The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1915-12-10

have already given. disclose our fnan-
cial problem for the year 1917. AS
Stunning iliat the taxes imposed by the
emergency revenue act and the pres
ent duty ON sugar are to be discontin-
ued and that the balance at the close
of the present fiscal year will be only
$50, GA. .G0J.7S. that the disbursements
Tor the Panama canal will again he
about S25.0OOOOO and that the addi.
tional expenditures for the army ana
navy are authorized by the congress.
the deficit in the general fund of the
treasury ON the both of June, 1917.
will be nearly S235.OOO.OOO. To this
sum at least S50,OOO.OOO should, be add
ed to represent a safe working balance
for the treasury and S12.OOO.OOO to in
clude the usual deficiency estimates in
1917, and these additions would make
q total deficit of some s297 100000. II
the present taxes should be continued
throughout this year and the next.
however, there would be q balance in
the treasury of some $76,JOO,OOO at
the end Of the present fiscal year and
q deficit at the end Of the next year Of
only some $5OOOO.OOO. or, reckoning in
$62OOO.OOO for deficiency appropria-
lions and a safe treasury balance at
the end Of the year. total deficit Of
some S112.OOO.OOO. The obvious moral
Of the figures is that 1t is plain coun-
sci of prudence to continue all of the
present taxes or their equivalents and
confine ourselves to the problem Of
providing $112.0O0.OO0 Of new revenue
rather than $297, 100000.
How shall we obtain the new rev.
enue7 We are frequently reminded
that there are many millions Of bonds
which the treasury Is authorized under
existing law to sell to reimburse the
sums paid out Of current revenues for
the construction of the Panama canal.
and 1t is true that bonds for the
amount Of $222, ,432. 900 are now avail
able for that purpose. Prior to 1913
$13S, 100000 of these bonds had ac-
tually been sold to recoup the expendi.
lures at the fsthmus, and now con-
stitute a considerable item of the pub
Az ueUt- DuJ iOI Ouc W. AoI DchC'c
that the people of this country approve
of postponiDg the payment Of their
bills. Borrowing money Is shortsight-
ed finance. 1t can be justified only
when permanent things are to be ac-
complished which many generations
will certainly benefit by and which it
seems hardly fair that single genera
ton should pay for. The objects we
are now proposing to spend money for
cannot be 80 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 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 to 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 question
which the gentlemen of the house of
representatives are expected under the
constitution to propose an answer to
that you will hardly expect me to do
more than discuss it 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 to balance the books of the
treasury at the end of the fiscal year
1917 without anywhere making the
burden unreasonably or oppressively
heavy. The precise reckonings are
fully and accurately set out in the re-
port of the secretary of the treasury
which will be Immediately laid before
you.
And there are many additional
SOurceS VI TeNeHue WHICH can justly Dt
resorted to without hampering the In
dustries Of the country or putting any
! too great charge upon individual ex
penditure. A cent tax per gallor
on gasoline and naphtha would yield
, at the present estimated production
1000 900. a tax OF so cents per horse
power on automobiles and internal ex
plosion engines $l5.OOO.0O0. staml
tax on bank checks probably $4,000,
600. tax OF - cents per ton on pl.
iron $4,000, 900, tax Of 25 cents Pc
ton on fabricated iron ana steel proba
bly, $1O0OO,OO0. In country of grea
industries like thisft ought to be eas,
to distribute the burdens of taxation
without making them anywhere bea
too heavily or too exclusively upon an,
one set of persons or undertakings
What Is clear Is that the industry o
this generation should pay the bills o
| this oeueratiOn