Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-07-02

FINANCIAL ACH1EN EMENI.
a review Of the record of the democratic
party during the administration Of Wood
row Wilson presents a chapter of sub
stantial achievements unsurpassed in the
history of the republic. For fifty years
before the advent Of this administration
periodical covulsiOns had impeded the
industrial progress Of the American peo-
pie and caused inestimable loss and dis
tress.
BY the enactment of the federal re-
serve act, the old system, which bred
panics, was replaced by new system,
which insured confidence. 1t was an
Indispensable factor in winning the war,
and today ~ is the hope and inspira-
ton of business.
Indeed, one vital danger against which
the American people should keep con-
stantly on guard is the commitment OF
this system TO partisan enemies who
struggled against its adoption and valnlY
attempted TO retain IN the hands OF
speculative bankers monopoly OF the
currency and credits Of the nation. Al
ready 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
American people successfully financed
their stupendOus part In the greatest
war Of ali times.
The treasury wisely insisted dur
ing the war upon meeting an ade-
Quate 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 expenditures from current
receipts, notwithstanding the new
and unnecessary burdens thrown
upon the treasury by the delay, oh
struction and extravaganza OF re-
publican cOnRreSa.
The nonparrlsan federal reserve au-
thoritisS have been wholly free OF po-
Itleal interference or motive and, in
their own and their own way have used
cOura geOusly though cautiously, the In
sIruments at their disposal to prevent:
undue expansion Of credit in the eOun
try. AS q result Of these sound treas
ury and federal reserve policies, the IN
eVlta bic war imitation mas been heI1
down 10 4 minimum and the cost Of
living has been prevented from inereas-
ing mere IN proportion TO the Increase
in other belligerent countries and IN
neutral countries which are IN close con-
tact with the worlds commerce and
exchanges.
After a year and a half OF lighting
in Europe, and despite another Year
and a hall Of republican obstruction
at home, the credit OF the govern
ment or the United states stands IN
impaired the federal reserve note Is
the unit of value throughout all the
world and the United states is the
one great country in the world which
maintains a tree gold market.
We condemn the attempt of the
republican party to deprive the
American people of their Legitimate
pride in the financing OF the war, an
achievements without parallel in tho
financial history OF this or any other
country, in this or any other war.
And in particular We condemn the
perniciOus attempt of the republican
party to create discomfort among the
holders of the bonds of the govern
ment of the United states and drag
our public finance and our banking
and currency system back Into the
arena of psrty politics.
TAX REVISION.
We condemn the failure Of the present
congress to respond TO the oft repeated
demand of the president and the secre-
taries Of the treasury TO revise the exist
ing tax laws. The continuance in force
in peace times of taxes devised under
pressure Of imperative necessity to pro-
duce a revenue for war purposes Is in
defensible and can only result in last
ing injury to the people.
The republican congress persist
emily failed, through sheer political
cOwardice, to make a single move
toward a read justment of tax laws
which it denounced before the last
election and was afraid to revise be-
fore the next election.
We advocate tax reform and a searching
revision of the war revenue acts to ut
peace conditions so that the wealth Of
the nation may not be withdrawn from
productive enterprise and diverted to
wasteful or uOnpr0ductiye expenditure.
We demand prompt action by the
next congress for complete survey
of existing taxes and their mOdihea-
tlon and simplicatlOn with a view TO
secure greater equity and Justice In
tax burden and Improvement in adj
miniStratiOn-
PUBLIC ECONOMY.
Claiming to have effected great acono-
mics in government expenditures, the re-
publican party can not show the reduc-
ton Of one dollar in taxation as a cor
Rotary Of this false pretense. In con-
trast, the last democratic congress en-
acted 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 their total is left unfinished by
our political adyersaries.
Two years after armistiee day
republican congress provides for ex-
pending the stupendOus sum of So
4O3, 800 $3.50.
Effecting great paper economies by re-
ducing departmental estimates of sums
event, and by reducing formal appro-
priations, the republican statement Of
expenditures omits the pregnant fact
that the congress authorized the use Of
81 500, 900 900 in the hands Of various de-
partments and bureaus, which otherwise
would have been converted into the treas
ury and which should be added to the
republican total of expenditures.
HIGH COST OF LIVING.
The high cost of living and the de-
probation OF bond values in this country
are primarily due to war itself, to the
necessary governmental expenditures for
the destructive purposes Of war, to
private extravagance, to the world short
age of capital, to the imitation of foreign
currencies and credits, and in large de-
gree, to conscienceless profteering.
The republican party is responsible for
the failure TO restore peace and peace
conditions in Europe, which is a prin-
the world over. 1t has denied the de-
msnd of the president for necessary
legislation to deal with secondary and
local causes. The sound policies pur
sued by the treasury and the federal re-
serve system have limited in this coun-
try, though they could net prevent the in
hatlon which was worldwide. Elected
upon specific promises to curtail public
expenditures and to bring the country
back to a status of effective economy, the
republican party In congress wasted time
and energy for more than year in vain
and extravagant inventions, costing the
taxpayers great sums OF money while
revealing nothing beyond the incapacity
Of republican politicians to cope with
the problems.
Demanding that the president, from
his place at the peace table, call the
congress into extraordinary session
for Imperative purposes of readjust-
ment, the congress when convened
spent thirteen months In partisan
pursuits, failing to repeal q single
war statute which harassed business
N initiatn a sin gle ctira