The Birmingham age-herald., 1920-07-03

cratic party during the administration of Woodrow Wilson presents a chapter of substantial achievements unsurpassed E the history of the republic For fifty years before the advent of this admin stration periodical convulsions had i'm peded the industrial progress of the American people and caused lnestimable loss and distress. By the enactment of the federal reserve act the old system. which bred panics, was replaced by new system, which insured confidence. it was an indispensable factor in win ming the war and today it is the hope and inspiration of business Indeed, one vital danger against which the Ameri- can people should keep constantly on guard is the commitment of this system to partisan enemies who struggled against it's adoption and vainly attempt ed to detain in the hands of speculative bankers a monopoly of the currency and credits of the nation Already there are well-defined indications of an assault upon the vital principles of the system in the event of republican success in the elections in November.
 Under democratic leadership the Amer ican people successfully financed their stdpendous part in the greatest war of an time. The treasury wisely insisted turing the war upon meeting an ade- laate portion of the war expenditure from current taxes, and the bulk of the balance from popular loans and during the first full fiscal year after fighting stopped upon meeting current expendi- lures from current receipts. notwith- standing the new and unnecessary bur dens thrown upon the treasury by the delay obstruction and extravagance of a republican Congress-
 The non-partisan federal reserve au- |. 4.1, |.
 litical interference, or motive and in their own time and in their own way have used courageously, though eau tiously. the instruments at their dis posal to prevent undue expansion of credit in the country. As a result of these sound treasury and federal reserve policies the inevitable war imitation has been held down to a minimum. and the cost of living has been prevented from increasing here in proportion to the in- crease in other belligerent countries, and in neutral countries. which are in close contact with the worlds commerce and exchanges,
 After a year and a half of fighting in Europe and despite another year and a half of republican obstruction at home. the credit of the government of the United States stands unimpared the federal reserve note is the unit of N1i'tt tHlOuSIIpul dll tit WDflu, anu the United States is the one great country in the world which maintains free gold market
 We condemn the attempt of the re- publican party to deprive the American people of their legitimate pride in the financing of the war-an achievement without parallel in the financial history of this or any other country in this or any other war. And in particular we condemned the pernicious attempt of the republican party to create discontent among the holders of the bonds of the government of the United States and to drag our public finance and our bank ing and currency system back into the arena of party politics.
 TAX REVISION
 We condemn the failure of the pres ent Congress to respond to the oft-re- peated demand of the President and the secretaries of the treasury to revise the existing tax laws. The continuance in force in peace times of taxes devised under pressure of imperative necessity to produce revenue for war purposes IS indefensible and can only result in lasting injury to the people. The re- publican Congress consistently failed through sheer political cowardice to make single move toward a readiust- ment of tax laws which is denounced before the last election, and was afraid to revise before the next election We advocate tax reform and search ing revision of the war revenue acts to Tit peace conditions, so that the wealth of the nation may not be with drawn from productive ente rprise and diverted to wasteful or non- productive expenditure.
 We demand prompt action by the next Congress for a complete survey Of existing taxes and their modifica- tions and simplification with view to secure greater equity and justice in tax burden and improvement in ad- ministratio
 PUBLIC ECONOMY
 Claiming to have effected great econ omies in government expenditures the republican party cannot show the re- auction of one dollar in taxation as a corollary of this false pretense In contrast. the last democratic Congress enacted legislation reducing taxes from eight billions. designed to be raised. to six billions for the first year after the armistice, and to four billions thereafter; and there the total is left undiminished by our political adver- saries Two years after armistice day, a republican Congress provided for ex- pS'iUih5 tHS otuPCHQOuS SuIl OL p0,fUo, 390,327.30.
 Affecting great paper economies by reducing departmental estimates of sums which would not have been spent in any event and by reducing formal appropriations, the republican state ment of expenditures omits the preg nant fact that Congress authorized the use of one and a half billion dollars in the hands of various departments and bureaus, which otherwise would have been converted into the treasury and which should be added to the re- publican total of expenditures
 HIGH COST OF LIVING
 The high cost of living and the de- preciation of bond values in this coun try are primarily due to war itself to the necessary governmental expendi- lures for the destructive purposes of war, to private extravaganza to the world shortage of capital, to the in- flation of foreign currencies and credits and in large degree to constituencies profiteering.
 The republican party is resonsible for the failure to restore peace and peace conditions in Europe. which is a principal cause of poSt-arm stice infla tion the world over It has denied the demand of the President for neces- | sary legislation to deal with secondary and local causes The sound policies pursued by the treasury and the fed eral reserve system have limited il this country though they could no prevent the imitation which was worlt wide. Elected upon specific promises ! to curtail public expenditures, and tt bring the country back to a status O. effective economy, the republican part,