The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1919-12-05
WILSON URGES .
BUDGET SYSTEM
President Asks Tax and Tariff
Revision In Annual Message
To Congress.
TREATY VIEWS LATER
Railroad Situation Also to Be Dis
eussed In Future Messase-curbs
On Radical and Mounting
Costs Are Asked.


Following is the full text of Presi-
dent Wilson's message to the Sixty
sixth congress:
l sincerely regret that I 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, 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
detail and whose thoughtful recon-
mendations l earnestly second.
In the matter of the railroads and
the reimbursement of their affairs grow
ing out of federal control, shall take
the liberty at later day of addressing
you.
Budget System Urged.
/ hope that Congress will bring to
a conclusion at this session legislation
looking to the establishment Of a
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 compre-
hensive plan of expenditure properly
related to the nations income, there
can be no doubt. l believe the bur-
den of preparing the budget must, in
the nature of the case, If the work is
to be properly done and responsibility
concentrated instead of dividend, rest
upon the executive. The budget so
prepared should be submitted to and
approved or amended by single COM
| mittee 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 the budget legislation.
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 as
pertaining whether expenditures have
been lawfully made within the ap-
preparations. No one is authorized
or equipped to ascertain whether the
money has been spent wisely, econo-
mically and effectively. The auditors
should be highly trained officials with
permanent tenure in the Treasury de-
partment, free of obligations to, or mo-
| tives Of consideration for this or any
subsequent administration and au-
thorized and empowered to examine
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.
l trust that the Congress will give
immediate consideration to the prob
lem of future taxation. Simplifica-
ton Of the income and profit taxes
has become an immediate necessity.
These taxes performed indispensable
service during the war. They must,
however, be simplified, not only to
save the tax payer inconvenience and
expense, but in order that his liza
bility may be made certain and def
mite.
Income Tax Revision Sought.
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 or desirable in con-
nection with the administration of the
law-recommendatio which have my
| approval and support. 1t is Of the ut
most importance that in dealing with
this matter the present law should not
| for the calendar year 1920, payable
in the calendar year 1921. The Con-
gress might we'll consider whether the
higher rates of income and profit taxes
can in peace times be effectively pro-
ductive of revenue and whether they
may not, on the contrary, be destruc-
tive of business activity and produc-
tive of waste and inefficiency.
There is a point at which in peace
times high rates Of income and profit
taxes discourage energy, remove the
incentive to. new enterprise, encourage
extravagant expenditures and pro-
duce industrial stagnation with con-
sequent unemployment and otker at
tendant evils.
| America Creditor Now.
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 Sc.
curities held abroad, the expenditures
of American travellers abroad and the
ocean freight charges she had to pay
others, about balanced the value OF
her pre-war favorable balance OF
trade. During the war Americas ports
have been greatly stimulated, and in
creased prices have increased their
value. On the other hand, she has
purchased large proportion of the
American securities previously held
abroad, has loaned some 100000,
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Removes Lid On Food Parcels.