The Barre daily times. (Barre, Vt.) 1897-1959, 1919-12-02

| Orderly processes the message de-
clarcd, were the only ones by which re-
lief and reform could be obtained.
"Those who would propose any other
method of reform are enemies of this
country" the message said. "s
Let those beware who take the shorter
road of disorder and revolution"
THE MESSAGE.
To the Senate and House of Representatives:
l sincerely regret that | cannot be present
at the opening of this sssion Of the Congress.
l am thus prevented from presenting in as
direct way l could wish the many ques-
tions that are pressing for solution at this
time. Happily, l have the advantage of the
advice of the heads of the several executive
departments who have kept in close touch
with affairs in their detail and whose
thoughtful recommendations / earnestly
second.
In the matter Of the railroads and the re-
adjustment of their affairs, growing out OF
federal control, | shall take the liberty at
later day Of addressing you.
| hope that Congrss will bring TO con-
clusion at this session legislation looking to
the establishment Of a budget system. That
there should be one single authority respon-
sibe for the making of all appropriations
and that appropriations should be made not
independently of each other but with refer
ence 10 one single, comprehensive plan of
expenditure, properly related to the nations
income, there can be no doubt ] believe the
burden of preparing the budget must in the
nature Of the case, If the work is to be prop
eriy done and responsibility concentrated in
stead Of divided, rest upon the executive.
The budget so prepared should be submitted
to and approved or amended by single
committee Of each house of Congress and no
single appropriation should be made by the
Congress. except such as may have been in
al cd in he mr. a-rdb " IL
tive or added by the particular COMMITTEES OF
Congress charged with the budget iegisla-
ton, Another and not less important aspect
Of the problem is the ascertainmcnt Of the
economy and efficiency with which the mon
eys appropriated are expended. Under cx-
sting law the only audit is for the purpose
of asccrtaining whether expenditures have
been lawfully made within the appropria-
tion, No one is authorized or equipped TO
ascertain whether the money has been spent
wisely, economically and effectively
The auditors should be highly trained Of
hcials with permanent tenure in the treasury
department, free OF obligations to, or mo-
tives Of consideration for this or any sub
sequcnt administration, and authorized and
empowered to examine into and make re-
port upon the methods employed and the re-
suits obtained by the executive departments
Of the government. Their reports should be
made to the Congress and to the secretary OF
the treasury.
| trust that the Congress win give its i'm
mediate consideration to the problem Of fu-
ture taxation. Simplifcation Of the income
and profits taxes has become an immediate
necessity. These taxes performed indispens-
able service during the war. They must,
however be simplifed. not only TO save the
taxpayer Inconvenience and expense, but in
order that his liability may be made certain
and definite.
With reference to the details OF the reve-
nue law, the secretary of the treasury and
the commissioner Of internal revenue viii
lay before you for your consideration certain
amendments necessary or desirable in con-
nection with the administration Of the law
recommendations which have my approval
and support, 1t is Of the utmost importance
that in dealing with this matter the present
law should not be disturbed so far as re-
CARDS taxes for the calendar year 1920, pay
able in the calendar year 1921. The Con-
grezs might well consider whether the high
or rates of income and profit taxes can in
peace times be effectively productive OF rev.
enue and whether they may not on The con-
trary, be destructive of business activity
and productive Of waste and ineffcency.
There il a point at which in peace times
high rates Of income and profits taxes dis
courage energy, remove the incentive TO new
enterprise encourage extravagant expendi-
tures and produce industrial stagnation with
consequent unemployment and other attend
ant evils.
The problem is not an easy one. A funda-
mental change has taken place with refer
ence to the position of America In the
worlds affairs. The prejudice and passions
engendered by decades of controversy be-
tween two schools of political and economic
thought the one believers in protection Of
American industries, the other believers in
tariff for revenue only-must be nubordinat-
ed to the single consideration of the public
interest in the light Of utterly changed con-
ditions. Before the war America was heav-
lily the debtor Of the rest Of the world and
the interest payments she had to make 10
foreign countries on American secur-
ties held abroad, the expenditures of Amer
lean travelms abroad and the ocean freight
charges she had TO pay TO others. about bal
aneed the value of her pre-war favorable
balance of trade. During the war Americas
exports have been greatly stimulated and in
creased prices have increased their value
On the other hand, she has purchased a
large proportion of the American Eecurities
held abroad, has loaned some $4,000 100000
to foreign governments and has built her
own ships. Our favorable balance of trade
has thus been greatly increased, and Europe
has been deprived of the means Of meeting
it therefore, existing. Europe can have only
three ways of meeting the favorable balance
Of trade in peace times, by imports into this
country Of gold of goods, or by estab-
fishing new credits. Europe is in no posi-
ton at the present time to ship gold to US
nor could we contemplate large further inn
ports Of gold into this country without con-
ccrn. The time has nearly passed for inter-
national governmental loans, and it will take
time to develop in this country a market
for foreign securities. Another thing here
tofore which would tend to prevent foreign
countries from settling for our exports by
shipments Of goods into this country could
only have the effect Of preventing them from
paying for exports and therefore of
preventing the exports from being made.
The productivity of the country greatly slim
ulatcd by the war must find an outlet by
exports TO foreign countries and any meas
ures taken TO prevent imports win inevitably
curtail exports, force curtailment of produc-
ton, load the banking machinery of the
country with credits to carry unsoid prod
ucts and produce industrial stagnation and
unemployment. If we want to sell, we must
be prepared to buy. Whatever, therefore
may have been our views during the period
Of growth of American business concerning
tariff legislation, we must now adjust our
own economic life to a changed condition
growing out Of the fact that American bust
ness is full grown and that America is the
greatest capitalist in the world.
No Policy of Isolation.
No policy Of isolation will satisfy the grow
ing needs and opportunities of America. The
provincial standards and policies of the past
which have held American business as If in
straghtjacket, must yield and give way
to the needs and exigencies of the new day
IN which we live, a day full of hope and
promise for American business If we will but
take advantage of the opportunities that are
ours for the asking. The recent war has
ended our isolation and thrown upon us n
great duty and responsibility The United
States must share the expanding world mar
kets. The United States desires itself only
equal opportunity with the other nations Of
the world and that through the process of
friendly cooperation and fair competition,
the legitimate interests of the nations con
cerned may be successfully and equitably
adjusted.
There are other matters Of Importance
upon which | urged action at the last ses-
sion Of Congrese which are still pressing for
solution. ! am sure it is not necessary for
me again to remind you that there is one
immediate and very practicable question re-