The Topeka state journal., 1919-12-02

To the Senate and House of Representa-
! / cincerely regret that cannot be present
at the opening of this session of the con
! ing In as direct way as l could wish the
many questions that are pressing for solu-
tion &C this time, Happily. ! have had
of the several executive departments who
have kept in close touch with affairs in
their details and whose thoughtful recon-
mendations 1 earnestly second. .
reimbursement of their affairs growing out
of federal CONTROL l shall take the liberty
at later date of addressing you.
hope that congress will bring to a
conclusion at this session legislation look
ing to the establishment of budget sys-
tenn. That there should be one single au-
thority responsible for the making of all
appropriations and that appropriations
| should be made not independently of each
other, but with reference to one single COM
prehensive plan of expenditure properly re-,
lated to the nations income, there can be
no doubt. believe the burden Of prepar-
ing the budget must. in the nature Of the
and responsibility concentrated instead of
divided, rest upon the executive. The
and approved or amended by n single COM
mfttee of each house of congress and no
single appropriation should be made by the
congress, except such as may have been
included IN the budget prepared by the ex-
ecutive or added by the particular commit
tee. of congress charged with the budget
legislation.
Another and not less important aspect
of the problem is the ascertainment of the
moneys appropriated are expended. Under
existing law the only audit is for the pur-
pose of ascertaintng whether expenditures
have been lawfully made within the ap-
propriationS. No one is authorized
equipped to ascertain whether the money
has been spent wisely. economically ami
ly trained officials with permanent tenure
In the treasury department, free of obliga-
fx1s-o
or any subsequent administration and au-
thorized and empowered to make report
upon the methods employed and the results
obtained by the executive departments or
the government Their reports should be
made to congress and to the secretary Of
I trust that the congress will give its
immediate consideration to the problem Of
future taxation.
taxes has become Immediate necessity.
These taxes performed indispensable ser
vice during the war. They must however,
be simpllfied, not only to save the taxpayer
Inconvenience and expense but in order
that his ability may be made certain and
With reference to the. details of the
revenue law. the secretary of the treasury
and the commissioner of internal revenue
Will lay before you for your consideration
certain amendments necessary or desirable
in connection with the administration Of
the law--recommendations which have my
approval and support. It is of the ut
most Importance that in dealing with this
matter the present laws should not be
disturbed SO far regards taxes for the
calendar year 1920. payable in the calendar
year 1921 The congress might well con-
slider whether the higher rates Of income
effectively productive of revenue AMI
whether they may not, on the contrary, be
destructive OF business activity and pro-
is point at which in peace times high
rates of income and profits taxes discour-
age energy, remove the incentive to new
enterprise, encourage extravagant expendi-
| lures and produce Industrial stagnation
| with consequent unemployment and other
| attendant evils.
| The problem IS not an easy one, funda-
mental change has taken place with refer
worlds affairs. The prejudice m and d pas Is
| sions engendered by decades Of contro-
versy between two schools of political and
economic thought-the one believers in pro
| lection Of American industries; the others
believers in tariff for revenue only-must
be subordinated to the single consideration
of the public interest In the light of utterly
changed conditions. Before the war Ameri-
! ca was heavily the debtor of the rest of the
world and the interest payments she had
to make to foreign countries on American
| securities held abroad. the expenditures of
American travellers abroad and the ocean
| freight charges she had to pay to others.
! about balance the value of her prewar
| favorable balance of trade. During the war
Americas exports have been greatly slim
ulated and increased prices have increased
| their value.
On the other hand she has purchased a
1
| ties previously held abroad, has loaned
some nine billion dollars to foreign gov
ernments and has built her own ships.
| Our faYorable balance OF trade has thus
been greatly increased and Europe has
been deprived of the means of meeting 1t
heretofore existing. Europe can have only
| ance Of trade in peace times: BY imports
into this country Of gold or of goods. or
in no position at the present time to ship
gold to us nor could we contemplate large
further imports of gold into this country
passed for International governmental
loans and it will take time to develop in
this country a market for foreign secur-
tiles. Anything therefore which would tend
1 to prevent foreign countries from settling
for our exports'by shipments of goods into
this country would only have the effect OF
preventing them from paying for our ex-
tports and therefore of preventing the ex-
Of the country greatly stimulated by the
war must find an outlet by exports to for
eign countries and any measures taken 10
prevent imports will inevitably curtail ex-
ports, force curtailment of production load
| the banking machinery of the country with
| credits TO carry unsold products and pro-
| duce industrial stsgnation and unemploy-
| ment.
II 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 changed condition grow
Ing out of the fact TINT American business
is full grown and that America is the
| greatest capitalist in the world.
| No policy of isolation will satisfy the
growing needs and opportunities of Amer
lea. The provincial standards and poIicie.
of the past, which have held American
| business as II in a straight jacket. mus
| yield and give way to the needs and
| exigencies of the new day in which We live
day full of hope and promise for Amer.
lean business II we will but take advant
age Of the OPPORTUNITIES that are ours fol
| the asking. The recent war has ended
our isolation and thrown upon us a greai
duty and responsibility. The United State,
must share the expanding world market
The United States desires for itself only
equal opportunity with the other nation.
or the world and that thru the process O,
friendly cooperation and fair competition
the Legitimate interests of the nations con
cerned may be successfully and equita BIZ
/ adiugfad