Bisbee daily review., 1919-05-21
ADVISES PROHIBITION REPEAL

- iOdueu lO lHe governments Wlln
 which we were associated in the war
 and those loans will, of course consti-
 ute assets, not liabilities, and will
 not have to be taken care of by our
 taxpayers.
 Would Reform Excess Tax
 The main thing we shall have to care for is that our taxation shall rest
 as lightly as possible on the produc-
 tixe resources of the country, that it's
 rates shall be stable and that it shall
 be constant in its revenue-yielding power. We have found the main
 sources from which it must be drawn.
 take it for granted that its mainstays
 will henceforth be the income tax,
 the excess profits tax, and the estate
 tax. All these can so be adjusted to
 yield constant and adequate returns
 and yet not constitute too grievous
 burden on the taxpayer. A revision
 of the income tax has already been provided for by the act of 1918, but
 think you will find that further Ichanges can be made to advantage,
 both in the, rates of tax and the meth
 cd of it's collection. The excess prof
 its 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 of a permanent system which
 will reach undue profits without dis
 couraging the. enterprise and activity of our business men. The tax on in-
 heritances ought, DO doubt, to be re-
 considered in its relation to the fiscal
 systems, of the several states, but it
 certainly ought to remain a permanent part of the fiscal system of the fed
 eral government also.
 Asks Retail Tax Repeal
 Many of the minor taxes provided
 for in the revenue legislation of 1917
 and 1918, though no doubt made neces-
 sary by the pressing necessities of
 war time, could hardly find sufficient
 Justification under the easier circum-
 stances of peace and can now happily
 be got rid of. Among these, hope
 you will agree, are the excises upon
 various manufacturers and the taxes upon retail sales. They are unequal in the incidence on different indus
 tries and on different individuals. Their collection is difficult and ex-
 pensive. Those which are levied upon
 articles sold at retail are largely evad-
 led by the readjustment of retail prices. On the other hand I should assume
 that it is expedient to maintain con- . siderable range of indirect taxes; and
 the fact that alcoholic liquors will presently no longer afford source of revenue by taxation makes it the more necessary that the field should he 't carefully re-studied in order that equivalent sources of revenue may be found which it will be legitimate and not burdensome to draw upon. But you have at hand in the treasury de partment many experts who can ad' wise you upon the matters much better r than I can. I can only suggest the 1 lines of a permanent and workable ; system, and the placing of the taxes where they will least hamper the life of the people.
 European Competition Nil
 There is, unfortunately, no occasion ) for undertaking in the immediate flu $ ture any general revision of our sys tenn of import duties. No serious dan + ger of foreign competition now threat l ems American industries. Our coun r try has emerged from the war les: n disturbed and less weakened than any r of the European countries which art n our competitors in manufacture. Theil
 industrial establishments have beer
 subject to greater strain than ours e their labor force to a more serious j. Reorganization and this is clearly no | the time to seek an organized advant 5, age The work of more reconstruction }. will. I am afraid, tax the capacity ant l, the resources of their people for year e to come So far from their being an. y danger or need of accentuated foreigl e competition, it is likely that the condi n tions of the next few years vii ?, greatly facilitate the marketing O n American manufactured goods abroad t Least of all should we depart from tn Q policy adopted in the tariff act o A 1JlOs OA NiAC AACOTOANAy AAAe n the United States of the raw ma r- terials, needed to supplement and CT l. rich our own abundant supplies.
 l. Protect Chemical Industy
 ltf Nevertheless, there are parts of ou n tariff system. which need prompt a B. tention. The experiences of the wa k have made it plain that in some case l, too great reliance on foreign suppl it is dangerous and that in determinin c certain parts of our tariff policy dC r. nestle considerations must be Dor
 in mind which are political as well a
 economic. Among the industries 'e which special consideration should b S. given is that of the manufacture ( 'e dyestuffs and related chemicals. Gu ie complete dependence upon Germa m supplies before the war, made the il IT terruption of trade d cause of excel Id tional economic disturbance. Th