The Washington times., 1919-12-02
Presidents Message
To The Congress

The text Of the Presidents message Congress follows:
To the Senate and House of Representatives:
sincerely regret that cannot be present at the open
ling OF this session Of the Congress thus prevented
from presenting in direct way could wish the
many questions that 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 their detail and whose thought
full recommendations l earnestly second
In the matter of the railroads and the readusmen Of
their affairs growing of Federal control shall take the
liberty at later date of addressing you.
hope that Congress will bring to conclusion at this
legislation looking the establishment of budget
system That there should be single authority RESPONSE
for the making of all appropriations and that propra
tons should be made independently of each other but
with reference to single comprehensive plan Of expend
ure properly related the nations income there be
ho doubt believe the burden of preparing the budget
must in the nature of the case if the work is b be prop
erly done and responsibility concentrated instead M
rest upon the executive. The budget preps lhd1d
be submitted to and approved amended by - }1
lmttee Of each house of Congress and single pnr
ton should be made by the Congress Eexcept -
have bsen included IN the budget prepared by II
or added by the particular committee of Cong}
with the budget legislation. x 81 =
Urges Permanent Auditors in Treasury
Another and not less important aspect of the problem
lis the ascerainment of the economy and efficiency with
the moneys appropriated expended Under exist
ing law the only audit for the purpose of asceraning
whether expenditures have been lawfully made within the
appropriations. No is authorized equipped to
tain whether the money has been spent wisely economically
and effectively. The auditors should be highly trained Off
cals with permanent tenure in the Treasury Department
free of obligations motives of consideration for this
any subsequent Administration and authorized and
powered to examine into and make report upon the methods
employed and the results obtained by the executive depart
mens 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
sderation to the problem of future taxation Smplcaton
of the income and profits taxes has become immediate
necessity These taxes performed Indispensable service
during the They must, however be smpfed, not
only the taxpayer inconvenience and but in
order that his liability be made certain and definite
Taxes to Stand For Next Year
With reference the details of the revenue law the
Secretary the Treasury and the commissioner of internal
will lay before you for your consideration certain
amendments necessary desirable connection with the
administration of the recommendations which have my
approval and support 1t is of the utmost Importance that
in dealing with this matter the present law should not be
disturbed far regards taxes for the calendar 1920
payable in the calendar year 1921 The Congress might
well consider whether the higher rates of income and profits
taxes can peace times be effectively productive of
enue and whether they may not the contrary, be
stctve of business activity and productive of waste and
nefcency There is point at which in peace times high
rates of income and profits discourage energy
the incentive to enterprise encourage extravagan
pendures and produce industrial stagnation with
auent unemployment and Othss attendant evils.
The problem is not an easy one fundamental change
has taken place with reference to the position of America
in the worlds affairs The prejudice and passions enge
dered by decades of controversy between two schools of
political and economic thought-the believers in pro-
lection of American industries the other believers in tariff
for onlymus be subordnated to the single
sideraon of the public interest in the light of utterly
changed conditions Before the America heavily
the debtor of the rest of the world and the interest pay
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