The Pulaskian., 1918-12-06

the right to establish priorities OF ex-
port and supply for the benefit OF
these people whom we have been SO
happy to assist in saving from the
German terror and whom we must not
now thoughtlessly leave to shift for
themselves in a pitiless competitive
market.
"For the steadying and facilitation
of our own domestic business read
iustments nothing is more important
than the immediate determination OF
the taexs that are to be levied for
1918, 1919 and 1920. AS much Of the
burden of taxation must be lifted
from business as sound methods OF
financing the government will permit
and those who conuct the great es-
sential industries of the country must
be told as exactly as possible what OBJ
legation to the government they will
be expected to meet in the years I'M
fmediately ahead of them. 1t Will De
Of serious consequence to the country
to delay removing all uncertainties IN
this matter a single day longer than
the right processes of debate justify.
1t is idle to talk of successful and con-
fdent business reconstruction before
these uncertainties are resolved.
IF the war had continued it would
have been necessary to raise at least
So. 000, 900 900 by taxation payable IN
the year 1919, but the war has ended,
and 1 agree with the secretary of the
treasury that it will be safe to reduce
the amount to $6,0O0,000000. An inn
mediate rapid decline in the expenses
of the government is not to be looked
for. Contracts made for war supplies
will, indeed, be rapidly Cancelled and
Inundated, but their immediate liqui-
dation will make heavy drains on the
treasury for the months just ahead of
us.
'The maintenance of our forces on
the other side of the sea is still nee
essary. A considerable proportion Of
those which are brought home will be
transported and demobilized at heavy
expense for months to come. The in
terest on our war debt must Of course
be paid, and provision made for the re-
tirement of the obligations of the gov
eminent which represent it. But these
demands will, of course, fall much be-
low what a continuation of military
operations would have entailed, and
$4,000 100000 would suffice to support
d sound foundation for the financial
operations of the year. l entirely con-
cur with the secretary of the treas
ury in recommending that the $4,000
900, 900 needed in addition to the four
billions provided by existing law be
obtained from the profits which have
accrued and shall accrue from war
contracts and distinctly war business,
but that taxes be confined to the war
profits accruing in 1918, or in 1919,
from business originating in war con-
tracts.
81 urge your acceptance of his rec
ommendation that provision be made
now, not subsequently, that the taxes
to be paid in 1920 should be reduced
from six to four billions. Any ar
rangements less definite than this
would add elements of doubt and con-
fusion to the critical period of indus
trial readjustment through which the
country must now Immediately pass,
and which no true friend of the ma
tons essential business interests can
afford to be responsible for creating
or prolonging clearly determined con-
ditions, clearly and simply charted,
are indispensable to the economic re-
Fmoval and rapid industrial develop
ment which may be confidently expect
ed if we act now and sweep away all
interrogation points
Naval Program.
II take it for granted that the Con-
gress will carry out the naval pro-
gram which was undertaken before we
entered the war. The secretary of the
navy has submitted to your commit
tees for authorization that part of the
program which covers the building
plans of the next three years. These
plans have been prepared along the
lines and in accordance with the pol
icy which the Congress established,
not under the exceptional conditions
of the war, but with the intention of
Tadhering to definite method of de-
velopment for the navy. I earnestly
recommend the uninterrupted pursuit
of that policy. 1t would clearly be
unwise for US to attempt to adjust our
progress to future world policy as
Eyet undetermined.
''The question which causes me the
greatest concern is the question of
the policy to be adopted towards the
railroads. ! frankly turn to your
counsel upon it. l have no confident
judgment of my own. / do nor see
how any thoughtful man can have, who