Gilpin observer., 1919-12-04
WILSON MESSAGE
READ TO OCONGRESS
MAKES MANY IMPORTANT REC
CONCENTRATIONS TO
CONGRESS.
WILSON WARNS REDS
FINANCIAL SYSTEM MUST BE
CHANGED, SAYS THE
PRESIDENT.
Western Newspaper Union New. Service,

The Presidents message to Congress
Tuesday follows:
To the Senate and House Of Repre-
sentatives:
/ sincerely regret that I cannot be
present at the opening of this session
of the Congress. l am thus prevented
from presenting in as direct a way as
I could wish the many questions that
are pressing for solution at this time.
Happily, l 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 earnestly second
In the matter of the railroads and
the readjustment of their affairs grow
ing out of federal control, shall take
the liberty at later day of address
ing you.
Urges National Budget.
hope that Congress will bring to a
conclusion at this session legislation
looking to the establishment of a 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. I believe the burden of prepar-
ing the budget must, in the nature of
the case, if 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 a single committee of each house
Of Congress and no single approprie-
ton should be 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
mittee 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 consid-
GRAFTON for this or any subsequent ad-
ministration and authorized and EN-
powered to examine into and make re-
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.
l trust that the Congress will give
its Immediate consideration to the
problem of future taxation. Simpli-
fication of the income and profits
taxes has become an immediate neces-
sable service during the war, They
must, however, be simplified, not only
10 save the taxpayer inconvenience
and expense, but in order that his liza
bility may be made certain and def
mite.
Questions of Tax in Peace Time.
With reference to the details of the
l.. . IA.
treasury and the commissioner of in
ternal revenue will lay before you for
your consideration certain amend.
ments necessary or desirable in con
nectlon with the administration OF the
aw-recommendation which have my
approval and support
1t is of the utmost Importance that
In dealing with this matter the pres
ent law should not be disturbed sc
far as regards taxes for the calendar
year 1920 payable In the calendar
year 1921.
The Congress might well consider
whether the higher rates of income
and profits taxes can in peace times
be effectively productive of revenue
and whether they may not, ON the con
trary, be destructive of business ac
tivity and productive of waste and in
efficiency
There Is a point at which in peace
times high rates OF income and prof
Its taxes discourage energy, remov,
the incentive to new enterprise. EN-
courage extravagant expenditures an,
produce industrial stagnation with
consequent unemployment and othe
attendant evils.
Americas Position.
The problem is not an easy one. !
fundamental change has taken plac
with reference to the position of Amer
ica In the worlds affairs. The preju
dice and passions engcndered by dec
pdes of controversy between tw'