The Ordway new era., 1919-12-12

are pressing for solution at this time.
Happily, I have had the advantage of
the advice of the heads of the several
executive departments who have kept
in close touch with affairs in their de
tail and whose thoughtful recommend
a,ions earnestly second.
In the matter of the railroads md
the rendjustment of their affairs grow
ing out of federal control, | shall take
the liberty ut a later day of address
Ing you.
Urges National Budget.
hope that Congress will bring to a
conclusion Mt this session legislation
looking to the establishment of bud
get system. That there should he one
sincel authority responsible for the
making of all appropriations and that
appropriations should he made not in
dcpendcntly of each other. but with
reference 10 one single comprehensive
plan OF expenditure properly related
90 the hation's income, there can he no
doubt. | believe the burden of prepnr
ing the budget must, in the nature Of
the case, II the worl, is to be properly
done and responsibility concentrated
Instead of divided, rest upon the eNccu-
ufiyc.
The budget 50 prepared should he
submitted 10 and approved or amend
ed by single committee of each house
of Congress and no single appropra-
ton should be made by the Congress
except such MS may have been includ
cd in the budgst prepared by the -eN-
ccutive Of added by the particular com
mittee of Congress charged with the
budget legislation.
Permanent Tenure of Office.
Another and not less important
aspect of Tile problem is the ascertain
ment OF the economy and efficiency
with which the moneys appropriated
are expended Under existing law
the only audit is for the purpose of
ascertainlng whether expenditures
have been lawfully made within the
appropriations. No one is authorized
or equipped 10 ascertain whether the
money has been spent wisely, econom
lcally and effectively.
The auditors should be highly
trained officials with permanent ten
ure in the Treasury Department, free
of obligations to or motives of consid-
GRAFTON for this or any subsequent ad'
mlnistra.ion and authorized and EN-
powered 10 examine into and make re-
port upon the methods employed and
the results obtained by the executive
departments of the government. Theii
reports should be made to the Con
gress and to the secretary of the
treasury.
trust that the Congress will give
It's immediate consideration to The
problem of future taxation. SImpli
flcation of the income and profits
taxes has become an immediate neces
sity. These taxes performed indispen
sable service during the war. The,
must, however, be. simplified, not only
TO save the taxpayer Inconvenience,
and expense, but in order that his liza
hility may be made certain and def
mite.
Questions of Tax in Peace Time.
With reference to the details of The
revenue law, the secretary of th'
treasury and the commissioner OF in
ternal revenue will lay before you fol
your consideration certain amend
inents necessary or desirable in con
ncction with the administration of tn,
inw-recommendation which have m.
approval and support.
II is of the utmost Importance tha
in dealing with this matter the pres
ent law should not he disturbed 5,
Tar as regards taxes for the calenda
year 1920 payable in the calenda
year 1921.
The Congress might well considc
whether the higher rates of incom
and profits taxes can in peace time
he effectively productive of revenu
and whether they may not, on the cor
irary, be destructive of business a'
uviiy and productive of waste and IN
efficiency.
There is a point at which in pcac
times high rates of income and pro-
lis taxes discourage energy, remov
the incentive TO new enterprise, eT
courage extravagant expenditures an
Droduce industrial stagnation wit
consequent unemployment and 9th,
attendant evils.
Americas Position.
The problem is not an easy one.
fundamental change has taken plac
with reference TO the position of Anne
lea in The worlds affairs. The pref,
dice and passions engendered by de-
ades OF controversy between tw
schools of political and economl