The patriot. (Glenmora, La.) 1918-1955, 1919-12-12

ments necessary or desirable iN~eons
ncction with tie administration OF
the INSTRUMENTATION which
have my approval and support. 1t is
of the utmost importance that in deal
ing Nithsthis matter the present Law
shoaid -not be disturbed so far as re-
CARDS takeEfor the calendar year
1920. payable in the calendar year
1921. The Congress might well con-
slider whether the higher rates of in
come and profits taxes can In peace
times be effectively productive OF rev
enue and whether they may not on
the contrary be destructive of busi-
ness ACTIVITY and productive of waste
and inefficiency. There is point at
which in peace times high rates OF
income and profits taxes discourage
energy, remove the incentive to new
enterprise, encourage extravagant ex,
penditures and produce industrial
stagnation with consequent unem'
ployment and other attendant evils.
The problem is not an easy one. A
fundamental change has taken place
with reference to the position OF
America in the worlds affairs. The
prejudice and passion engendered by
decades of controversy between two
schools of political ard economic
thought-the one believes In protec-
tion of American industries. the other
believers in tariff for revenue only
must be subordinated to the single
consideration of the public interest
in the light of utterly changed condi
tions. Before the war America waa
heavily the debtor of The rest of the
world and the interest payments she
had to make to foreign countries on
American securities held abroad, the
expenditures of American travellers
abroad and the ocean freight charges
she had to pay to others, about bal
anced the value of her pre-war favor
able balance of trade. During the
war Americas exports have beer
greatly stimulated, and increased
prices have increased their value. On
the other hand, she has purchased :
large proportion of the American So
euritfes previously held abroad. has
leaned some $4,000. 009,o oo to foreign
governments. and has built her owl
ships. Our favorable balance of trade
has thus been greatly increased ant
Europe has been deprived Of tht
means of meeting it heretofore exist
ing. Europe can have only tlref
ways of meeting the favorable bal
ance OF trade in peace times. BY I'M
ports into this country of gold or ot
goods, or by establishing new credits
Europe is in no position at the pres
ent time TO ship gold to US nor couls
we contemplate large further In,
ports of gold into this country with
out concern The time mas nearl,
passed for international government
al loans and it will take time to de
velop in this country a market TO
foreign securities Anything, there
fore which would tend to prevent for
eign countries from settling for on
exports by shipments of goods int
this country could only have the 81
feet or preventing them from payinI
for cur exports and therefore Of pre-
venting the exports from being made
Tho productivity OF the country great
| III stimulated by the war. must fin,
m outlet by exports to foreign coun
tries and any measures taken to pro
vent imports will inevitably curtal
exports, force curtailment of prodns
tion, load the banking machinery Q
| the country with credits to carry VI
sold products and produce industria
stagnation and unemployment II W
want to sell. we must be prepared :
| buy. Whatever, therefore, may hav
been our views during the period d
growth of American business coEcerT
ing tariff legislation, We must mo-
adjust our own economic life to
changed condition growing out of tn
fact that American business Is III
grown and that America Is the grea
est capitalist in the world.
Sscoiation Not y. s. Policy.
| Mo policy Of isolation will satIsi
the growing needs and opportunitis
Of America. The provincial stan.
ards and policies Of the past, whIc
nave held American business rs n
strai1ht-Iacket, must Yield and CIV
uav fc the needs Of exiuepcies az Il,