The Idaho Springs siftings-news., 1919-12-05
WILSON MESSAGE
READ TO CONGRESS
rAKEs MANY IMPORTANT REC
CONCENTRATIONS TO
CONGRESS.
WILSON WARNS REDS
FINANCIAL SYSTEM MUST BE
CHANGED, SAYS THE
PRESIDENT.
western Ne~~pa per Union New. Service

western NtWstdptr mon NEWS SrrNicr
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. am thus prevented
from presenting in as direct a way as
] 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
s,tions earnestly second.
In the matter of the railroads and
fhe REIMBURSEMENT of their affairs grow
ing out of federal control, l shall take
the liberty at later day of address
Ing you.
Urges National Budget
I hope that Congress will bring to Il
conclusion at this session legislation
looking to the establishment of bud
ger SySttHi. llul tIltit Dt oiit
singel authority responsible for the
making of all appropriations and that
,tppropriations should he made not in
tependentiy of each other, but with
reference to one single comprehensive
plan OF expenditure properly related
to the nations income. there can he no
doubt I believe the burden of prepar-
~ J.,.. tn ttypl nf
the case, if the work is to be properly
done and responsibility concentrated
instead of divided. rest upon the execu-
Htive.
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'H-
tion should be made by the Congress
except such as may have been includ
ed in the budgst prepared by the eN-
ecntive of added by the particular com
mitfee 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
uli,roprlatiOns. No one is authorized
or equipped to ascertain whether the
money has been spent wisely, econom-
icaliy 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 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-
ficatiOn of the income and profits
taxes has become an immediate neces-
sity. These taxes performed indispen-
sable service during the war. They
must, however, be simplified, not only
to 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
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 OF desirable in con
nection with the administration of the
Iaw-recommendatio 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
wear 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, remove
the incentive to new enterprise, en-
courage extravagant expenditures ant
produce Industrial stagnation will
consequent unemployment and othei
attendant evils.
Americas Position.
The problem is not an easy one. a
fundamental change has taken place
with reference to the position of Amer
ica in the worlds affairs. The preju
dice and passions engendered by dec
ades of controversy between two
schools of political and economic