New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-24
Urges Industrial Prepared
ness to Safeguard
the Country.
DOUBTS LEGALITY
OF MUNITIONS TAX
Underwood Defends Tariff
and Mclean Attacks Dem
ocratic Waste.

Washington, Aug. ss.-Debate in the
Senate on the emergency revenue bill
,o-dsv was featured by a long speech
hv Senator Penrose, urging industrial
,rsparedness to safeguard the country
,csinst commercial warfare at the
lbs. Of the European war, and vigor-
ouslv attacking the pending measure.
IN. Senstor questioned the legality Of
n. proposed munitions tax and criti-
Used the proposed inheritance tax and
The general Democratic advance toward
,rbstituting direct taxation for the pro-
teetive tariff.
Senator Underwood, author OF the
nresent tariff law. and Senator Nc
Lean IRepubli am ook part i'll the
discussion. the former defending the
tariff law and the latter charging the
Democratic Administration with ex-
,rsyagance and deploring its tendency
70 resort 20 sources for Federal taxa
ton that should be reserved to the
Protection Recognized.
This question of industrial pre-
naredness." said Senator Penrose, has
received definite recognition in the
pending bill in the provision relative
70 dyestufs. This concession made by
those who abhor imposts and duties
and tend 70 the thought that nearly
all the expenses Of the government
so far as possible should be raised by
the taxes on incomes and other direct
taxes, seems TO me to constitute a sur
render which gives up their whole
case. II dyestufFs require protective
duty and if they are essential to our
industrial independence conclude
that the same argument can be ap-
piled all along the line"
Referring to recent conferences Of
nations st war regarding commercial
plans that will operate to their own
benefit after the war, the Pennsylva-
MIA Senator said:
an the face Of these developments
already occurring, and with the like
lihood Of still more portentous as
poets OF trade war arising in the near
future, we are called upon TO pass
the pending revenue measure without
any regard whatever for the menacing
situation which will inevitably con-
front US as the war In Europe draws
10 close. The only recognition oc-
curing in the bill Of such a menace Is
found in the anti-dumping paragraph.
Here, again, we have an act of incon-
sistency similar to that which we find
IN the instance Of dyestuffs.
Coming to Direct Taxes
1--WE are drifting to system OF
direct taxes at a time when nearly
every civilized nation is going in the
other direction. Before the outbreab
Of the war every nation in Europe, ex
cept England, had a protective tariff
Ii Germany had not had a protective
tariff and been able to meet large
part Of her requirements from homt
protection the war would have beer
over long ago, so far as Germany wa
concerned. ana tneTc Is every IedSOl
TO believe that with the close of tn,
war new trade alliances and treatie!
will be made which will make il more
imperative than ever that the United
States should get ready for industrial
preparedness"
The revenue bill, Senator Underwood
said, was necessitated by demands o.
the wealth of the country for military
preparedness.
"The burden OF this proposed tax,
the Senator declared, "s distributed tC
the wealth of the country. 1t is not 6
tax on consumption where the burden
falls on the masses. Increases in the
army and navy have come from a de-
mand from the representatives Of
wealth. They largely will get the ben.
eft, and il is but Just that they should
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