Weekly journal-miner., 1916-09-13
MUST RESORT ID BOND ISSUE ID
 RAISE COIN
UNDERWOOD TARIFF LAW IS A COMPLETE FAIL URE AS A PRODUCER OF REVENUE.

NEW YORK, Sept. 6.-An increase of five hundred millions of imports and decrease Of ono hundred mil lions of customs revenue is the req son why this administration Is con- pelled to impose numerous special taxes designed to raise S205, 100000, besides selling bonds for Sl30,000,00O and mourning indebtedness which un- doubtedly will necessitate far greater bond sales. In a word, the Under wood tariff bill is a complete failure as revenue producer. Many inquir- ies as to the necessity of these special taxes, whether they are solely the re- suit of Democratic extravagance, or whether they are caused by the pre- paredness program, have reached your correspondent. The simple, fundamental fact is as stated. While Democratic extravaganza has doubt less played an important part, and while the preparedness program may be held to account for part of the need, the tariff statistics issued by the treasury department really tell the story. Contrary to popular impress sion, the European war has not de- creased imports On the contrary. As compared with the fiscal year end ing June 30, 1912 (when the Payne tariff bill was in effect) the imports for the fiscal year ending June 30, 1916, show an increase of S544, ,620, ,O00; but the tariff revenue collected there On shows a decrease, as compared with that collected in 1912, of Soo, 3ol,- GOO. Obviously, with a tariff bill which falls so far short of even the Democratic ideal, "a tariff for revenue only" the most rigid economy should have marked the appropriations of congress, and equally obviously, the greatest extravaganza has marked those appropriations: but if the Payne duties were still in force, with an in crease of over five hundred millions in imports the entire preparedness program could have been cared for without the imposition of penny of special taxes.
 After the War.
 There has been a great deal of talk about conditions after the war. The Republicans believe there will come an era of the iercest industrial com petition and that unless the tariff law is amended the industries of the Unit cd States will suffer disaster. The Democrats, however, profess to be- licve that an era of prosperity will follow the end of the war, and they actually insist that the present pros- perity is permanent Facts and fig ures, however, speak louder than academic argument and here are facts and figures. When the European war broke out $ per cent of the plant of the Carnegie Steel Company was idle, and there was much distress among the employees. Recently 100 per cent Of its plant was running full time and its employees are prosperous. But and it is big but-55 per cent of its recent output consists of ammunition, or some form of steel designed for use in making ammunition. The instant the war stops, that $ per cent of the plant will again be idle, and so will the employees who are operating it.
 The Federal Reserve Act.
 It is generally remarked that all the credit which this administration might have derived from the enactment of the Federal reserve act has been de- stroyed by the appointment of John Skelton Williams, who has made the most thoroughly unfit comptroller of the currency in the history of the na- tional bank act A striking commen- tary on Williams is found in a letter addressed to him by ]. ]. Barley, pres ident of the Bank of Valley City, N D. Mir. Barley says, in part: "The bank of which I am president is one of the few State banks in North Da- kota with sufficient capital to be eligi- ble under the law for admission into the Federal reserve system. In bank ing capital, less investment in real es- tate, it is in third place among the more than 650 banks now operating under our State law. The officers and directors of the Federal reserve bank of the Ninth district have repeatedly invited and urged HIS to join and have frequently asked our objections to joining. We are fully conscious oi the great benefits to trade, industry and investment, as well as the busi- ness of banking specifically, that arc possible as a result of the Federal re- serve system, if administered wisely and kept free of personal and political influences, and we would gladly pay our pro rata share of the expense of maintaining the system, which is now being borne by the national banks ex- clusively. We arc conscious, too, as all must be, including yourself, that the reserve bank system will not reach | its full measure of usefulness while | more than three-fourths of the coun- try banks remain outside, and we look | with misgivings, as you must, on the numerous conversions of national |