The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-12-02

WdsHluS tOl, bSC. Tcoiucti
Wilson's message to. the Sixty-sixtf
congress was in part, as follows:
To the Senate and House of Rep
resentatfves: 5t
I sincerely regret that / can.
not be present at the opening of
this session of the congress. am
thus prevented from presenting
in as direct a way as | could
wish. the many questions that
are pressing for solution at this
time. Happily, 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
detail and whose thoughtful rec
concentrations earnestly second.
In the matter of the railroads and
the readjustment Of their affairs
growing out of federal control,
shall take the liberty. at later
date of addressing you.
| hope that congress will bring
to a conclusion at this session
legislation looking to the estah-
lishment of budget system. That
there should be one singlee au-
thority responsible for the maxi
ing Of all appropriations and that
appropri6tf0ns "s4fUuld be made
not independently of each other,
but with reference to one single
comprehensive plan of expendi-
ture, properly related to the ma
tions income, there can be no
doubt.
I believe the burden of pre-
pairing the budget must, in the
A,., Is a. t.
to be properly done and RESPONSE
bility concentrated instead of
divided, rest upon the executive.
The budget SO prepared should
be submitted to and approved or
amended by a single committee
of each house of congress and no
made by the congress, except
such as may have been included
in the budget prepared by the
executive or added by the partic-
ular committee of congress
charged with the budget legisla-
tor .rr
Would Provide Auditing.
Another, and not less impor-
tant aspect of the problem is
the ascertainInent Of the economy
and efficfendy With .Whieh. the.
moneys -tepPHepfiated-ar ex-
,' pended. Under existing Jaw the
only audit is for the purpose of
ascertaining whether expendi-
lures have been lawfully made
within the appropriations. No
one is authorized or equipped to
ascertain whether the money has
been spent wisely, economically
nd @1
should be highly trained officials,
with permanent tenure in the
treasury department, free of OBJ
legations to or motives of con-
sidel alton for this or any subse-
quent administration, and au-
thorized and empowered to eX-
anime into and make report upon
the methods employed and the
results obtained by the executive
departments of the government;
their reports should be made to
the congress and to the secretary
of the treasury.
| trust that the congress will
give its immediate consideration
to the problem of future taxa
ton. Sinplification of the in
come and profits taxes has be-
These taxes performed indispen-
sable service during the war.
They must however, be simpl-
fled, not only to save the tax
payer inconvenience and expense,
but in order that his liability may
be made certain and definite.
With reference to the details
of the revenue law, the secretary
n mi c
s,oner of internal revenue will
lay before you for your consid-
GRAFTON certain amendments
necessary or desirable in connec-
ton with the administration T
the law-recommendati which
have my approval and support.
Il is of the utmost Importance
that in dealing with this matter
the present law should not be
disturbed so far as regards taxes
for the calendar year 1920, pay
able in the calendar year 1921.
The congress might well consider
whether the higher rates of in
come and profits taxes can III
peace times be effectively produc-
tive of revenue, and whether they
may not, on the contrary, be de-
Structive of business activity
and productive of waste and in
efficiency. There is a point at
which in peace time high rates
of income and profits taxes dis
courage energy, remove, the in
centive to new enterprise, en-
courage extraVagant eXpendi-
lures and produce industrial
stagnation, with consequent un-
employment and other attendant
evils.
Not Easy Problem.
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 passions engendered by
decades of controversy between
two schools of political and eco
nomic thought-the one believers
in protection of American indus
tries the other believers in tariff
for revenue only-must be subor-
dinated to the consideration of
the public interest in the light
of utterly changed conditions.
Before the war America was
heavily the debtor of the rest of
the world and the interest pay
ments 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 balanced
the value of her pre-war favor
able balance of trade. During the
war Americas exports have been
or. atly stimulated and increased
prices have increased their value.
On the other hand, she has pur-
chased a large proportion of the
American securities previously
held abroad, has loaned some
$4,000, 100000 to foreign govern
ments and has built her own
ships. Our favorable balance OF
trade has thus been greatly in