Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-21
SIMPLE TRUTH ABOUT TAXES

1 ic huIu W luu lhdu WIZ, III us
L cussion of national affairs, will not begin
with triumphant assertion that "the war
is over In some ways the war is over.
In other ways the war will go on as a
factor in the life Of this country for quar-
ter of a century. When we have paid the
costs of that great adventure, and not until
then, can we call the incident closed.
Secretary Houston. of the Treasury, saw
the war as a continuing problem when he
addressed the convention of the American
Bankers Association at Washington. The
secretary's view OF the whole question of
taxes was courageous and clear, and his
discourse was refreshingly free from the
reckless promises and the dangerous optim-
ism that are general in the campaign head
quarters of the Democrats and the Repub-
licans alike.
Mr.. Houston was not willing to forget that
wc spent about S3G 900 600 900 in the fight
against Germany and that not q dollar Of
this debt has been paid thus far by the
government Nor was he willing to hide in
medley of pleasant sounds the fact that
Eui one still owes us an additional S0. .000,-
600 600, and that the present state of inter-
nati0i al affairs makes increasing expendi
lures imperativcly necessary to the peace
and safety of the nation.
The national government will not re-
pudiate a penny of its debts. The war
bonds must be redeemed and interest on them
must be paid. So long as we stand apart
from international councils organized in the
interest of peace we must prepare for war
or ignore the first laws of common sense.
Thus it is clear that while methods of taxa
tion may be revised, a great burden will
continue to bear upon the people for years
to come.
Money, even for the uses of a benefcent
government, does not fall from the Clouds
The cost of the war will have to be paid out
of the toll of Americans and out of the re-
sources of our soil and our brains Tax
rates may be lowered in the course of time
but they will not be lowered by campaign
speeches. The burden will grow lighter
through increased production and increased
efficiency in American industry, and in no
other way. As business increases the weight
of taxation will be distributed over wider
areas, Thus peace and resumption of the
normal life in Europe should be matters Of
first concern to Americans Commerce with
the nations of Europe on scale, contem-
plated by far sighted American business men
would provide new sources of federal income,
since it would bring added revenues to the
nation as a whole. While Europe continues
III II turmoil OF WHO lnp OtllPr nations are
impoverished or antagonStic to America. the
tax burden will weigh the heavier on every
man, woman and child in the United States
The working budget for the next fiscal
year will, in Mr.. IouSton's opinion. require
revenues of not less than 81 600, 900 900 for
current expenditure. Where is the money
to come from? Mr.. Houston observed that
income and special tax receipts show dis
position to decline Here. perhaps. is one
of the important results of the strikes and
loCkOutS that were SO numerous during the
last eighteen months.
If business is permitted to become slack,
if quarrels between the two groups in in
dustry limit production, if the country
doesn't hustle and work and regain some
thing of its old pace, taxes. no matter what
the politicians say, will fall on constantly
narrowing groups.
The secretary of the treasury. like other
conservative economists. considered only
visible responsibilities. If in the future it
becomes necessary for us to resort to elab-
crate systems of armament and to engage in
extensive rivalriPS with other powers or
groups of powers for mastery on the sea or
in the air, no man can say how high the
tax rate may climb in the next few years.
SO it must be apparent that the ignorance
and vanity and pride that continue to bunglc
the affairs Of civilization may prove to be
pretty costly even to the people of the United
States, who have been taught to believe that
isolation means freedom from all trouble.