirtieth of June last there was
an available balance in the general fund
Of the treasury of s104 40, 1O57S 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 Us
present limit, the thirty-flrst of Decem-
Der. 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 STA. .535, ,605.7S
The total estimated disbursements for the
present fiscal year. including $25,O 0.000
for the Panama canal, $12.OOo.OO0 for prob
able deficiency appropriations and $780,
900 for miscellaneous debt redemptions.
will be H53,s9 900: and the balance in the
general fund of the treasury will be re-
duced to s2o.644. 44.605.7S. The emergency
revenue act II 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
int Of hn %
May. about fifteen millions. These two
sums, amounting together to ST. 900,
II 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 1854. .6057S.
The additional revenues required to
carry out the program of military and
naval preparation of which have spok-
en-, would, as at present estimated, be
for the fiscal year 1917. s93, 100000. Those
figures, taken with the figures for the
present fiscal year which have already
given, disclose our financial problem for
the year 1917.
How shall we obtain the new revenue7
1t seems to me clear dictate of pru-
dent craftsmanship and frank finance
that In what we are now, I hope. about
to undertake we should pay as we go.
To what sources, then, shall we turn?
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 books of
the treasury at the end Of the fiscal year
1917 without anywhere making the bur-
den unreasonably or oppressively heavy.
The precise reckonIngs are fully and ac-