New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-19
WAR EXPORT TAX,
WALSH'S WAY OUT
Lawful and Would Raise
S15O,OOO, 900, Says Mon
tana Senator.
From The Tribune Bureau 7

Washington. Oct. 1S.-An export duty
on munitions Of war would not conflict
with the Constitution, as is generally
believed. and would be the ideal method
of raising revenue for the prepared
ness programme, according to an opin-
ion expressed by Senator Thomas j.
Walsh, Of Montana, here to-day.
Senator Walsh is an able conStitu-
tional lawyer, and his idea Of an export
tax was a surprise 10 the Democrats,
who have been wondering what method
Of raising money without direct taxes
or a bond issue could be devised TO eX-
tricatc the administration from its
financial dilemma. Such a tax, II rs
estimated, would raise at least $780,
100000 q year, and possibly much more.
Senator Walsh admits there is a
slight doubt on the question, but be
lieves that the courts would hold such
a tax constitutional. Should they not
do so. he said. he had heard another
suggestion for accomplishing almost
the same effect, and with no danger of
conflict with the Constitution. That
would b, to levy tax on the munitions
as tn ~ were manufactured, no matter
for what purpose, precisely as the gov
eminent taxed whiskey.
United States Would Pay and Receive.
The munitions bought by the United
States government, OF course, would
nav the tax, but this would be merely
transferring from one pocket to the
other, as the government would both
nay and receive. As innocent bystand-
ers the sportsmen would suffer. but
Senator Walsh declared that while TINS
was not desirable il could not be helped
if this plan Of raising revenue we're
resorted 10.
81 am in favor Of raising the revenue
which the government needs IN addition
10 that raised from the present sources.
he SAL, "by an export duty Of 20 per
cent on all war munitions. ! am aware
that an export duty has been consld-
cred as unconstitutional because OF
THAI provision Of the Constitution which
forbids export duties from one state 10
another.
But il is my distinct impression that
an export tax would be constitutional
The government has the power to put
an embargo on any or all exports, and
has done so in the past If the govern
ment has the power TO stop thing al
together, surely II has the power TO put
an obstacle in its way, on the theory
that the whole is greater than any OF
its parts. ,,.. ,
of tax. If il is constitutional, there IS
no question in my mind at all. con-
slider il infinitely better than bond
issue or additional internal revenue
taxes. At this time il is the proper
method for this government 20 use IN
imposing taxes TO provide the additional
revenue that is needed. IL would place
the burden Of the extra taxes where II
could be most easily borne-on the in
dustries which are making huge profits
out of the extraordinary conditions
caused by the European war"
Might Exceed sij0,o00.000.
I'll In figuring on the revenue that could
be produced by 20 per cent tax on
war exports, IL was shown that the re-
turns would easily reach the Sl50,000.-
600 mark for a year, while they might
greatly exceed this figure. For instance,
the exports Of explosives and gums
alone. on the basis Of August figures,
which will tend to increase rather than
diminish. would amount to SloO,OO0,OO0
a year. producing a revenue OF $780,
000.OOO.
Taking a few additional items steel,
brass. copper, aeroplanes. automobiles
and chemicals the reports Of the Com
merce Department show that the in
crease alone in these exports Is inquired
~ s25i. 900. 900 a year. which would
produce $40 100000 more Of tax. TX
merits believe the increases IN these com
moditics arc all for war purposes. ne
increase in the exports Of leather alone
is figured at sos. 100000, using hgures
for the last seven months as basis
which would bring T" S'h.Sno""" move