The state herald., 1919-12-12
WILSON MESSAGE
READ TOCONGRESS
MAKES MANY IMPORTANT REC.
CONCENTRATIONS TO
CONGRESS.
WILSON WARNS REDS
FINANCIAL SYSTEM MUST BE
CHANGED, SAYS THE
PRESIDENT.


Western Newspaper Union News Service.
The Presidents message to Congress
Tuesday follows:
To the Senate and House of Repre-.
sentatives:
I sincerely regret that cannot be
present at the opening of this session
of the Congress. am thus prevented
from presenting in as direct way as
I 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 de-
tail and whose thoughtful recommend,
ations l earnestly second.
In the matter Of the railroads and
the readjustment of their affairs grow
ing out of federal control, I shall take
the liberty at n later day of address
ing You.
Urges National Budget.
1 hope that Congress will bring to n
conclusion at this session legislation
looking to the establishment Of bud
get system. That there should be one
singel authority responsible for the
making OF all appropriations and that
appropriations should be made not in
dependently of each other, but with
reference to one single comprehensive
plan Of expenditure properly related
to the nations income, there can be no
doubt. believe the burden Of prepar-
ing the budget must, In the nature OF
the case. II the work is to be properly
done and responsibility concentrated
instead Of divided, rest upon the execu-
utive.
The budget so prepared should be
submitted to and approved or amend
ed by n single committee Of each house
OF Congress and no single appropr'e.
ton should he made by the Congress,
except such as may have been includ-
ed in the budgst prepared by the ex-
ecutive of added by the particular com
mlttee Of Congress charged with the
budget legislation.
Permanent Tenure Of office.
Another and not less important
aspect Of the problem is the ascertain
ment Of the economy and efficiency
with which the moneys appropriated
are expended. Under existing law
the only audit Is for the purpose OF
ascertaining whether expenditures
have been lawfully made within the
appropriations. No one is authorized
or equipped to ascertain whether the
money has been spent wisely, econom-
ically and effectively.
The auditors should be highly
trained officials with permanent ten
ure in the Treasury Department. free
OF obligations to or motives OF consld-
GRAFTON for this or any subsequent nd.
minlstration and authorized and em-
powered to examine into and make re-
port upon the methods employed and
the results obtained by the executive
departments OF the government. Their
reports should be made to the Con.
gress and to the secretary OF the
treasury.
/ trust that the Congress will give
Its immediate consideration TO the
problem Of future taxation. Simpli.
flcatlon OF the income and profits
taxes has become an immediate neces-
sity. These taxes performed indispen-
sable service during the war. They
to save the taxpayer Inconvenience
and expense, but In order that his lin.
bility may be made certain and def.
mite.
Questions Of Tax In Peace Time.
With reference to the details OF the
revenue law. the secretary OF the
treasury md the commissioner OF In.
ternul revenue will lay before you for
your consideration certain amend.
ments necessary or desirable In con,
nection with the administration OF the
law-rccommendations 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 50
far ns regards taxes for the calendar
year 1920, payable In the cnlendai
year 1921.
The Congress might well consider
whether the higher rates Of incom,
md profits taxes can In pence timer
be effectively productive OF revenue
and whether they may not. on the con
rary. be destructive OF business nc
tivity and productive OF wnste and In
efficiency.
There In n point ut which In peace
times high rates of income and prof
Its ,nxcs discourage energy. rcmov'
the Incentive tn new enterprise. en-
Ia