Grand Forks herald., 1919-05-20

but machinery and raw materials and !
capital. I believe that our business
men, our merchants, our manufac-
turers and our capitalists will have
the vision to see that Prosperity In
ono part OF the world ministers to
prospe everywhere; that there Is
~ 'a' very true sense q solidarity aof
terprtssSS and tfat our dealings with
the countries that have need Of our
products and our money will teach
them to deem Is more than ever
friends whose Necessities we seek in
the right way to serve. ~ 5ss4:, sf s.
Our new merchant; ships which
have In some, quarters been Feared, as
destructive rivals, may prove helpful
rivals, rather, and common servants,
very much needed and very welcome.
Our great shipyards new and old,
will be 50 opened to the use of the
world that they will prove 4immenSe-
" serviceables to every maritime apeG-
pie in restoring, much more rapidly
sible. the stonnage wantonly DESTROYED
IN the war. 4 have only tasuggest
that there are many points at which
we can facilitate American enterprise
In foreign trade by opportune legisla-
ton and make it easy for American
welcomed as friends rather than
dreaded antagonists. America, has
great and honorable service to per-
form In bringing the commercial and
industrial undertakings of the world
back to their old scope and swing
again. and putting solid structure
Of credit under them. All our legisla-
ton should be friendly to such plans
and purposes.
And credit and enterprise alike will
be quickened by timely>Ahd helpful
legislation with regard to taxation. i
hope that the congress will find 1t
possible to undertake an early re-
to make our system of taxation more
simple and easy Of administration and
the taxes themselves as little burden
some as they can be made and yet
suffice to support the government
and meet all its obligations. The fig
ures to which those obligations have
arisen are very great indeed but they
are not 30 great as toy make 1t diff
cult for the nation to meet them and
meet them. perhaps. in single gen.
GRAFTON, by taxes which will neither
crush nor discourage. These are not
so great as they seem, not SO great as
the immense sum we have had to
we have had to raise by taxation,
would seem to Indicate; for a
very large proportion Of those
sums were raised in order that
they might be loaned to the gov
ernments with which we were
associated in the war and those
assets, not liabilities, and will not have
to be taken care of by our taxpayers.
The main thing we shall have to care
for is that our taxation shall rest as
lightly as possible on the productive
resources of the country, that its rates
shall be stable. and that it shall be
constant in its revenue yielding pow
er. We have found the main sources
from which it must be drawn. / take
it for granted that it's mainstays will
henceforth be the income tax, the ex-
cess profits tax and the estate tax. All
these can SO be adjusted to yield con-
slant .and adequate returns and yet
not constitute too grievous burden
on the taxpayer. A revision of the
income tax has already been provided
will find. that further changes can be
made to advantage both in the rates
Of tax and the method Of it's collec-
ton. The excess profits tax need not
long be maintained at the rates which
were necessary while the enormous
expenses Of the war had to be borne;
but it should be made the basis for a
permanent system which will reach
undue profits without discouragfng g
the enterprise and activity Of our
business men. The taxes on Inherit
ances ought, no doubt, to be reconsid-
4 cred in its relation to the fiscal sys-
tens OF the several states,H but it cer7
tainly ought to remain permanent
part Of the fiscal system Of the fed
eral government also.
4 Many Of our minor taxes provided
"{v> Na Lao ell X 4 nj
and 1918 though no doubt made
necessary by the pressing B necessities
4 Of wartime could hardly find suffi-
! cient justification under the easier cir
cupstances Of peace and can now
happily be got rid of. Among these,
i hope you will agree, are the excuses
upon various manufactures and the
tax upon retail sales. They are un-
equal IN the incidence on different in
dustries and on different individuals
). Their collection is difficult and expen-
sive. Those which are levied upon ar
ticles sold at retail are largely evad-
ed by the readjustment of retail
prices. On the other hand I should
q assume that 1t is ,expedient to main
tain q considerable range of indirect
taxes: and the fact that alcoholic
liquors will presently no longer af-
ford source Of revenue by taxation
makes 1t the more necessary that the
field should be carefully re-studied in
order that equivalent sources of rev.
enpe may be found which it will be
Legitimate and not burdensome to
draw upon! But you have at hand. in
the treasury department many experts
who can advise you on the matters
much better than I can. can only
suggest the lines Of a permanent and
workable system, and the placing of
the taxes where they will least ham
per the life.of the people.
There ts fortunately, no occasion
Tor undertaking the immediate fu-
ture, any Eaneral revision Of our sys-
tom OF tmpoft duties. No serious dan
ger Of foreign competition now
threatens American industries Our
country has emerged from the war
less weakened than any of the Euro
pean countries which are our competi-
tors IN manufacture. Their industrial
establishments have been subjected to
greater strain than ours. their labor