The sun., 1916-08-24
PREPARE FOR TRADE
WAR, SAYS PENROSE
Pennsylvania Senator Urges
Industrial Fertilization
Through Tariff.
"DYESTUFFS POINT WAY"
Attacks Munitions Tax as Tn
uniform and Possibly A.
fecting Neutrality.

WASHINGTON. Aug. 2s-Debate in the
Senate on the emergency revenue bill to-
day was marked by a long speech by
Tenrose urging industrial pre-
to safeguard the country
against commercial warfare at the close
OF the European war.
This question of industrial prepared
ness said Senator Penrose, has re-
ceived definite recognition In the pending
bill In the provision relative to dyestuffs.
This CONCESSION made by those who
abhor impos.s and duties and tend to the
thought that nearly all the expenses Of
the Government 30 far as possible should
be raised by the taxes on incomes and
other direct taxes, seems TO me to consti-
tute a surrendcs which gives up their
whole case. II dyestuYs require a protec-
tive duty and II they are essential to our
Industrial independence. I conclude that
the same argument can be applied all
along the line"
Foresces = Trade war.
Referring to the recent conferences OF
the Entente Allies regarding commercial
plans that will operate to their own bene-
1T after the war the Pennsylvania Sena-
tor said:
In the face OF these developments al
ready occurring and with the likelihood
OF still more portentous aspects OF trade
war arising in the near future. We are
called upon to pass the pending revcnuc
,tsl-,s - ra-arl urhaNnxar
for the menacing situation which will In
evitably confront us as the war In Eu-
rope draws to a close. The only recogni-
ton occurring in the bill OF such a
menace ~ found in the anti-dumping par
agraph. Here again We have an act of
Inconsistency similar to that which we
And In the instance OF dyestufs.
I'VE are drifting to a system Of direct
taxes at a time when nearly every civil
ICED nation is going In the other d!rec-
ton. Before the outbreak OF the war IN
Europe every nation In Europe except
England had n protective tarin. II Ger.
many had not had a protective tariff and
been able to meet a large part Of her re.
quirements from home production IN.
war would have been over long ago as
far AZ Germany was concerned. Anc
there Is every reason to believe tina
with the close OF the war new trade al
iiances and treaties will be made which
will make II more Imperative thar
ever that the United States should re
! ready for industrial preparedness"
Munitions Tax CnunifOrm.
II a munitions tax |. TO he imposed
Senator Penrose said. il should be applied
to all who sell ~contraband goods to ma
tlons at war.
Investigation discloses." he said. "tha
| the munitions tax is sectional. upuni
form. of doubtful validity. of question
able legality and objectionable in man!
other ways. II might be claimed to b
an evasion OF the constitutional inhibi
ton against taxing exports. hut II IL !
not a tan ON exports and Is n direct IA
similar TO other direct taxes now en-
bodied in the law. hen II clearly consti
tutes double taxation, sine the manu-
featuring corporations involved In tn
munitions tax already pay n Fedora
tax on earnings.
at might also be argued that such
tax would affect our neutrality. !
neutral Government does not protec
trade in c~ontraband. II cannot
In II itself. II is merely relieved OF IN
expense Of suppressing II. II II tr.e
to turn IL into "A source OF revenue
would lay itself open to a charge q
such interest in the business as to max
1t a virtual partner