The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-05
a Bankrupt Treasury Unless the
New Congress Saves 1t.

NcW NOhgTebS saves H.
Representative Coop, who will be
Chairman of the House Appropria-
lions Committee in the new Congress,
has no Authorizations about the finan-
cial burdens ahead of this Govern
ment, and he doesn't pretend to have
any. Neither he nor any other man
can tell now to what figures national
bills will bulk next year, because the
maximum will depend on the extent
to which the United States Govern
ment stops spending money by the
billions of dollars.
But the sure minimum-the mini
mum because of the contracts and
engagements already entered into--is
a shuddering spectacle for American
taxpayers to contemplate for the fu-
ture while they are making their
heavy bond and tax payments in the
present.
Because Of the billions Of dollars
that must 60 out of the Treasury into
ship construction and operation, into
railroad deficiencies, into wheat guar
antees, into final war bill settlements,
into insurance, pension and other
funds for soldiers and sailors-be-
cause Of those unavoidable payments
and the ordinary expenditures Of
government there will be, as late as
in 1921, bills to pay not lower than
four billions Of dollars in a year. and
IL the spenders do not watch their
step as high as five billions of dol
lars in year.
And that will be in peace. It will
be more than two years after the end
Of the war!
But unless It continues indefinite
bond issues how is the Treasury 60
ing to raise any such sums by the
scheme of taxation now in effect?
The Kitchin revenue raisers never de-
vised, never tried to devise, a scien-
tifc, sound, or an effective tax
measure. The Kitchin revenue rails
! ers simply adopted the policy and pur-
sued the practice of soaking to the
limit any interest or any individual
that had anything. For the time be-
ing such sweating of revenues out of
a relatively few interests and a rela-
lively small number of individuals got
money for the Treasury and ravished
the soul of KITcHIN.
But how about to-day? The steel in
dustry which paid into the Treasury
hundreds of millions of dollars IN
taxes isn't making Its former profits
TO be taxed. The copper industry,
which also turned over huge treasure
10 the Government, isn't making the
profits to be taxed. The great textile
industry isn't. Even the great coal
industry isn't. Dozens and dozens Of
industries, thousands and thousands
of corporations and businesses, of
partners and individuals that paid CO.
lossal taxes into the Treasury for ,he
calendar year of 1917 and that are
now paying them into the Treasury
for the calendar year OF 1918, are
dried up sources of Treasury reve-
nues to-day.
Ahead OF US are billions of dollars
of bills to be paid. But hundreds OF
millions of dollars Of tax revenues
that were in existence only the other
day are now on the missing Lists.
If the United States Government is
counting upon paying the bills for the
fiscal year Of 1919, not to speak OF
1920, with the methods Of taxation It
employed during the maniacal reye-
nue. wringing of the Kitchins, why the
United States Treasury might Just as
well acknowledge this morning its
bankruptcy Of next year as to wait
until the expected revenues of next
year do not come in.
When the new Congress meets, in
the possession of It's economic facul-
ties and equipped with intellectual ca
pacity, it will have many, many things
TO undo that were done by its prede-
cessor. 1t will have many. many
new things to do that were left un-
done by its predecessor. But 1t will
have nothing more important to do
than to get to work Immediately on a
sane and sound revenue programme
that will steer the United States
(. Treasury off the rocks for which II is
now heading as surely as the Lord
made little apples.