The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-12-02

FOllOWlnS is a pdIlld1 leAI VI oSA-
dent Wilson's message to congress to-
day.
TO The senate and house Of repres-
entatives:
| 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
| could wish the many questions that
are pressing for solution at this time.
! Happily, have had the advantage of
the advice Of heads of the several
executive departments who have kept
in close touch with affairs in their de-
tail and whose thoughtful recommen-
cations I earnestly second.
In the matter Of the railroads and
the readjustment Of their affairs.
growing out Of federal control, l shall
take the liberty at later day OF ad-
dressing you.
l hope that congress will bring TO
conclusion at this session legislation
Hooking to the establishment Of budg-
vt system. That there should be one
single 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 pre-
| pairing the budget must. in the nature
OF the case, if the work is to be prop
erly done and responsibility concen-
trated instead of divided. rest upon
the executive. The budget so pre-
pared should be submitted to and APP
proved or amended by a single COM
/ 81 nP nd
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 congress
charged with the budget legislation.
"Another and not less Important
aspect of the problem is the ascer-
| tainment Of the economy and efficien-
cy with which the moneys appropriate
ed are expended. Under existing law
the only audit is for the purpose of
ascertaining whether expenditures
/ have been lawfully made within the
appropriations. No cle is authorized
or equipped to ascertain whether the
money has been spent wisely, econ
omica!ly and effectively. The audit
ors should be highly trained officials
with permanent tenure in the treas
ury depa rtment free of obligations to
| or motives Of consideratl for this
or any subsequent administration, and
authorized and empowered to examine
into and make report upon the meth
DDS employed and the results obtained
by the executive departments of the
government. Their reports should be
made to the congress and to the sec
! rotary Of the treasury.
| 81 truSt that congress will give its
! immediate consideration to the prom
! lem of future taxation. SimplificatiOn
| OF the income and profits taxes has
/ become an immediate necessity These
taxes performed indispensable SER
! vices during the war. They must,
however, be simplified, not only to
save the taxpayer inconvenience and
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 treas
ury and commissioner of internal rev.
enue will lay before you for your con-
,sideration certain amendments neces-
sary or desirable in connection with
the administration of law-recom-
mendations which have my approval
and support. 1t is of the utmost i'm
portance that in dealing with this
disturbed so far as regards taxes for
the calendar year 1920, payable in the
calendar year 1921. TIE congress
might well consider whether the high
, Ell rates of income and profits taxes
can in peace times be effectively pro-
ductlve Of revenue, and whether they
may not on the contrary, be destruc-
tive cf business activity and produc-
tive of waste and inefficiency. There
is a point at which in peace times
high rates of income and profits taxes
discourage energy, remove the incen-
tive to new enterprises, encourag ex-
travagant expenditures and produce in
dustrial stagnation with consequent
unemployment and other attendant
evils.
The problem is not an easy one.
a fundamental change has taken place
with reference to the position Of
America in the worlds affairs. The
prejudice and passions engendered by
decades of controversy between two
schools of political and economic
thought-lhe one believers in protec-
ton of American industries, the other
believer in tariff for revenue only
must be subordinated to the single
consideration of the public interest in
the light of utterly changed cOndi-
tions. Before the war America was
heavily the debtor of the rest of the
world and the interest payments she
had to make to foreign countries on
American securities held abroad, the
expenditures of American travellers
abroad, and the ocean freight charges
she had TO pay to others, about bal
anced the value Of her pre-war favor
able balance Of trade. During the war
Americas exports have been greatly
stimulated, and increased prices have
increased their value. On the other
hand, she has purchased a large pro-
portion of the American securities
previously held abroad has loaned
some 100000, 900 to foreign govern
ments, and has built her own ships.
Our favorable balance Of trade has
ircroa sod Ell