The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-12-04
NATIONS TAXES
MUST REMAIN TO
MEET ALL NEEDS
Secretary of Treasury Glass
Makes Annual Report On
Expenditures
FOUR BILLION DEFICIT
Urges New Laws to Get Tax
Dodgers Evading Pay
ments On Incomes

Washington, December No an
preciable reduction in taxes tor the
next fiscal year is to be thought Of,
Secretary Glass declared in his an
nual report sent yesterday to Congress-
Government receipts must be kept at
their present figure, he said, in order
to bring government borrowing to an
end.
Facing expenditures estimated at
$500, ,486,359 for the year ending
June 80, 1920, and $4,473,696,35S for
the year ending June 30 1921, the
government must enforce rigid econ
omy, Mir Glass declared. He placed
the deficit for the current year at $3-
905 100000 ard for the year ending
June 80, 1921, 1T approximately $2,-
0O5 100000.
On this basis, MIR. Glass urged Con-
gress to deny every, appropriation
for expenditure in new fields' He
said the same policy should obtain un-
til the government had it's sinking
fund we'll under way and repayment
of the war debt satisfactorily be-
gun"
HIGH COST OF GOVERNMENT +
Mr.. Glass charged that excessive
government expenditures were the
most vital factors" in increasing the
cost. of living and argued that it was
urgently necessary to keep down pub
lie expenses for rhis reason as well
as because Of the drain on the tax
payers.
The present revenue laws need re-
vising to meet new conditions, he
said He referred particularly to the
excess profits tax laws which he de-
scribed as being Objectionable even
as a wartime expedienr.' 1t would be
still more Objectionable in peacetime,
he added, LESS harmful forms OF
deriving funds for the government
should be employed, thee secretary
said, adding that the excess profits tax
had been responsible for much OF the
increase in living costs because it had
been passed on to the consumer.
1T encourages wasteful expend!-
lures, puts premium on overcapital-
ization and Q penalty on brains" the
secretary continued 1T discOurages
new ventures and new enterprises
and establishes old ventures in their
monopolies. In many instances, it
acts as consumption tax, is added
to the cost of production upon which
profits are figured, determining pric-
es It has been, and will, so long as
it remains on the statute books, con-
tlnue to be b material factor in the
increased cost OF living"
Would Get Tax Dodgers
In this connection Mr. Glass also
urged redrafting of the revenue laws
to prevent the evasion Of federal taxes
through this investment Of wealth in
the obligations of states and munich
palities. He said laws should be en-
acted which would compel the report
ing Of SUCH incomes. although they
are wholly tax exempt, and that that
sum with other income of an indi-
vidual should be computed as the
basis for assessing federal taxes on the
amount derived form taxable sources
Relations between conditions in
Europe and those in the United States
were discussed also by Mr.. Glass
He said that, undoubtedly, there was
a very great need in Europe for fin
ancial assistance, but that the sit
uation had been much exaggerated
"We must all feel deep sympathy
for Europe today he said. "but we
must not allow our sympathy to warp
cur Judgment and, by exaggeratins
European financial needs, make them
more difficult to fill. * The
problem of financing Europe belongs
largely to the exporter because indus
tries cannot be reopened without raw
stocks. Government financial assist
ance in the past and talk OF future
government or banking aid to finance
exports have apparently led our IN
dustrial concerns TO the erroneous ex
pectation that their war profits based
largely on exports, will continue in
definitely. without any risk on thell
part. To them will fall the profits Of
exports and upon them will fall the
consequences Of failure to make the
exports
TO RESTORE PRIVATE CONTROL
The treasury Will continue its po
icy, in effect since the armistice, tt
restore private initiative and remove
governmental control and interfer
ence with respect to the nations for
eign trade, Mr.. Glass said. Only thru
this means, he argued, could {
healthy economic life be gained" HI
added that removal Of any influence
by the government should provide the
incentive for American commerce t
20 into the world markets and estab
\ lish itself. Ratification Of the peace
treaty will measurably stimulate ex
port trades, Mr. Glass declared, be
cause operation of the pact would
eliminate numerous political risks ant
provide surer investment basis.
MANITOBA TO HAVE
LIQUOR REFERENDUM