The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1919-12-02

OF the congress- / am thus prevented
from presenting in as direct a way AZ
I could wish the many questions that
II 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 thoughtfui recon-
mendaiions ] earnestly second.
In the matter OF the railroads and
the readJustment Of Their. anairs
growing out OF federal control, l shall
take the liberty at later day Of ad-
dressing you.
URGES ESTABLISHMENT
OF BUDGET SYSTEM.
Il hope that congress will bring 20
a conclusion az this session legislation
/ looking TO the establishment of a
budget system. That others should
he one single authority responsible
for the making Of all appropriations
and that appropriations should be
..adc not independently Of each other,
but with reference to one single COM
prehensive plan Of expenditure prop
eriy related TO the nations income,
there can be no doubt believe the
budget system. That there should
Ia the nature OF the case. n the york
" to be properly done and responsi-
bliity concentrated instead Of dieided.
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 single appropriation should be
made by the congress, except such as
may have been included In the budget
prepared by the executive or added
| by the particular committee OF con-
gress charged with the budget legisla-
tion.
'Another and not lees important as
~ h. Nrnl1assa a. hs N In.
ment OF the economy and efficiency
with which the moneys appropriated
are expended. Under existing laN the
only audit is for the purpose Of ascvr-
tanning whether expenditures have
been lawfully made within the appro-
priations. No one Is authorized or
equipped to ascertain whether the
money has been spent wisely, eco
nomically and effectively. The audi
tors should BE- highly trained officials
with permanent tenure In the treas
urY department free OF obligations 10
or motives Of consideration fer this or
any subsequent administration anu
authorized and empowered 10 examine
into and make report upna the meth
| ods employed and the results obtained
/ by the executive departments OF the
government Their reports should be
made TO the congress and % the Sec
retary OF the treasury.
SINiPIIFIC ALTON or
/ TAXATION Is ADVISED.
| II trust that the congress win give
It's Immediate consideration 10 the
problem OF future taxation. Simplifi-
! cation Of the income and profits
1 titses has become an immediate nee
essity. These taxes performed indis-
/ pensable service during the war. They
must, however. be simplified. not only
| to save the taN payer Inconvenience
ana expense. but In order that his
liability may be made certain and
definite.
with reference to the details OF
the revenue law, the secretary Of the
treasury and the commissioner Of In
| tcrnal revenue will lay before you for
your consideration certain amend
montH necessary or desirable In con-
nection with the administration OF
/ the law-rccom lamentations which
have my approval and support. II Is
Of the utmost Importance that In deal
ing with this matter the present law
should not be disturbed so far as re-
CARDS taxes fo- the calendar year
| 1920, payable In the calendar year
I 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
revenue and whether they may not.
on the contrary be destructive OF
business activity and productive OF
waste and inenlcioncy. There Is a
point at which In peace times high
rates OF income and profits .aNes dis
courage energy. remove the Incentive
20 new enterprise. encourage eXtraVa-
, CANT expenditures and produce indus
trial stagnation with consequent un-
az 0ioyment and other attenaaIi
hrilA
ne problem Is not an easy one.
= .IndWncn;al change mas taken
place with reference TO the position
of America In the worlds affairs. The
, prejudice ana passions enEondered by
decades Of controversy uetwcon two
schools uf political and economic
thought-the one believers In protec-
ton ~ American Industries. the other
believers In tariff FOR revenue only
must be subordinatod 10 the single
consideration OF the public interest IN
the light Of utterly changed condi-
tons, Before the war America was
ncaNily the debtor OF the rest OF the
world ana the Interest payments she
had Co make 10 foreign countries on
American sccu- ties held abroad. thu
/ expenditures of American travellers
abroad, and the ocean freight chargei
she had 90 pay to others, about bal.
, anced the value Of her pre-war ia
4 yorahle balance OF trade.
"Durlng tho war Americas cNporu
have been greatly stimulated, and in.
. ateuacu pr.ces nave increased theil
value. on the other hand she hai
q purchased large proportion Of m!
- American securities previously held
% abroad. has loaned some Sa,0OO,0O0.'
; nen to foreign vernments, and hai
, built her own ships. our favorable
o. balance OF trade has thus peon great
!. is increased and Europe has been de
4 privei of the means or meeting {.
4 heretofore existing,
AGAINST SETTING UP
4 ANY TARIFF RAitlttERS.
4 Europe can only have three way
I uf meeting the favorable balance %
c trade ll peace timesi hy Imports int
/, ,hls country Of E.ld or of goods, o
: hy establishing now credits. Europl
Is In NO position al the present TIM
z TO ship gold t0 w. nor could we con
y template large further Imports o
> gold into this country without con
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