Arizona republican., 1916-08-24
COMMERCIAL
 WAR |S COMING
 SAYS PENROSE
[Republican A. p. Leased wIrel


 WASHINGTON, Aug. 2s.-Debate in the senate on the emergency revenue bill today was featured by a long speech by Senator Peurose. urging in- dustrial preparedness to safeguard the country against commercial warfare at the close of the European war and vigorously attacking the pending measure. He questioned the legality of the proposed munitions tax and ger- erai democratitc advance toward sub stituting direct taxation for the pro- tective tariff
 Senator Underwood. democrat. au- thor of the present tariff law. and Senator Mclean, republican. also par ticipated in the discussion. the former defendinng the tariff law against re- publican attacks and the latter charg ing the democratic administration with extravaganza and deploring it's tend ency to resort to sources for federal taxation that should be reserved to the states.
 "This question of industrial pre- paredness said Senator Penrose, has received definite recognition in the pending bill in the provision relative to dyestuffs This concession made by those who abhor imposts and duties and lean to the thought that nearly all of the expenses of the government so far as possible should be raised by taxes on incomes. and other direct taxes. seem to me to constitute a sur render which gives up their whole case If dyestuffs require a protective duty and If they are essential to our indus | trial independence. l conclude that the same argument can be applied all along the line"
 Referring tO the recent conference of | the nations at war regarding commer- | cial plans that will operate to their ! own benefit after the war. the Penn ! sylvania senator said:
 Tn the face of these developments ! already occurring and with the likeli- 1 hood of still more pretentious aspects I 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 confront us as the war in Europe draws to a close.
 I've are drifting to a system of di- rect taxes at a time when nearly every l civilized nation is going in the other ! direction. There is every reason to i believe that with the close of the war, { new trade alliances and treaties will be made which will make 1t more i'm perative than ever that the United
 States should get ready for industrial preparedness
 If a munitions tax is to be imposed
 Senator Penrose declared. it should be
 applied to all who sell contraband
 goods to nations at war.
 "Investigation discloses." he said
 that the munitions tax is sectional
 un-uniform, of doubtful validity. oi
 questionable legality. and objection.
 able in many other ways.
 "It might also be argued that such 2
 tax wo6ld affect our neutrality. 4
 neutral government does not protec
 trade in contraband II cannot engage
 in 1t itself. It is merely relieved of tho
 expense of suppressing it."
 Senator Underwood spoke at lengtl
 in defense of the existing tariff law
 He approved the pending revenue bil
 in it's main features. he said but dit
 not concur in the recommendation 10
 q tariff commission and increase'
 duties in dyestuffs. After reviewinl , the operations of the tariff law, ant
 submitting q multitude of statistics
 Senator Underwood said that he hal l "conclusively demonstrated that tariff } taxes now on the statute books do no ieopardiZe American industry, o threaten American labor" The revenue bill, Senator Underwoo said, was necessitated by the demand l of the wealth of the country for mili J tary preparedness.