New-York tribune., 1919-02-14

public funds by taxation than were
ever raised in one year by any single
nation.
Though the bill may, as some of its
opponents say, work havoc with Amer
lean commerce and business. it cannot
be said that it has been hastily en-
acted, for it is eight months and six
teen days since President Wilson. on
the twenty of last May, urged
Congress to give its immediate CON
sderation" to the passage Of new
revenue law, and to prolong its ses-
sion for that purpose, though "the sum-
n,er is upon us, in which labor and
counsel are twice as arduous and are
constantly apt to be impaired by lassi-
tude and fatigue"
In his address to Congress at that
time. the President declared that if the
burden of taxation were "justly dis
tributed and the sacrifice made com
mon sacrifice, from which none es-
capes who can bear it at all, they will
carry it cheerfully and with sort of
solemn pride
Solemn Pride" Will Be Missing
The burden has now been imposed, but
according to speeches made in the SEN
ate these last few days, it Will be borne
with feelings not akin to Solemn
pride"
The first wrench viii come on March
10, when the returns on income and
excess profits must be made, accom-
panied by payment of one quarter Of
the tax amount. Blanks were mailed
last Friday to local revenue collectors
all over the country, and now they will
be Immediately available for taxpayers.
The chief speech of the day on the
revenue bill was made by Senator Reed
Smoot, a member of the finance COM
mittee and a close student of national
( finances.
eve are about to impose on the
American people, said Senator Smoot,
"the heaviest burden of taxes and at
the highest rates that has ever been
imposed on our people or on the peo-
pie of any other nation in all the his
tory of he world"
This burden of taxes, he said. was
on top of burden of loans that had
been subscribed with willingness and
an eagerness that reflected undying
glory on the American people. Great
as the burden would be, the Senator
did not think that the first year Of tn.
bill, which has been counted on to
yield S6,000,000,0 900, would yield more
than $4,000, 100000 at the outside limit.
and not much more than IS, 900, 600 600
in the second year, instead of $4,000,
100000. The only possibility of reach
ing the last amount in 1920 was the
immediate revival of business, he said.
Expenditures To Be SIS, 1000, 100000
Senator Smoot calculated that the
expenditures for the current fiscal
year would aggregate 100000, 900
and that for the following year they
would not be less than S10,OOO,OOO. 600.
From the declaration of war on April
6, 1917, to December 81, 1918, the
governments expenditures were $26.-
/ 500, 100000. Against this item were
/ Sl6,966 100000 from the four Liberty
loans and S6,040,0O0,OOO from taxes
with $1,000, ,OOO,0 600 more to come from
the approaching Victory loan, making
total Of $28 900, 100000 of income
which would only suffice until June 80
next.
According to Senator Smoot, the re-
lief provisions of the law will prevent
it from reaching $4,000, 600 900 in the
current year.
"The question then is" continued the
Senator, chow shall be raise the needed
money? There is only one way, unless
we amend the law-and do not believe
that we will-and that is to issue more
bonds, for at least s7,0o0,OOO, 1000, or
else convert into money for running ex-
penses the obligations of foreign gov
emments to our government"
The Senator then explained that he
had already prepared a bill for such
conversion, and had it read into the
record.
This bill provides for the conversion
o. the foreign obligations into bonds
of the denomination of $1,000, $500
500 and $50, maturing in from five to
twenty years and bearing interest at
from to per cent These bonds
would be guaranteed by the United
States and would be sold in the open
markets of the world As the loans to
foreign governments aggregate $4,000
100000 Senator Smoot thought tn IT
there would be no difficulty in raising
IN this way $1,000 900 900, which must
otherwise be met by new bond issues
Senator Smoot said that because j,
had been possible to withdraw SIS 600
100000 Of appropriations made before
the armistice the erroneous imnres.
sion had gone abroad that such ar
amount had been turned back into the
Treasury, whereas it merely reduced
future obligations that would have
been met had the war gone on.
The new law as Senator Smoot soes
1T, will be "burdensomc bcvond meas.