The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-05-20

my 10 ~
Scientific Opticians
he constant in its revenue increasing
mower. We have found main sources
: from which it must be drawn. take
il for granted that its mainstays VII
,henceforth be the income tax, the eA
cess profits tax and the estate tax. Al
!, these can so be adjusted to yield con
! slant and adequate returns and ye
mot constitute too grievous burdeI
on the tax payer. A revision of the IN
come tax has already been provided
4 for by the act of 1918, but ! thinB
YOU will find that further changes car
be made to advantage both in the
rates Of the tax and in the method OIL
its collection. The excess prorlts TAX
need not long be maintained at the
rates which were necessary while the
enormous expenses of the war had to
be borne: but 1t should be made the
basis of a permanent system which
will reach undue profits without dis
ccuraging the enterprise and activity
Of our business men The tax on in
Iheritance ought, no doubt, to be re,
considered In It's relation to the fiscal
systems Of the several states, but it
certainly ought to remain perma
nent part of the fiscal system of the
ederal government also.
! Many of the minor taxes provided
for in the revenue legislation of 1917
and 1918 though no doubt made neces.
isary by the pressing necessities OF
the war time, can hardly find suffi-
icient Justification under the easier
circumstances Of peace and can now
happily be got rid Of Among these,
l hope you will agree. are the excuses
upon various manufactures and the
taxes upon retail sales. They are I'M
equla in the incidence on different
equal in the incidence on different
/ Industries, and on different indiyi-
and expensive Those which are lev
lied upon articles sold at retail are
largely evaded by the readjustment Of
retail prices. On the other hand, l
should assume that it is expedient to
maintain considerable range of in
direct taxes; and the fact that aico-
holic liquors will presently no longer
afford source of revenue by taxa
ton makes 1t the more necessary that
the field should be carefully re-estab-
lished in order that equivalent sources
or revenue may be found which 1t will
| re legitimate, and not burdensome, to
draw upon. But you have at hand in
the treasury department, many ex-
Iperts who can advise you upon the
matters much better than | can
" Of
inent and workable system and the
placing of the taxes where they will
least hamper the life of the people.
There is, fortunately. no occasion
for undertaking in the immediate fu-
ture any general revision of our sys-
tom of import duties. No serious dan
ger Of foreign competition now threat
ems American industries Our coun-
try has emerged from the war less
disturbed and less weakened than any
CT the European countries which are
our competitors in manufacture. Their
industrial establishments have been
subjected to greater strain than ours,
tEeir labor forced to a more Serious
disorganization, and this is clearly
rot the time to seek an organized adj
vantage. The work of mere recon-
struction will, l am afraid, tax the
capacity and the resources of their
people for years to come SO far from
there being any danger. or need of ac-
c.ntuated foreign competition is likely
conditions of the next few years will
greatly facilitate the marketing of
American manufactures abroad. Least
OF all should we depart from the pol
ley adopted in the tariff act of 1913. of
permitting the free entry into the
United States of the raw materials
needed to supplement and enrich our
own abundant supplies.
Nevertheless, there are parts Of
our tariff system which need prompt
attention The experiences of the
war have made it plain that in some
cases too great reliance on foreign
supply is dangerous and that in de-
termining certain parts of our tariff
policy domestic considerations must
be borne in mind which are political
as well as economic Among the in
dusTtes to which special considera-
ton should be given is that of the
manufacture of dyestuffs and related
chemicals. Our complete dependence
upon German supplies before the
war made the interruption Of trade
cause Of exceptional economic dis
turbance. The close relation between
the manufacture of dyestuffs on tho
one hand and of explosives and poi
sonous gases on the other, moreover,
has given the industry an exceptional
significance and value. Although the
United States will gladly and unhesi.
tatingly join in the program of inter
national disarmament, it will never
theless be a policy of obvious pr,,-
deTEe TO make certain Of the sue
cessful maintenance of many strong
and well equipped chemical plants.
The German chemical industry, with
which we will be brought into com
petition, was and may. well be a
thorough monopoly capable of exer-
cising competition of a peculiarly