Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1920-07-06

tress. by the enactment OF the fed J
eral reserve act the OLD system, which
bred pauics. was replaced bS a ne"
system. which insured confidence. 1t
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
American people should keep con-
stantly on guard is the commltmen,
OF this system to partisan. enemies
who struggled against its adoption
and vainly attempted 10 retain in the
hands of speculative bankers mon
opoiy OF the currency and credits OF
the nation. Already there are we'll
defined indications of nassault upon
the vital principles of the system IN
the event of republican success in the
elections in November,
Under democratic leadership tn"
American people successfully financed
their stupendous part in the greatest
war of all time. The treasury wisely
/ insisted during the war upon meeting
an adequate portion of the war eX-
penditure from current taxes and the
bulk of the balance from popular
loans, and, during the first full fiscal
year after fighting stopped, upon
meeting surrent expenditures from
current receipts, Notwithstanding the
new and unnecessary burdens thrown
upon the treasury by the delay, OBJ
struction and extravaganza of re-
publican congress.
The non partisan federal reserve
authorities have been wholly tree OF
political interference o rmotive and,
in their own time and their own way,
have used courageously, though eau
tiously, the instruments at their dis
posal to prevent undue expansion or
credit in the country. AS a result or
these sound treasury and federal re-
serve policies, the inevitable war in
fiation has been held down to min
imum and the cost of living has been
prevented from increasing here in
proportion to the increase in othsr
belligereDt countries and in neutral
: countries which are in close contact
with the worlds commerce and en-
, changes.
After year and a half of fighting
in Europe, and despite another year
and half of republican obstruction
at home, the credit of the government.
= of the United States stands unim'
!, paired, he federal reserve note is the
"a unit of value throughout all the
!, world, and the United States is the
= one great country in the world which
. maintains a free gold market.
We condemn the attempt OF the re-
9 publican party to deprive the Ameri
). can 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 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 to
: drag our public finance and our bank
:. ing and currency system back into
a the arena of party politics.
). TAX REVISION.
9 We condemn the failure of the
3 present congress to respond to the
T oft-repeatcd demand of the President
: and the secretaries of the treasury to
+ revise the existing tax laws. The
!. continuance in force in peace times
Q of taxes devised for war purposes Is
u indefensible and can only result II
o lasting injury to the people. The re
T. publican congress persistently failed
l. through sheer political cowardice, to
= to make a single move toward re-
adjustment of tax laws, which it de
I nounced before the last election and
q was afraid to revise before the next
4 election.
8 We advocate tax reform and a
+ searching revision of the war revenue
:. acts to fit peace conditions SO that
n the wealth Of the natiOn may not be
: withdrawn from productive enter
9 prise and diverted to wasteful or non
I productive expenditure.
/ We demand prompt action by the
n next congress for a complete survey
: of existing taxes and their modifica
> ton and simplification with view tt
y securing greater equity and justice in
q tax burdens and improvement in ad
: ministratiOn.
5 PUBLIC ECONOMY.
n Claiming to have effected grea,
Economies in government expendi
lures, the republican party cannot
show the reduction of one dollar il
n taxation as a cOrollary of this false
il pretense. In contrast. the last demo
l. cratic congress enacted legislation re
! ducing taxes from eight bolliOns, de
e signed to be raised to six billions fol
g the first year after the armistice. an
: to four billions thereafter; and Their:
. the total is left undiminished by oul
> political adversaries. Two years after
e Armistice day republican congress:
e provides for cxpending the stupen
i dous sum of IS, 403.39O,327.3O
# I. Affecting great paper economies by
reducing departmental estimates o.
Y sums which would not have beer
Q spent in any event. and by reducing
n formal appropriations, the republican
4 statement of expenditures omits the
e pregnant fact that congress author
s lied the use of one and half billion
s dollars in the hands of various de
G partments and bureaus, which other
: wise would have been covered int
l. the treasury. and which would b.
y added to the republican total of ex
r penditures.