The Sun and the New York herald., 1920-08-05
senator HArding's Explicit Pro-
grAmme to Reduce the
Cost Of Living.

After all the vain plaiitudes about
economy uttered but not practlsed by
the Democratic Administration. and
after the useless Democratic threats
against the profteer and the endless
noisy price investigations staged by
Administration henchmen for political
effect, It Is like welcome breath Of
fresh air TO review the concise,
straightforward formula which Sen
ator HANDING. II elected President, In
tends to follow as n means of reduc-
ing the cost Of living;
''Flrst-Revlse. and possibly en-
tirely repeal the excess profits tax.
This is the chief cause Of the high
price Of everything to-day. The
manufacturer collects IT, the whole
saler collects 1t. the retailer collects
h--wlth the result that the ultimate
consumer pays three taxes instead
Of ono.
"Seconi---Congresa will Immediately
abolish the Government tax on freight
and passenger traffic. The public
will promptly reap the benefit.
"Thlrd-Congress will Immediately
increase the tariff schedules and will
thereby not only decrease the tax
burden now falling on this country
by about S2OO,OO0,OOO but will pro-
tect industries and American labor
which need protection from low paid
foreign competition.
Fourth--Congress will materially
modify the income tax schedules and
bring about very considerable re-
duction in them"
Those four short paragraphs en-
body mine of economic wisdom.
They foreshadow the scrapping of a
convenient tax machbe which has
been the Joy of Democratic spend.
thrifts, making IT possible for them to
put into active. wasteful practice
their slogan of Easy come, easy CO."
But these four paragraphs, outlined
BY Senator HARDING to Representa-
tive SLEMP Of Virginia, and by him
to the Republican National Committee,
also contain in each of their integral
parts a potential means of relief for
the Oyerburdened consumer, the handi-
capped domestic business man and
the menaced international tEder who
witness other Governments tnking
every measure to protect their own in
dustry and foster their prosperity,
while our Administration remains in
active, sensing no approaching hard
ships but choosing to foresee only q
bissful future bestowed by kindly
Providence without effort on the part
Of the recipients.
Senator HARDING's first point on the
excess profits tax requires little eX-
PLANTATION. The Democratic Admins
tratiOn has invelghed times without
number against the practice of manu-.
facturers, jobbers, wholesalers and
retailers who have seized upon the
excess profits tax as q means of add
ing two or three times the amount Of
the tax in the shape of profits for
themselves. An army Of tax Office
sleuths has been required to ferret
out the true earnings Of corporations,
firms, partnerships and individuals
where there was cause to believe
something was being hidden. The
honest taxpayer helped bear the ex-
pense Of this army of investigators,
but received no credit for his own
personal integrity.
Every one was under suspicion. In
itlative was strangled and n premium
was paid to the man whe could hide
his earnings or spend them before the
tax collector arrived. The foremost
economists Of the country and Of the
world have declared the excess profits
tax is responsible for more turmoil
and unrest than all the other fiscal
measures put together. The man who
would rid the country Of such per
nicious system will win for himself
everlasting credit.
The second proposal to abolish the
transportation tax, means the pass
ing of another illusion. To colleci
money on railway traffic and theI
turn II back to make up railway
deficits only adds a wheel within q
wheel. The railroads need all thG
money that can be collected fron
shippers and travellers. To milk then
for an extra tax is to put a penalty
on internal commerce.
Thirdly comes a declaration in favor
Of sensible tariff to help American
industry. The protective tariff, mucf
mallgned here, has been adopted by
both England and France In one form
or another. Within the British En-
pire there Is a vast maze Of preferen
tial duties which work to the advan
tage Of British products. For work
ing purposes the British Isles a4
maintained as centre Of free trade
But in actual practice the British
Empire is buttressed by q great wal
of protection in the shape Of direct
import levies against foreign goods
and in preferential privileges Of al
sorts. Including shipping, bunkering