The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1919-12-04
SOME IMPORTANT POINTS
IN PRESIDENTS MESSACE

SOME IMPOk ANl foiNIo
IN PRESIDENTS MESSAGE
To the Senate and House OF Repre-
sentatives:
| sincerely regret that ! cannot De
present at the opening OF TINS SESSION
Of the Congress am thus Prevent-
ed from presenting N d. direc, way
as | could wish the many qucstons
that are pressing r solution &C thls
time. Happily, / have had the aa-
vantage Of the advice OF the heans
of the several executive departments
who have kept in colse touch with AZ
fairs in their detail. and whose
thoughtful recommendations | ear
nestly second.
In the matter of the railroads and
tho readiustments of their affairs
growing out Of Federal control shall
take the liberty at later date OF ao-
dressing you.
Favors Budget System.
| hope that Congress will bring to
a CONCLUSION al this session 'cgisla.
ton looking to tho establishment OF
a budget system.
That there should be one single au-
thority responsible for the making OF
all appropriations, and that appro-
priations should be made not inde-
pendently Of each other, but with
reference to one single comprehen-
sive pl n Of expenditure properly re-
late TO the nations income, there
can be no doubt.
Future Taxation Problem.
trust that the Congress will give
its immediate consideration to the
problem Of future taxation.
Simplification Of the income and
profits taxes has become an imme-
date necessity. These taxes per-
formed indispensable service during
the war. They must. however. be
simplified, not only to save the tax
payers Inconvenience and expense,
but in order that his liability may be
made certain and definite.
With reference 10 the details OF
the revenue laws. the Secretary OF
the Treasury. and the Commissioner
of Internal Revenue will lay before
YOU for your consideration certain
amendments necessary for desirable
in connection with the administra-
ton Of law. recommendations which
have my approval and support.
II is Of the utmost importance that
in dealing with this matter the pres
ent law should not be disturbed so
far as regards taxes for the calendar
year 1920, payable in the calendar
year 1921.
The Congress might we'll consider
what the higher rates OF income and
porfits taxes can in peace times be
effectively productive of revenue,
and whether they may not on the
contrary, be destructive Of business
activity and productive Of waste and
inefficiency
Problem is Complies.
There is point at which in peace
times high rates of income and prof.
It's taxes discourage energy, remove
the incentive TO new enterprise, en-
courage extravagant expenditure,
and produce industrial stagnation.
with consequent unemployment 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 passions engendered by
decades Of controversy between two
schools of political and economic
.hought. the one believers in protcc-
ton Of American Industries, the 9th
n believers in tariff for revenue on
IN. must be subOrdinated TO the single
consideration Of the public interest
in the light of utterly changed con-
ditions.
War Effect on Commerce.
Before the war America was heav-
ily 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
~ ced the value of her prewar favor
eb.e balance of trade.
During the war Americas exports
have been greatly stimulated and in
c. eased prices have increased their
value.
On the other hand. she has pur-
tnhocu inftt PfoPVhta'h VI 's
American securities previously held
abroad. has loaned some $4,000, ,O0O,-
900 10 foreign governments, and has
built her own ships. Our favorable
balance Of trade has thus been great
ly h creased and Europe has been de-
prived of the means of meeting its
hretofore existing claims.
Aid for Soldiers.
There are other matters Of impor-
tance upon which | urged action at
the last session of Congress which
are still pressing for solution. | am
sure il is not necessary for me again
to remind you that there is one inn
mediate and very practicable question
resulting from the war which we
should meet in the most lenient spir-
il. II is a matter Of recognition and
relief fo our soldierx | can do no