New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-12-12
MAKES MANY IMPORTANT REC
COMBINATIONS TO
CONGRESS.
WILSON WARNS REDS
FINANCIAL SYSTEM MUST BE
CHANGED, SAYS THE
PRESIDENT.
Western Newspaper Union News Service.

newspaper thioh
The Presidents message to Congress
Tuesday follows:
To the Senate and House of Repre-
s~entatiyes:
/ sincerely regret that l cannot be
present at the opening of this session
OF the Congress. / am thus prevented
from presenting in as direct a way as
l 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
atoms / earnestly second.
In the matter of the railrCSds and
the REIMBURSEMENT of their affairs grow
the liberty at a later day of address
ing you.
Urges National Budget.
l 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
d~ependently 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, IL 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 %appropr'n-
ton should be made by the Congress,
except such as may have been includ-
ed in the budgst prepared by the eN-
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, n
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 adj
ministration and authorized and EN-
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.
1 trust that the Congress will give
its immediate consideration to the
problem Of future taxation. Simpli-
ficatiOn Of the income and profits
axe has become al immediate ncces-
slty. These taxes performed indispen-
sable service during the war. They
must, however, be simplified, not only
to W. 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
revenue law, the secretary Of the
treasury and the commissioner OF in
ternal revenue will lay before you for
your consideration certain amend
ments necessary or desirable In con-
nection with the administration OF the
INSTRUMENTATION 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 so
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 al in peace times
be effectively productive of revenue
and whether they may not, on the %
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, remove
the incentive TO new enterprise, en-
courage extravagant expenditures and
produce Industrial stagnation with
consequent unemployment and other
attendant evils.
Americas Position.
The problem Is not an easy one. A
fundamental change has taken place
with reference. 10 the position of Amer
lea in the worlds affairs. The preju-
dice and passions engendered by dec
AIDES OF controversy between two
of political and economic
thought-the one believes in protec-
ton of American industries, the other
believes in tariff for ven only
must be subordinated to the single
consideration Of the public interest in
the light of utterly changed condi-
Before the al America was heavily
the debtor of the rest Of the world.
and the interest payments she had to
make to foreign countries on Ameri-
securities held abroad. the expen-
ditures of the American travellers
and the ocean freight charges
had to pay to others, about bal