Evening star., 1918-05-27


with unaffected reluctance that I
come to ask you to pEolong your
session long enough to provide
more adequate resources for the
Treasury for the conduct of the
war. l have reason to appreciate
as fully as you do how arduous the
session has been. Your 1abours
have been severe and protracted.
You have passed a long series of
measures which required the debate
Of many doubtful questions of
judgment and many exceedingly
dimcult questions Of principle as
we'll as of practice. The summer
is upon US in which labor and
counsel are twice arduous and are
constantly apt to be impaired by
lassitude and fatigue.
The elections are at hand. and
we ought as soon as possible to
go and render an intimate account
Of our trusteeship to the people who
delegated US to act for them in
the weighty and anxious matters
that crowd upon US in these days
of critical choice and action. But
we dare not go to the elections
until we have done our duty to
the full. These are days when
duty stands stark and naked, and
even with closed eyes we know
it is there. Excuses are unayail-
ing. We have either done our
duty or we have not. The fact
will be as gross and plain as the
duty itself. In such a case lassi-
tude and fatigue seem negligible
enough. The facts are tonic and
suffice to freshen the labor.
Must Raise Revenues.
And the facts are these: Addi-
tional revenues must manifestly
be provided for. i would be
most unsound aafcy TO raise too
large proportion OF them by
loan, and it is evident that the
four billions now provided for by
taxation will not Of themselves
sustain the greatly enlarged bud
get to which we must Immediately
look forward. We cannot in fair
ness wait until the end of the fis-
cal year is at hand to apprise our
people Of the taxes they must pay
on their earnings of the present
calendar year. whose accountings
and expenditures will then be
closed. We cannot get increased
taxes unless the country knows
what they are to be and practices
the necessary economy to make
them available. Definiteness. early
definiteness. as to what it's tasks
are to be is absolutely necessary
for the successful administration
Of the Treasury: it cannot frame
haste; and 1t must frame its regu-
lations in haste II it is not to
know It's exact task until the very
eve of its performance. The pres
ent tax laws are marred. more
over, by inequities which ought to
be remedied. Indisputable facts.
every ono; and we cannot alter or
blink them. To state them is
argument enough.
Explains Situation.
And yet perhaps you will per-
NIT me to dwell for a moment
upon the situation they disclose.
Enormous loans freely spent in
the stimulation Of industry of al
most every sort produce infla-
tions and extravagances which
presently make tbe whole eco
nomic structure questionable and
insecure and the very basis of
credit is cut away. Only fair,
equitably distributed taxation, of
the widest incidence and drawing
chiefly from he sources which
would be likely to demoralize
credit by their very abundance,
can prevent imitation and keep
our industrial system free of
speculation and waste. We shall
naturally turn. therefore, I sup
and luxuries for the additional
taxes. But the war profits and
incomes upon which the increased
taxes will be levied will be the
profits and incomes of the calen-
dar year 1918. 1t would be mani
testify unfair to wait until the
early months Of 1919 to say what
they are to be. 1t might be diff
cult, l should imagine. to run the
mill with water that had already
gone over the wheel.
Moreover. taxes of that sort will
not be paid until the June Of next
year. and the Treasury must an
ticipate them. 1t must use the
money they are to produce before
1t Is due. It must sell short time
certificates of Indebtedness. In
the autumn much larger sale Of
long time bonds must be effected
than has yet been attempted. What
are the bankers to think of the
certificates If they do not certain
ly know where the money is to
como from which is to take them
up? And how are investors to ap-
proach the purchase of bonds
with any sort of confidence or
they do not know what taxes they
are to pay and what economies and
adjustments of their business they
must effect? cannot assure the
country of a successful admins
tration of the Treasury in 1913 If
the question of further taxation is
to be left undecided until 1919.
Consideration That Dominates.
The consideration that dominates
every other now. and makes every
other seem trivial and negligible.
is the winning of the war. We are
not only in the midst of the war,
We are at the very peak and crisis