Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-04-13
HARDING'S DOMESTIC POLICY

| Of economy. There is nothing new in this,
| Economy has been talked about by every
! President from Washington down. 1t has
been practirCd by few Congresses. Condi-
! tionn ar" such now that unless it is prar-
ticcd the taxpayers will visit rctribution
upon the otic"holdcrs who neglect their duty.
Tho government has been raising 5000.
| 600 OOO year This sum must bc cut TO
| $4,000. 900 600 or less. Government on
| pcnditurcs however, cannot be kept within
| these limits without eliminating all unnoccs-
| sary expenditures. Relief can bc found
! through revision Of the internal tax laws
! BY the repeal of those taxes which have be-
come unproductivc and by lowering of
| other taxes without which the business Of
the government cannot be carried on.
Mr. Harding's announcement that the
| administration is committed to the repeal of
| the excess profits tax is rcassuring. That
tan has been the most burdcnsomC and in
equitable Of all the various taxes levied
! during the war. business conditions now
arc such that it can produce little revenue.
But whether 1t produced revenue or not, it
| should be abolished without delay.
Many persons will agree with the Prcsi
| dent when be says that whether internal
taxation or the tariff is considered first is Of
less Importance than has been popularity
imagined. Both systems of taxation must
be revised, and the revision Can go along
together.
The President favors the passage Of a
temporary emergency tariff law to remain in
force only until Congress can draft II per-
mancnt revision of the present law. The
Simmons Underwood thrift now in force is
unsatisfactory. and was so proved within
less than year of its passage. II is agreed
by all believers in the American policy OF
protection that it should be continued in
force only so long as il will take for Con-
grcss to substitute something better for it.
The permanent measure. according to Mr..
Harding. should be designed to protect the
markets of'AmeriCa for American producers.
Every Republican will agree to this. What
disagreement there will be will come over
the best way to protect our markets without
interfering with that free flow of foreign
trade necessary to enable our debtors to pay
what they owe us.
From the question Of revenue the Presi-
dent turns to the regulation Of its cxpcndi-
turr. and he indorsrS the budget system and
urges Congress to provide for it at an early
date. lie insists on the application Of huSi-
ness methods To government business
Of equal importance is his opposition to
the Interference Of government in private
business. One of the most significant pas.
Sng"> in th" whole address announces that
lit is we'll TO have il understood that busi-
ness hAS a right to pursue its normal lcgiti-
mate and righteous way unmpCdcd, and II
Ought ~ har" no call TO meet government
competition. whore all risk is borne by the
publ" treasury"
Til" Prrsidrnt does not apply this prin-
ciDlr directly 70 the government owned ships
engaged in commerce, but it has a direct
bearing on the utimat" disposition of the
ships built during the war He discusses
can. attention to the fact that all differ.
"nro> o. opinion about the policy for it's
Uphulding hnv" been removed by the out.
Standing fact that we hay" built it, He
does say, however. that If our laws operate
{" 'h" advantage of our competitors they
should hc amended so as to give American
ships fair play on the sea. If ne had recon-.
mcnd'd som" form Of subsidy or subvcntion
Congress would have known exactly what
hn meant, but hr may have decided to allow
Congress 10 use its own Judgment. lie fore
shadows the sale of the merchant fleet ~
private owners when he says that its war
cost must BE- discounted to the actual pence
valu" and th" difference charged TO the war
emergency. This il practical business scnsr
His lnsIAt"nrC Uhal our Who'll" tTanSpUr.
tutiOu system should be O-OrdinHtpd in
such way that the land and water line,
may cO.Uprratr TO the best advantage j, in
accord with til" best business thinking on
tn" subject Congress som" years ago forced
The railroads. 10 sell their steamship linrs
on the theory that the interest Of the shin.
pcrS would thus be conserved. But ~ far
as is known the carrying out of this policy
has had no effect upon either railruud ~
steamship rates
The basis Of the solution Of the railroad
problem no finds in al assurance thnt there
Is To be no experiment with government
ownership and that no taxes arc 10 b" levied
TO cover deficits in IA service which should he
self sustaining. When this j. understood
progress can be made toward an adjustment
OF the costs Of the operation of tho railroads
IN such way as 10 meet cxprnhcs At
present, he insists, both railway charges and
costs Of operation are too high, and must hc
reduced if the products OF the country arc
to BE- transported on terms which business
can stand. THIS means reduction in wagcs
H~ we'll aS in the cost Of railroad equipment.
The President realizes this, for he says Tim,
ne inheritance of Capitaistir exploitation
must be removed and that labor must inin
with the management in understanding that
the public which pays is the public TO b, +,
served This nsistcnCe on the rights Of tho
public comes most oppOrtunrll
\ plea is entered for the Formulation of
q national road building policy on broadrr
lines Federal aid is now given to the states
but without such restrictions as common
prudence should dictate. The President In
sSts that no federal money should be sprnt
for roads anywhere for the maintenance Of
,yhirh provision had not been made lie
regards maintenance aS of equal Importance
with building in the first place. II is part of
n program for the conservation of tho ma
tional resources and il based on the yomo
sound sense that controls In the management
of private business.
II the President can secure legislation
carrying into effect these recommendations
he will make record Of first rate achieve.
ment.