The Barre daily times. (Barre, Vt.) 1897-1959, 1917-07-10
DELAY HELPS
GERMANY
Revenue Bill Tied Up by the
Smoot Amend
ment
ESTIMATED EXPENSE
IS S67O,OOO, 1000
Means Increased Taxes to
Home Consumers-Sen-
ate in Chaos

Washington, July l0--If Germany haC
been debating to the United States Sen
ate in its war legislation it could moi
have done better than TO secure the adop
tion of TIE Smoot amendment to the
food control bill, which the Senate APP
proved Saturday. This is the provision
requiring the government to purchase
all distilled spirits in bond. The imme'
date effect of this action was to cause
Senator Simmons, in charge of the wal
tax BILL to send that measure back to the
finance committee where it must rest un-
til the Senate has disposed of the food
control bill.
According TO the best figures avail.
able, although not those used by Sena-
tor Smoot, the communicating provision
will cost the government, in actual ex-
penditure and loss OF revenue, about
5000, 900, and of course this loss must
be made up by increased excess profits
taxes and by fresh taxes upon consump-
ton, which the people will feel much
more heavily than any now proposed in
the bill of the finance committee. Five
eighths of the taxes suggested by the
finance committee do not touch consump-
tion at all, but with the Smoot amend
ment retained in the law, the people
win begin to feel the effects of drastic
war prohibition even before American
troops have fired gun in Europe.
The Communicating clause was not de-
manded even by the extreme Prohibition
lists, according to their own published ar
guments, for their cry has been only
that foodstuffs should not be used for
the making of liquors. The government
cannot make alcohol from the spirits it
must purchase so cheaply as it can buy
it otherwise, as business proposition,
distinct from its alleged moral purpose,
the Smoot idea has not a leg to stand
on. Not only the food control bill but |
the war tax bill promises to be severely |
delayed in passage by the mixture of the
prohibition issue on the two, and it is |
believed that President Wilson must UNI
tangle the snarl in which the legislation
now finds itself if any legislative prog
ress can be made. In fact, friends of the
president will regard him as warranted
in vetoeing the food control bill with
The Smoot amendment in it, and demand
ng that the measure be revised TO make
t conform to its original purpose, which
was to lodge discretionary powers in
he hands of the government and not
% force its action in ways never con-
by the food administration.
This situation in which the Senate now
inds itself is made the more difficult by ,
he blind frenzy for price fixing which
possesses administra tion officers who are
folding up millions OF dollars worth of
italy important contracts while they
Iaggle over prices. Every time war prof !
Is are cut government income decreases
nd it is generally agreed that war {
rofts must pay large proportion OF {
ng them simply takes money out of its t
wn pocket at the same time it delays /
Military preparation. Moreover, the cal
ulations of the finance committee are |
ased upon business experience Of which '
hey expect a continuance as long as the t
-ar lasts, and the moment Congress in t
crazy moment slashes revenue and cab a
yet officers upset business practice with
otions Of their own, the basis of useful v
,lculation disappears. Notice has been
.rved now, however, through the courte- I
is action OF Senator Simmons, that no
ore tax legislation will be attempted
ntil Congress returns to something like
,onomic sanity, for the recommitment A
the bill is very different matter
ON the tackling on lot of additional
Ixes to it as amendments.