The Washington herald., 1918-12-03

and which should also be accorded
, the shipments which are to save re-
Gently liberated peoples from starva-
ton and many devastated regions
from permanent ruin. May l not say
a special word about the needs OF Bel
! gium and Northern France. No sums
of money paid by way OF indemnity
will serve OF themselves to save them
from hopeless disadvantage for years
to come.
Something more must be done than
merely find the money. II they mad
money and raw materials in abun-
dance tomorrow they could not re-
sumo their place in the industry OF
the world tomorrow-the very impor-
tant place they held before the name
of war swept across them. Many OF
their factories are razed TO the
ground. Much of their machinery 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 as
sisted to rebuild their factories and
replace their lost instruments of
manufacture. They should not be left
to the yicissitudes of the sharp COM
petition for materials and for INDUS
| trial facilities which is now to set in.
Want. Exports Priorities.
hope therefore. that the Congress
will not be unwilling. il 1t should be-
come necessary, to grant to some
such agency as the War Trade Board
lthe right TO establish priorities of ex-
mort and supply for the benefit of
these people whom we have been so
happy in saving from the German
terror and whom We must not now
thoughtlessly leave to shift for them
selves in a pitiless competitive mar
ket.
For the steadying and facilitation
of our own domestic business read
iustments nothing is more important
| than the immediate determination OF
the taxes that are to be levied for
1918. 1913 and 1920. As much OF the
burden of taxation must be lifted
| from business as sound methods o.
financing 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 IL
will be of serious consequence 10
the country to delay removing all
uncertainties in this matter single
dav longer than the right processes
of debate justify. 1t Is IDLE TO taih
Of successful and confident business
reconstruction before those uIcer 'aiil
ties are resolved.
~ the war had continued it would
have been necessary to raise at least
vear 1919; but the war has ended and
agree with the Secretary of the
Treasury that 1t will be safe to re-
duce the amount to s6,0o0, ,0o0,OOO. An
Immediate rapid decline in the eN-
nenses of the government is not to
he locked for. Contracts made for
war supDlies will, indeed, be rapidly
cancelled and liuuidated. but their i'm
mediate liquidation will make heavy
drains on the Treasury for the months
inst ahead of Us. The maintenance
of our forces on the other side OF
the sea is still necessary. A consid-
erable proportion OF those forces
must remain in Europe during the
period Of occupation, and those "hlch
are brought home will be transported
and demobilized at heavy expense Tor
months to come. The interest on our
war debt must. of course, be palu
and provision made for the retire.
ment of the obligations Of the gov
ernment which represent IT. But
these demands will Of course fall
much below what a continuation OF
military operations would have en-
tailed and 5000, 900, 900 should suffice
to suprly a. sound foundation for the
financial operations of the year.
Agrees with McAdeo-
entirely concur with the Secre-
tary of the Treasury in recommend
ing that the s2.o00.0oo 1000 needed IN
addition to the A.ooo,ooo,cm PROVIDED
nv existing law be obtained from the
Drofits which have accrued and shall
accrua from war contracts and dis
tinctIv war business. but that these
taxes be confined to the war prohts
accruing in 1918, or in 1879, from
business originating in war contracts
7 urge your acceptance of his recon-
mendation that provision be mace
now not subsequently, that the taxes
10 he Maid in 1870 should be reduced
from ss 900 900, 900 to A.0oo,oco.ooO. ANY
.rranpements less definite than these
would add elements of doubt and con-
fusion to the critical period OF IN
dustrial readjustment through Which
the country must now immeola'eIy
mass. and which no true frlend Oh
the nations essential business IN
terests can afford to be responsive
for creating or prolonging. clearly
determined conditions, clearly ana
simply charted, are Indispensable 10
the economic revival and rapld III
dustrial development which may con-
idently be expected II we act now
and sweep all interrogation points
away.
rress will carry out the naval pro-
gram which was undertaken before
we entered the war. The Secretary Oh
the Navy has submitted to your com
mittees for authorization that part OF
tbe program which covers the build
ing nlans of the next three years.
These plans have been prepared along
the lines and in accordance with the
policy which the Congress establish
ed. not under the exceptional con-
ditions of the war, but with the IN
tention of adhering to a dehnlte
method of development for the navy.
I earnestly recommend the uninter-
rupted pursuit of that policy. IL
would clearly be unwise for US to at
tempt to adjust our programs to
future world policy as yet undeter-
mined.
The question which causes me the
greatest concern is the question OF
the policy to be adopted toward
the railroads. I frankly turn to you
for counsel upon 1t. I have no con-
fident judgment of my own. 90
not see how any thoughtful man