Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-11-03
WARNS OF WAR
TAX AFTER WAR
u. S. Internal Revenue Com
missioner Roper Points
to Future Needs
DANGER OF INITIATION


have been made necessary by the large war
time expenditures Of the United states, was
| sounded today in this city by Daniel e.
| Roper, who, as Commissioner of Internal
| Revenue, is the man who is responsible for
; the collection of the war taxes which have
just been laid upon the American people
| by the last Congress Commissioner Roper
came from Washington to address the con-
+ ference called TO discuss war figures by
| the American Academy of Political and So
cial Science, and whose sessions are being
held In the assembly room of the Chamber
| of Commerce.
Preceding Mr. Roper's address this after
| noon, A. C. Miller Of the Federal Reserve
| Board, Washington, made an equally signlh-
cant address at the morning session Mr..
| Miller, who was brought to the Federal
| Reserve Board from the University of
California because of his reputation as one
| OF the leading financial experts in the
| country asserted that in his opinion the
| annual income of the nation that is to say,
| the value OF the gross annual production
! OF American Industries, could now be esti-
mated at not less than fifty billion dollars
| and the net income Of the nation, since the
| beginning Of the war at between ten and
| fourteen billion dollars annually In spite
| OF this enormous wealth, however, he con.
tended some way must be discovered by
the people of the United States who are
not serving as soldiers or as producers of
supplies intended for the prosecution of the
war to double the pre-war productivity of
| the nation.
TAX COLLECTION A HUGE TASK
Commissioner Roper after discussing the
problem Of administering the war revenue
act just put into effect. and OF collecting
from each citizen the full amount Of his
contribution to the nations need without
disturbance to business. gave an Idea of
the immenslty of the task before the Bureau
or Internal Revenue by pointing out that
while the number OF income tax returns
last year was 10000. the number esti-
| mated for 1918 Is 6,35O,O0O
largely increased number OF employees
Of the bureau has of course been made
necessary together with the creation Of an
excess profits advisory board and a board
Of legal review by the President. Com
missioner Roper laid emphasis on the fact
that the latter board will be recruited from
unofficial life Eminent lawyers, said he,
will be asked to contribute their services
for advice TO the bureau.
THE new law presents many problems
of construction and Interpretation which are
fraught with grave consequences to the
public revenues and to business" said Mr.
Roper The creation OF the Board Of Legal
Review along the lines contemplated is an
assurance to the country that these prob
lens will not be dealt with in a narrow,
bureaucratic way, but that they win be
solved in the light of the broadest and most
constructive legal knowledge and expert
ence available"
WAR TAXES TO CONTINUE
Predicting a continuance of war taxa
tion. he said:
THE large expenditures Of the Govern
ment on account Of the war will make
necessary an elaborate program of Federal
taxation for number of years. The issues
of war bonds, which have been so literally
subscribed, will eventually have to be dis I
solved hV direct law m ba A
great sinking fund must be provided against
the days of maturity, and meanwhile a con-
siderable part of the war budget of each
year will be paid out of the revenue of
current years.
1T is very desirable that the tax-gather-
ing machinery be perfected I'm every part
and that the fullest possible expression be
given to the experience Of the public and
of the Government with the operation of the
first war-revenue act. Inequalities and in
constituencies in the existing revenue scheme
may be removed I'm later legislation If only
the present program is intelligently and
fairly carried out and subjected TO con-
structive and helpful criticism. To this end
the Bureau of Internal Revenue. I'm analyz-
ing the new law, is creating two files. one
of administrative practices, rules and regu-
lations; the other OF needed legislative re-
dress and relief to be submitted to Com
gress. This seems but just when the Gov
ernment and business must work shoulder
to shoulder i'm bearing the responsibilities
OF encouraging and supporting our boys in
the trenches"
Other speakers at this afternoons ses-
sion were Dr. Simon N. Patten, of the Uni
versity OF Pennsylvania; DIR. T. s. Adams,
or Yale University, and j. F. Zoller, tax
attorney fer the General Electric Con,nanyy
schenectady, n. Y Charles S. Calweil,
president Of the Corn Exchange National
Bank or Philadelphia, presided at the
AFTERNOON session, while Dr. Frank L, Me-
Ney' president of the University Of Ken
lucNy' presided at the morning session.
100000 WAR WORKERS
Mr. Miller, of the Federal Reserve Board
drove home the meaning of the economic
problem created by the war by showing
that not less than 100000 men o,,t nS
the 10000, 600 workers in the United States
must now give all their energies TO Uar
work. To care for the needs OF Americas
civilian population, way must be discov-
cred by which the productivity of the rest
Of the nation can be increased SO as to All
the gap left by tina withdrawal of bar ~
the nations workers for war work. For
he pointed out, upon what we can produce
apart from war supplies depends the abil
ity Of the nation to make further war ex.
penditures
"The man who knowingly breaches b;,st-
ness as usual is proposing that private ad-
vantage be set ahead Of public necessitv -
he said
Initiation because of Government loans 10
already upon the country in a slight degree
and will increase as it has in Europe unless |
the people exercise the greatest econon,,y
he said He estimated Germany had H.
flated its currency 230 per cent in the three
years of war. High prices in America he
declared, were partly due to the fact that
the Government had issued loans faster
than wealth had been produced.
PRICES INCREASED 50 PER CENT
American prices. he declared, have In.
creased SO per cent as against 100 per
cent for English.
In addition to individual thrift and In
creased productiveness he asserted:
THE right of way must be given IN in
dustries which contribute to the war needs
Of the Government While we an save
there must be no leakage or lost motion IN
producing articles which are not needed"
''The American business system is on trial
| In this war" continued Mr.. Miller. "Is a.
| fails 20 rise to the occasion through cow
ardlce, weakness or selhshness II will hava
| gone long way toward sounding its deatb-
knell and surrendering to other agencies
the right OF leadership In the great prooesses
Of economic reconstruction which must taks
| place at the close OF the war.
II cannot believe that those who ~.