Evening journal., 1919-05-20

yards, new ana old, VIII De so
opened 10 the use Of tho world that
they win prove immensely service
able 20 every maritime people In
restoring, much more rapidly than
otherwise would have been posi-
bic the tonnage wantonly destroyed
In the war. have only 10 suggest
that there are many points at which
we can facilitate American enter
prise in foreign trade by opportune
legislation and make II easy for
American merchants 10 so where
they will be welcomed as friends
rather than as dreaded antagonists.
America has a great and honorable
service 90 perform in bringing the
commercial and industrial under
taking back 20 their old scope and
swing again, and putting a solid
structure OF credit under them. All
our legislation should be friendly to
such plans and purposes.
And credit and enterprise alike
Will be quickened by timely and
helpful legislation with regard 10
taxation. I hope that the Congress
VIII find IL possible 10 undertake an
early reconsideration Of Federal
taxes, in order TO make our system
Of taxation more simple and easy OF
administration and the taxes them
selves as little burdensome as they
can be made and yet suffice 20 sup
port the government and meet all
its obligations. The figures 10 which
those obligations have arisen are
very great indeed. but they are not
so great as 20 make IL difficult for
the nation 10 meet them, perhaps,
I'm a single generation, by taxes
which will neither crush nor dis
courage. These are not 80 great
as they seem, nor so great as the
immense sums we have had 10 Dor
row, added 10 the immense sums
we have had TO raise by taxation,
would seem TO indicate. For a large
proportion Of those sums we raised
in order that they might be loaned
TO the governments with which we
were associated in tho war and those
loans will constitute assets not LA
bilities and Will not have 10 be taken
care OF by our tax payers.
The main thing we shall have ~
care for is that our taxation shall
rest as lightly as possible on the
productive sources OF the country
and that IL shall DO constant in its
revenue yielding powers. We have
the main sOuroo from which IL
must be drawn? take II for grant
ed that It's msinstays Will hence
fourth be the income tax, the ex-
ces profit tax and the estate tax.
All these can so be adjusted 60 yield
constant and adequate returns and
yet not constitute a too grlevOus
burden on the tax payer. 4 revision
OF the income tax has already been
provided for by the act Of 1918, but
] think you viii find that further
changes can be made 10 advantage
both in the rates OF the tax and in
the method OF its collection. The
excess profits tax need not long no
maintained at the rates which were
Necessary while the enormous cx-
penses OF the war had 90 be borne;
but II should be made the basis OF a
permanent system which will reach
undue profits without discouraging
the enterprise and activity OF our
business. The tax on inheritances,
ought, no doubt, 10 be reconsidered
in its relation 20 the fiscal systems
Of the several States, but Il oer-
tainly ought 10 remain a permanent
part Of the fiscal system OF the Fed
eral also.
Many OF the minor taxes pro-
vided for in the revenue legisla-
ton Of 1917 and 1918, though no
doubt made necessary by the press
ing necessities OF the war time,
can hardly ind sufficient iustflcs-
ton under the easier circumstances
OF peace and can now happily be
got rid or Among these. I hope
you will agree are the excuses upon
various manufactures and The taxes
upon retail sales. They arc un-
equal. Their collection Is difficult
and expensive. Those which arc
levied upon articles sold at retail
are largely evaded by the resdiust-
ment OF retail prices. on the other
hand ! should assume that il Is
eXpedient 10 maintain A consid-
cradle range OF Indirect taxes, and
the fact that alcoholic liquors will
presently no longer afford source
Of revenue by taxation makes it
the more necessary that the Geld
should he carefully restudied in
order that equivalent sources OF
revenue may he found which 10
will be legitimate and not burden
some TO draw upon. But you have
at hand in the Treasury Depart
ment many experts who can advise
you upon matters much better than
] can. can only suggest the lines
Of a permanent and workable sys-
tenn. and the placing OF the taxes
where they will least hamper tho
life Of the people.
There. is fortunately. no oOca-
sion for undertaking In the immed-
late future any general revision Of
our system OF import duties. No
Danger Of foreign competition now
threatens us. Our country has
emerged from the war less dis
turbed and less weakened than any
OF the European countries which
are our competitors In manufac-
ture. Their industrial establish
ments have been subjected 10
greater strain than ours. their la
bour force TO a more serious disor-
gsnizstion and this is clearly not
the time 10 seek an organized ad-
vantage. The work OF mere recon
struction will. am afraid, tax the
capacity and the resources OF their
people for years 20 come. SO far
from there being any danger or
need OF accumulated foreign COM
petition. 10 is likely that the condl-
tons OF the next few years viii
greatly facilitate the market OF
American manufactures abroad.