Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-05-20

income tax has already been
provided for by the act of 1918,
but l think you will find that
further changes can be made
to advantage both in the rates
of tax and the method of its
collection. The excess profits
tax need not long be maintain
ed at the rates which were
necessary while the enormous
expenses of the war had to be
born; but it should be made
the basis or a permanent sys-
tenn which will reach undue
profits without discouraging
the enterprise and activity of
our business man. The tax on
inheritaHces ought, no doubt,
to be reconsidered in it's rela-
ton to the fiscal systems of
the several states, but it Ger
tainIy ought to remain a per-
manent part of the fiscal sys-
TEN of the federal government
also.
Would Remove Minor Taxes.
Many of the minor taxes pro-
vided for in the revenue legis-
lation of 1917 and 1918 though
no doubt made necessary by
the pressing necessities of war
time could hardly find suffi-
cient Justification under the
easier circumstances of peace
and can now happily be got rid
of. Among these, 1 hope you
will agree, are the excuses
upon various manufactur
and the taxes on retailers.
They are unequal in the incl
dence on different industries and
on different individuals. Their
collection is difficult and ex-
pensive. Those which are lev
led upon articles sold at retail
are largely evaded by the re-
adjustment of retail prices. On
the other hand, l should as
sumo that it is eXpedient to
maintain a considerable range
OF indirect taxes; and the fact
that alcoholic liquors will pres
emily no longer afford a source
or revenue by taxation makes
it the more necessary that the
field should be carefully re-
studied in order that equivalent
sources of revenue may be
found which it will be legiti-
mate and not burdensome to
draw upon. But you have at
hand in the treasury depart
ment many experts who can
advise upon the matters much
better than l can. l can only
suggest the Lines of a perma-
nent and workable system, and
the placing of the taxes where
they will least hamper the life
OF the people.
No Cause for Worry.
There is, fortunately, no oc-
casfon for undertaking in the
immediate future any general
revision OF our system of import
duties. No serious danger OF
foreign competition now threat
ems American industry. Our
country has emerged from the
war less disturbed and less
weakened than any of the Eu-
ropean countries which are our
competitors in manufacture.
Their industrial establishments
have been subjected to greater
strain than ours, their labor
force to a more serious disor-
ganization and this is clearly
not the time to seek an organ
lied advantage. The WORK or
mere reconstruction will, | AM
afraid, tax the capacity and the
resources of their people for
years to come. So far as there
being any danger or need of &C
centuated foreign competition, it
is likely that the conditions or
the next few years will greatly
facilitate the marketing OF
American manufacturers ABROAD
Least of all should we depart
from the policy adopted in the
tariff act Of 1913, of permitting
the free entry into the United
States of the raw materials,
needed to supplement and en-
rich our own abundant supplies.
Tariff Needs Attention.
Nevertheless, there are parts
of our tariff system which need
prompt attention. The expert
enceS of the war have made it
plain that in some instances too
great reliance on foreign sup
ply is dangerous, and that in de-
termining certain parts of our
tariff policy, domestic consider
atoms must be>born in mind,
which are political as we'll as
economic. Among the industries
TO which special consideration
should be given is that of the
manufacture of dye stuffs and
related chemicals. Our complete
dependence upon German sup
plies before. the war made the
interruption of trade a cause or
exceptional economic disturb
ance. The close relation be-
tween the manufacture of dye
stuffs on the one hand and the
explosives and poisonous. gases
on the other, moreover, has
given the industry an exception
al significance and value. AL
though the United States will
gladly and unhesitatingly Join
in the program of international
disarmament, it will neverthe-
less be a policy of obvious prud
ence to make certain of the sue
cessful maintenance of many
strong and well equipped chem
ical plants. The German chem
ical industry, with which we
will be brought into competi-
ton. was and may well be
again, thoroughly knit mon
opoly capable of exercising a
competition of a peculiarly in
sidious and dangerous kind.
FaVOrs Means of Retaliation.
The United States should.
moreover, have the means of