The Holly chieftain., 1919-12-04
WILSON MESSAGE
READ TO S0L0NS
Makes Important Recon-
mendatiOnS.
LEGISLATION AGAINST REDS
IS STRONGLY EMPHASIZED
Financial System of the Country
Must Be Changed, Says the Pres
ident-Laws Urged to Promote
Democra tia tion OF Industry.


CONTINUED from 1st Page Of 1st Sec.)
reports should be made to the Con
gress and to the secretary of the
treasury.
1 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 incOnvenieL.e
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
ternaI revenue will lay before you fol
your consideration certain amend
ments necessary or desirable in con
nectiOn with the administration Of the
iaw-recommendati which have my
approval and support.
1t is of the utmost Importance that
in dealing with this matter the pres.
ent law should not he disturbed SO
far as regards taxes for the calendar
year 1920, payable in the calendar
year 1921.
The Congress might well consider
1t nk1c 80 f,,n
and profits taxes can In peace time.
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 and
produce Industrial stagnation with
consequent unemployment and other
attendant evils.
Americas Position.
The problem is not an easy one. A
fundamental change has taken place
with reference TO the position of Amer
lea in the worlds affairs. The preju-
dice and passions engendered by dec
ades of controversy between two
schools Of political and economic
thought-the one believes In pr0tec-
ton CT American Industries, the other
believes In tariff for revenue only
must be subordinated to the single
consideration Of the public interest in
the light of utterly changed condi-
tions.
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 Ameri-
can securities held abroad, the expen-
ditures of the American travellers
abroad and the ocean freight charges
she had to pay to others, about bal
anced the value of her pre-war favor.
nble balance of trade During the
war 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 Amer
lean securities previously held abroad,
has loaned some $9,0OnOOO,OOO to for
eign governments, and has built her
own ships. Our favorable balance OF
trade has thus been greatly increased
and Europe has been deprived of the
means Of meeting 1t heretofore exist.
ing.
To Develop Market.
Europe can have only three ways of
meeting the favorable balance Of trade
In peace times: BY imports into this
country Of gold or Of goods, tr by
establishing new credits. Euro e is
In no position at the present titie to
ship gold to US nor could we co item
plate large further imports Of gol, into
this country without concern.
The time has nearly passed # in
ternational government loans aid 1t
will take time to develop In this coun-
try market for foreign securities
Anything, therefore, which would tend
to prevent foreign countries from set
ding for our exports by shipments Of
goods into this country could only
have the effect of preventing them
rgm paying Tor Rw exports aud