The Washington herald., 1917-05-11
What Leading Newspapers
Say on the War Situation
The New Taxes.
New York TmesA

Congress must not frame a tax law
that will kill the bond market The
Secretary of the Treasury is now ask
ing the people of the United States to
bhy government bonds to the amount of
s., 900, ,O00, 900. Should the war not be ended
within the year, there will be a further
loan of 5000. 10000 offered, and the con-
tinuance of the war would make neces-
sary yet another 5000. 900, 900. Subscriptions
to the loan can come only from those
who have money or are making money.
Congress will have need to inquire very
carefully whether the new tax bill re-
ported to the House yesterday by the
Ways and Means Committee would not
unnecessarily and even dangerously dim
inish the profits of industry out of which.
chiefly, loans to the government must
come. In the words of Prof. Seligman,
taxation should be economically wise,
such taxation "as is compatible with the
continuance OF active enterprise and as
is calculated not to slacken the indus
try or damp the loyal enthusiasm of the
citizen"
First, We have the proposal to add 10
per cent to all customs duties levied
under the existing law, and to put a 10
per cent duty upon all articles now on
the free list. Imports free of duty
amounted in the fiscal year ended June
30, 1916, to about 81, 400 0OO, 900. 6S per cent
of the total imports. But AZ per cent of
our total imports in that year were of
raw materials for use in manufacture
The free list does not represent a cap
rice, or free trade theory. It rests
solidly upon the reasoned belief that it
is bad policy to levy a duty upon
raw materials which when imported are
the life of our manufacturers, give aul-
ployment to labor. and add to tho ma
tional wealth through the value given
to crude material by our skill and toll
That argument is as sound in wartime
as at any other time. -
New York Evening Post.
The revenue bill. as recommended by
the House Committee on Ways and
Means proposes a system of taxation
which appears on the whole commend
able. But there is still much room for
Improvement in details. The most strIk-
ing fault is the unexpected, and evidently
sudden, decision to increase all existing
duties by 10 per cent, besides laying \
similar rate on those articles now on the
free list. From a fiscal point of view.
this Is inexcusable. We had confidently
thought that we had graduated from this
level Of financing. It is impossible to fore
tell how much revenue such duties will
Yield. since their very imposition will
tend to decrease Importation. II this drop
Is very large, we might even find our
selves with less revenue than before as
occurred when a similar experiment was
tried at the beginning of the civil war.
But the disturbance of existing values is
even more disquieting. The free list is
made up Of rather carefully sifted group
of articles, chosen for manufacturing and
trade reasons. With a tariff board which
Is appointed for the very purpose of pass
ing on these questions, already sitting in
Washington, 1t is amazing to learn that
this makeshift was resorted to-
Boston Transcript.
Apprehension is already appearing In
financial circles over the "overplaying of
the news" at Washington in regard 10 the
subscriptions to the liberty loan. While
many subscriptions have been received
the 1900. 10000 limit has not been ap-
proximated. and the exaggerations on the
subject naturally have the effect Of dis
couraging popular subscriptions. Exactly
the same form of silly superlatives has
been coming out of Washington ever since
the war in Europe began, and particularly
in the last thirty days in regard to mill
tary and naval preparations. When Con-
gress authorizes an appropriation for a
battleship or the raising of a regiment the
National Capital seems to jump to the
conclusion that the battleship and the regi-
ment are forthwith available for use
against the enemy. They are encouraged
in this belief by the blatant publicity
methods of which the Secretary of the
Navy has been prime promoter. The
Secretary Of the Treasury should lose no
time in disciplining a subordinate in his
department who has been responsible for
the last ten days for the ridiculous stories
sent broadcast in regard to the liberty
loan The fact that the clerks of the
department are compelled to work longer
hours or that their desks are piled up
with kilograms is doubtless a new expe-
rience for them, but It should not be made
the excuse for new deception of the
public. Mr.. McAdoo has shown so much
initiative and energy in the last sixty
days that he should not be made to suffer
front the ill-advised zeal of bumptious un-
deriings who seize the opportunity offered
by ANY emergency to speed up the ma
chinery of personal publicity