Evening star., 1920-06-12

with a view to securing consolidation,
a more business-iike distribution of
functions. the elimination of duplica-
ton. delays and overlapping of work
date and efficient administrative or
ganiZation.
President CIings
to War Powers.
The President clings tenaciously to
his autocratic wartime powers.
His veto of the resolution declaring
peace and his refusal to sign the
bill repeating wartime legislation, no
longer necessary. evidence his deter
mination not to restore to the nation
and to the states the form of govern
ment provided for by the Constitu-
ton. This usurpation is intolerable
and deserves the severest condemna-
ton.
Taxation's Burden
Becomes Staggering.
The burden of taxation imposed
upon the American people is stagger-
ing: but in presenting true state
ment of the situation we must face
the fact that. while the character of
the taxes can and should be changed.
an early reduction of the amount of
revenue to be raised is not to be ex-
pected.
The next republican administration
will inherit from its democratic prede-
cessor floating Indebtedness Of
over $4,000 900 900. the prompt liqui-
dation of which is demanded by sound
financial considerations. Moreover
the whole fiscal policy of the gov
ernment must be deeply Influenced by
the necessity of meeting obligations
in excess of $4,000. 10000 which ma
ture in 1928. But sound policy equally
demands the early accomplishment of
that real reduction of the tax burden
he hX- cyyhS nj
ing simple for complex tax laws and
procedure. prompt and certain deter
mination of the tax liability for delay
and uncertainty. tax laws which do
not for tax laws which do excessively
mulct the consumer or needlessly re-
press enterprise and thrift.
We advocate the issuance of a sim
plfed form of income return: au
thorizing the Treasury Department
to make changes in regulations eff
fective only from the date of their
approval: empowering the commits
sioner of internal revenue, with the
consent of the taxpayer, to make
final and conclusive settlements of
tax claims and assessments barring
fraud and the creation of a tax
representatives of the taxpaying pub
lie and the heads of the principal
divisions of the bureau of internal
revenue to act as standing COM
procedure and law. and to make
recomm mendatfons to the Congress.
Banking Policy
Is Criticized.
The fact is that the war to a great ex-
tent was financed by a policy of infla-
tion through certificate borrowing from
the banks and bonds issued at artificial
rates sustained by the low discount
rates established. by the Federal Re
serve Board. The continuance of this
policy since the armistice lays the ad-
ministration open to severe criticism.
Almost up to the present time the prac-
tices of the Federal Reserve Board as to
credit control have been frankly domi-
mated by the convenience of the Treas
ury.
The results have been a greatly in
creased war cost. serious loss to the
millions of people who in good faith
bought liberty bonds and victory notes
at par. and extensive postwar specula-
ton. followed today by restricted
credit for legitimate Industrial expan
sion. AS a matter Of public policy we
urge all banks to give credit preference
to essential industries.
The federal reserve system should be
free from political influence. which Is
quite as important as it's independence
Of domination by financial combinations.
Living Cost
Is Condemned.
The prime cause Of the Thigh cost of
living has been first and foremost so
per cent depreciation In the purchasing
power of the dollar. due to gross expan-
sion of our currency and credit. Reduced
production, burdensome taxation, swol-
len profits and the increased demand for
goods arising from fictitious but en-
larged buying power have been contrib
uting causes in a greater or less degree.
We condemn the unsound fiscal poll
o{1 81 Nc fc aH oiy1iS g "a nj
which have brought these things to pass
and their attempts to impute the conse-
Quences to minor and secondary causes.
Much of the injury wrought is irrepar-
able. There is no short way out, and
we decline to deceive the people with
vain promises or Quack remedies. But
as the political party that throughout its
history has stood for honest money and
sound finance, we pledge ourselves to
earnest and consistent attack upon the
high cost Of living by rigorous avoid
ance of further imitation in our govern
ment borrowing. by courageous and in
telligent de1ation of overexpanded cred
1t and currency. by encouragement OF
heightened production of goods and serv-
ices by prevention Of unreasonable prof
its, by exercise of public economy and
stimulation of private thrift and by re-
vision of war-impoSed taxes unsuited to
peace-time economy.
We condemn the democratic admin
force the nti-prof1teering laws enact
ed by the republican Congress.
Opposes U. 8.
Control Of Railroads
We are opposed to government
ownership and operation or employe
operation of. the railroads. In view Of
the conditions prevailing in the coun-
try, the expenditures OF the last two
years and the conclusions which may
be fairly drawn from an observation
Of the transportation systems of other
countries, 1t Is clear that adequate
transportation service both for the
present and future can be furnished
more certainly. economically and
efficiently through private ownership
and operation under proper regulation
and control
There should be no speculative profit
in rendering the service of transporta
ton, but in order to do justice to the
capital already invested in railway
enterprises. to restore railway credit.
to induce future investments at a rea-
sonable rate and to furnish enlarged
facilities to meet the requirements of
the constantly increasing development
and distribution a fair return upon