Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-10
Tightening Of Capital Predict
ed If High Taxes Con-
tinue.

tu III illyn AdACS OUh
tinue.
New York, May S.-We are now ap
preaching the final stage Of peace nego
tiations when bitches and delays should
cause no surprise. 1t must be remem
bcred that in order to make an, p.ug
rcss the toughest problems were put off
till the end, and the way of least re-
sistanee naturally prevailed in the early
parleys. While Italy viii probably com
promise, it is in her power TO cause con.
S;dcrahly delay and irritation. Germany
may balk at the drastic peace terms
which will be imposed upon her, though
submission is inevitable. The only hope
4 foy rapid settlement depends upon a
realization of German statesmen rnat
their larger and permanent interests lie
m prompt acquiesenee. Italy n,s... .,c.
ognize the large gains that she has made
would have been impossible without al.
lied aid; and vanquished Germany may
as well submit promptly and gracefully
TO the inevitable As soon as peace Is
I signed practically all remaining trade
restrictions viii disappear; and the next
question TO occupy diplomats will be the
making Of new international treaties,
the war having swept away most of
those existing between belligcrent coun.
tries. Much difference OF opinion will
doubtless develop between those who
seek wider international intercourse and
those who desire to penalizc enemy eoun
tries. The mflietion Of penalties will
call for much wisdom and self-reslraint;
for it would prove unintelGgent and
against our own interest to name suit.
able indemnitics and then impose condi.
tions making payment impossible.
Hope in the New Congress.
\ special session of congress is like.
ly to be called in the middle of NAV.
1t will be more occupied with practical
reconstruction than with visionary re-.
FORMS Of which the country uus nud r
surfeit for the past decade. Taxation,
appropriations, railroads, tariff and
treaties viii labsorb Washington i atten.
tion for some months to comc and the
extra session promises to be i,.ns ..,,.
Economy also is one of the most urgent
questions demanding attention. Before
the war, this was u billion dollar eoun.
try. This eurrtnt year federal expenses
will reach $l8,000,000 or $4,000, ,000, 900
and the pro c3pec S Of a radical reducrion
arc not very encouraging. There is
prospect of the country facing heavy
loss this year on shipbuilding, A.. the
railroads and on the wheat crop guaran.
teed price. It is quite certain that this
years wastage after the war ended
viii be no: far from $l0,000,000. 1t is
true considerable reduction of expenses
will be secured by partial disbanding Of
the army, but the proceeds Of the Fifth
Victory loan have already been largely
spent, and with such heavy expendi-
lures or losses to met it is plain no
great reduction Of taxes will be possible
during the coming year. These are I'M.
pleasant facts, but they might as well
be faced. There is only one solution
of this difficulty and that is economy,
not only by the federal government but
equally SO by state ana municipal au
throughout the country. The
word economy seems to have been elm
mated from our vocabulary, and it has
been foolishly popular among those who
Govern TO increase taxes rather than cut
expenses. 1t is much more popular to
strike wealth through taxation than to
stop public waste and extravaganza
Unless some effective effort is made to
crtail taxation and curb the soeialistic
feryor for destroying wealth. capital
will leave the country and deprive both |
labor and industry Of their cmef ncues- |
Sity. No time should be lost BY busi. |
ness men in impressing upon congress
the urgency for economy in expenses:
also fair treatment Of capital, which, |
ike labor, will 60 where it receives tho 1
best rewards.
Failure OF Government Operation.
Government operation Of railroads, |
-cicgraphs and telephones has proved a
FAILURE. However necessary it may nayu
been to take over these instrumentah.
.les as war measure, it has beenamply |
proved that the government is absolute
y incapable Of securing the efficiency
md economy Of operation attained un.
Ter private enterprise. Expenses rise
lpon a scale that would mean pspa.
uptey if the government did not tax
he people to meet losses: all because
NAT same government lacked the eour
ge TO hold wage demands within tbe
bounds Of reason Not even q heavy In.
tease IN passenger and freight rates
oud meet these demands, which must