Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-12-04

follows:
To the Senate and House Representa-
tives:
! sincerely regret that cannot be
present at the opening of this session
of the Congress. l am thus prevented
from presenting in as direct way as |
could wish the many questions that are
pressing for solution at this time. Happily,
I have the advantage of the advice of the
heads OF the several executive depart
ments who have kept in close touch with
affairs in their detail and whose Thought
full recommendations ] earnest second.
In the matter of the railroad and the
readjustment of their affairs growing
out of federal control ] shall take the
liberty at a later day of addressing you.
| hope that Congress will bring TO a
conclusion at this session legislation look
ing to the establishment of budget
system. That there should be one single
authority responsible for The making of
all appropriations and that appropriations
should be made not independently of each
other, but with reference TO one single
comprehensive plan OF expenditure prop
erly related to the nations income, there
can he no doubt ] believe the burden of
preparing the budget must, in the nature
Of the caee, if the work is to be properly
done and responsibility concentrated in
stead of divided. rest upon the executive.
The budget so prepared should he sub
mitted TO an approved or amended by a
single committee Of each house of Con-
gress 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-
cna ,,-ifl. b,,l,
WOULD WATCH EXPENDITURES
Another and not less important as =
pect 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 ascer-
tanning whether expenditures have been
lawfully made within the appropria-
tons No one is authorized or equipped
to ascertain whether the money has
been spent wisely, economically and
effectively.
The auditors should be highly train
ed officials with permanent tenure in
the treasury departne emit. free of obliga-
tions to- or motives of consideration
for this or any subsequent adnlinistra-
ton and authorized and empowered to
examine into and make report upon the
methods employed and the results OBJ
tanned by the executive departments of
the government. Their reports should
be made to the congress and to the
secretary of the treasury.
MUST SIMPLIFY TAXATION
trust that. the congress will give
its Immediate consideration to the
problem of future taxation. Simplifica-
ton of the income and profits taxes
has become All immediate necessity
These taxes performed indispensable
service during the war. They must,
however. be simDlfied, not only to save
the tax payer inconvenience and eX
pense. but in order that his liability
may be made certain ai.d definite.
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 amendments
necessary or desirable in connection
with the administration of the law
recommendations which have my ap-
prevail and support. 1t is of the utmost
Importance that in dealing with this
matter the present law should not be
disturbed as far as regards taxes for
the calendar year 1920, payable in the
we'll consider whether the higher rates
of income and profit taxes can in peace
times be effectively productive of
revenue and whether they may not. on
tho contrary be destructive of business
activity and productive of waspe and
inefficiency There is point at which
in peace times high rates of income
and profits taxes discourage energy.
remove the incentive to new enterprise,
encourage extravasant expenditures
and produce Industrial stagnation with
consequent unemployment and other
attendant evils.
PROBLEM NOT EASY ONE
The problem is no, an easy one, \
fundamental change has taken place with
reference to the position of America in
the worlds affaDs The prejudices and
passions engendered by decades of con-
troversy between two schools of political
and economic thought-the one believers
in protec ton of American industries, the
other believers in tariff Tor revenue only
must ne subordinatsd TO the single con-
siderat ton of the public interest in the
light of utterly changed conditions. Be
fore 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 Ameri-
can travellers abroad and the ocean
freight chrages she had To pay TO others,
about balanced the value of her pre-war
favorable balance Of trade. Americas
exports have been greatly stimulated and
increased prices have increased their
value. On the other hand she has pur-
chased large proportion of the Ameri-
can securities previously held abroad, has
loaned some s9.0O000O,O00 TO foreign gov
ernments, and has built her own ships.
our favorable balance of trade has thus
becn greatly increased and Europe has
been deprived OF the means Of meeting
it heretofore existing
Europe can have only three ways of
meeting the favora BILE balance of trade
in peace times. by imports into this coun-
try OF go Il or Of goods. or by establishing
new credits. Europe is in no position at
the present time 10 ship gold to us nor
could we contemplate large further i'm
ports OF gold into this country without
concern The time has nearly passed for
international governmental loans and it
will take time to duplicate in this couu-
try a market for foreign securities. Any
thing. therefore. which would tend TO
prevent foreign countries from settling
for our exports by shipments Of goods
into this country could only have the
effect of preventing them from paving
for our exports and therefore of pre-
venting the exports from being made
The productivity of the country greatly
stml by the war must find an out
lo' i.' exports to foreign countries and
any 'oasures taken to prevent imports