Omaha daily bee., 1918-12-03
PRESIDENT PRESENTS RAILROAD PROBLEM TO CONGRESS-

trusted to the department of the in
terror. 1t is possible in dealing with
our unused land to effect a great
rural and agricultural development
which will afford the best sort Of
opportunity to men who want to
help themselves; and the SECRETARY
of the interior has thought the pos.
sible methods out in way which is
worthy of your most friendly at
tention.
Control Of Shipping.
I have spoken of the control
which must yet for while, perhaps
for long while, be exercised over
shipping because of the priority Of
service to which our forces overseas
are entitled and which should also
be accorded the shipments which
are to save recently liberated peo-
Piles from starvation and many dew
astated regions from permanent
ruin. May'I not say a special word
about the needs of Belgium and
northern France?
No sums of money paid by way
of indemnity will serve of them
selves TO save them from hopeless
disadvantage for years to \come.
Something more must be done than
merely find the money. If they had
money and raw materials in abun-
dance tomorrow they could not re-
sumo their place in the industry of
the world tomorrow-the very inn
portant place they held before the
fame of war swept across them.
Many OF their factories are RACED to
the ground Much of their machin-
cry is destroyed or has been taken
away. Their people are scattered
and many of their best workmen are
dead. Their markets will be taken
by others, if they are not in some
special way assisted to rebuild their
factories and replace their lost in
struments of manufacture.
They should not be left to the
vicissitudes of the sharp competition
for materials and for industrial IA
ci1ities which is now to set in. |
hope, therefore, that the congress
will not be unwilling, if it should
become necessary, to grant to some
such agency as the war trade board
the right to establish priorities of
export 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 competi-
tive market.
Must Decide on Taxes.
For the steadying and facilitation
of our domestic business readjust-
ments nothing is more important
than the immediate determination of
the taxes 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
the government will per-
NIT, and those who conduct the
great essential industries of the
country must be told as exactly as
possible what obligations to the
government they will be expected to
meet in the years Immediately ahead
of them. 1t will be of serious con-
sequence to the country to delay
removing all uncertainties in this
matter single day longer than the
right processes of debate justify. 1t
is idle to talk of successful and con-
fldent business reconstruction before
those uncertainties are resolved.
If the war had continued it would
have been necessary to raise at least
Sc, 000,0O0,O00 by taxation, payable in
the yearll9l9, but the war has ended
and l agree with the secretary of
the treasury that it will be safe to
reduce the amount to $4,000, 100000.
An immediate rapid decline in the
expenses of the government is not to
be looked for. Contracts made for
supplies will, indeed, be rapidly can
celed and liquidated, but their i'm
mediate liquidation will make heavy
drains on the treasury for the
months just ahead of us. The main
tenance of our forces on the other
side of the sea is still necessary. A
considerable proportion of those
forces must remain in Europe during
the period of occupation, those
which are brought home will be
transported and demobilized at
heavy expense for months to come.
The interest on our war debt must,
of course, be paid and provision
made for the retirement of the obi
cations of the government which
represent it. But these demands
will, of course. fall much below what
a continuation of military opera
tons would have entailed and six
billions should suffice to supply
sound foundation for the financial
operations of the year.
Should Tax Profits.
I entirely concur with the secre-
tary of the treasury in recommend
ing that the. two billions needed in
addition to the four billions pro-
vided by existing law be obtained
from the profits which have &C
crued and shall accrue from war
contracts and distinctively war bus
mess, but that these taxes be con-
fined to the war profits accruing in
1918, or in 1919, from business orig
mating in war contracts. / urge
your acceptance of his recommends
ton 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
less definite than these
would add elements of doubt and
confusion to the critical period of
industrial readjustment through
which the country must now imme-
diately pass, and which no true
friend of the nations essential bus