Evening journal., 1919-12-02
INDUSTRIl IlLPEAtH
.iSCURE FOR WORRY
ContInued dom Flrst p

Information today. He VIII also deal
,ater with the railroaa question hf in
formed the legislators
n Much OF the message was devoted 10
discussion OF the labor problem To
solve ii.-the President said Congress
must now help in the difficult TASK oi
iindina a method that will bring about
a aenuine characterization Of INDUSTRY"
No better means Of doing thif can be
applying In legislation the principles set
found, the President declared, Than by
up i'm the labor section OF ne League
Of Nations covenant TO 90 back TO old
standards Of labor and wages Is impos-
slble he said. Age long dntagonisms
between employer and employe must be
ended. he declared, before real world
stability can be accomplished.
The President warned against anti
strike legi lat0n.
The right Of individuals % strike
is invl0late." he declared, "and ought
not 90 be intcrfered with by any pro-
cess Of government. But, he added
that the government has the predoml-
uant right 90 pr tect an the people
against the challenging aggression or
any single class.
Analysis OF the wOrke.s' complaint,
the President told Congress, rhows 10
Is based upon justice. The employers,
100. he declared. have right 20 an
adequate return and ihe government
he warned. must never pay the
forces against each other.
Blame for unrest in the country was
placed partly upon the senate Tor the
failu-e to ratify the peace treaty.
The text of the message follows. {.
ITO the senate and House OF Repre-
sentatiyes
Il sincerely regret that ! 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. Hap
plly. l have had the advantage Of the
adyices OF the heads OF the several
executive departments who have kept
In close touch with affairs in their de-
tail and whose thoughtful rccommen-
dations / earnestly second.
In tbe matter OF the railroads and
the reimbursement Of their affairs grow
ing out OF federal control ! shall. take
he liberty at a later dste Of addressing
you.
81 hone that Congress VIII bring 20
conclusion at this ssion legislation
looking 20 the establishment OF a Duu-
get system. That there should De only
single authority responsible FOR the
making Of all appropriations and that
appropriations should be made not in
dependenuy OF each other but win
reference 10 one single comprehensive
plan OF expenditure properly related 10
the nations income, there can DE no
doubt I believe The burden Of prepar-
ing the budget must, in the nature or
the case II the work Is 10 be properly
done and responsibility concentrated,
be made by Congress instead or divided
with the executive. The budget so pro
pared should be submitted and approx
ed or amended by a single committee OF
each House of Congress and 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
budget legislation.
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 oscer-
tanning whether expenditures have
been lawfully made within the apprO-
priati0ns. No one is authorized 90
p0uipped 90 ascertain whether the
money has been spent wisely. ec0nom-
irally and effectively. The auditors
should be highly trained officials with
permanent tenure in the Treasury De-
-N.F 20
tives of consideration for this or any
subsequent administration and author
lied and empowered go examine into
and make report upon the methods en-
ployed and the results obtained by the
executive departments. Their reports
should be made TO the Congress and 70
the Secretary OF the Treasury.
81 trust that Congress will give It's
consideration TO the question Of future
taxation. Simplincati0n Of the income
and profits taxes has become an i'm.
mediate necessity. These taxes per-
formed indispensable service during
the war. They must, however. be sim
pliled, not only 10 save the taxpayer
Inconvenience and expense but In ord g
that his liability may be made certain
and definite
" lil lfltlNlIH To lif NFNAtA0 NA NlAa
revenue law. the Secretary Of the
Treasury and the Commissioner Of In
ternsl Revenue VIII lay before you Tor
your consideration certain amendments
necessary or desirable in connectl0n
with IN, administration OF the law
recommendations which have my ap.
proval and support
Suggests New Profits Tax.
1T is OF the utmost importance tha
dealing with thi, matter the prasen
" should not be disturbed so far "a
CARDS taxes for On, caloni1- wa,
%. payable in the caleadar year 1924
ne Congress might well conside
whether the higher rates Of income an,
profits taxes can in peace times be- ef
fectively productive OF -evcnus an,
whether they may not. on ihe contrary
be destructive Of business activity an
productive OF waste and ineflciency
There Is a point at which IN peac,
times high rates OF income md prOflt
taxes discourage energy, remove the IN
centive 10 new enterprise. encourage
extravagant expenditures and produc
Industrial stagnat'On with consequen
unemployment and other attendan
evils
"The problem is not an easy one.
fundamental change has taken plact
with reference TO the pos s'tion 10 IN,
American in the worlds affairs. Tn,
prejudice and passions engendered b,
decades Of controversy between the tw
political and economic thOught-the
one believers in protection Of Amerl