Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-20

and the taxes upon retail sales. They
are unequal in the incidence on diff
ferent industries and on different in
diyiduals. Their collection Is difficult
and expensive. Those which are lew
led upon articles sold at retail ara
largely evaded by the readjustment
of retail prices. On the other hand,
/ should assume that IT Ia expedient
to maintain a considerable range Of
indirect takes: and the fact that al
coholic liquors will presently no long
or AFFORD a source Of revenue by tax
that the field should be carefully re-
studied in order that equivalent
sources Of revenue may be found
which 1t will - legitimate, and not
burdensome to draw upon. But you
have at hand in the Treasury Depart
ment many experts who can advise
you upon the matters much better
than 1 can. / can, only suggest the
lines of q permanent and workable
system. and the placing of the taxes
where they will least hamper the life
of the people.
General Tariff Policy.
There ia, fortunately. no occasion
for undertaking in the immediate fu-
ture any general revision of our sys-
tenn of import duties. No serious dam,
ger of foreign competition now threat
ems American Industries. Our coun-
try has emerged from the war less
disturbed and less weakened than any
of the European countries which are
our competitors in manufacture. Their
Industrial establishments have been
subjected to greater strain than ours,
their labor force to q more serious
REORGANIZATION. and this ia clearly
not the time to sock an organized ad-
vantage. The work of mere recon-
struction will. I am afraid. tax the
capacity and tho resources Of their
people for years to come. 30 far from
there being any danger or need of ac-
centuated foreign competition. 1t is
likely that the conditions Of tho next
few years will greatly facilitate the
marketing Of American manufactures
abroad. Least of all should we de-
part from the policy adopted in the
tariff act of 1913. of permitting tho
free entry into the United States Of
the raw materials needed to supple
ment and enrich our own abundant
supplies.
Nevertheless. there are parts of eur
tariff system which need prompt at
tention. The experiences of the war
have made 1t plain that in some cases
too great reliance on foreign supply
Is dangerous. and that in determining
certain parts Of our tariff policy do
nestle considerations must be borne
in mind which are political as well as
economic. Among the industries to
which special consideration should be
given is that of the manufacture Of
dyestuffs and related chemicals. Our
complete dependence upon German
supplies before the war made the in
terruption of trade a cause of excep-
tional economic disturbance. The
close relation between the manufac-
turer of dyestuffs. on the one hand,
and of explosives and poisonous
gases. on the other. moreover. has
given the industry an exceptional sig
nificance and value. Although the
United States will gladly and unhesi-
tatingiy Join in the program of in
ternational disarmament, it will. new
ertheless, be a policy of obvious pru-
dence to make certain of the success
full maintenance of many strong and
we'll equipped chemical plants. The
German chemical industry. with
which we will be brought into COM
petition. was and may we'll be again.
thoroughly knit monopoly capable
of exercising a competition of a pc
culiariy insidious and dangerous kind.
Means of Protection.
The United States should. moreover,
have the means of properly protect
ing itself whenever our trade is dis
criminated against by foreign ma
lions, in order that we may be as
sured OF that equality Of treatment
which we hope to accord and to pro-
mote the world over Our tariff laws
as they now stand provide no weapon
of retaliation in case other govern
ments should enact legislation I'M
equal in its bearing on our products
as compared with the products Of
other countries. Though we are as
far as possible from desiring to enter
upon any course of retaliation, We
must frankly face the fact that hos
tile legislation by other nations is
not beyond the range of possibility,
and that it may have to be met by
counter legislation. This subject has.
fortunately, been exhaustively inves-
tigated by the United States tarin
commission. A recent report OF that
commission has shown very clearly
that we lack and that We ought to
have the instruments necessary for
the assurance Of sQuG1f and Squttanls