Pueblo chieftain., 1921-04-10

PARTY. TAKES
U. S. MONDAY
CONTINUED from Page One>


conditions known as Dumping"
The third is known as the "Ameri-
can valuation bilr' intended to pre-
vent the practical notification of our
tariff by the present chaotic differ
ence in exchange between our own
money and that OF foreign govern
ments.
With these three emerfency mea-
sures out of the way congress will
turn to the two subjects of revising
the taxes and writing permanent
tariff bill.
In revising of the taxes the changes
now in sight are these: The income
| taxes and surtaxes on very large in
comes-the ones which run over 40
| to 70 per cent, will be repealed and
rearranged so that 40 per cent will
be the highest tax laid on any in
come. The purpose of this change
, on large incomes is not primarily to
make it easier for the rich. The
purpose is based on the discovery
| by experience that the present sur
taxes have caused the owners of
| large amounts of money to put that
money in the tax exempt bonds of the
| federal, state and municipal govern
| ments. The hope is that by reducing
the higher rates, the possessors of
these large fortunes will be induced
in the developmnt of private corpora
tions like railroads, public utilities
and other forms of private business.
| If any change on the smaller in
comes from s50,O00 n year to $780,
900 is made it is more likely to be
| in the direction of increasing them
than OF reducing them.
Another change tentatively dis
| cussed in the field OF taxation is the
repeal OF the exccss profits tax on
corporations. This repeal is con-
tomplated partly on the theory that
a 1,a NJ Iof1
! tions the corporations will not have
large profits and this form of taxa
tion will yield little.
The final change within the field
of taxation that so far that has the
approval of any number of important
leders is the adoption of the direct
sales taxes" Which is substantially
/ as tax of either one half of one per
cent or one per cent, as may later
be decided, on the entire gross sales
of everybody who sells goods or ser
vices.
As to the making the new perman-
ent tariff, the Republican leaders are
just beginning to see the expected
difficulty and opposition inherent in
the change brought about by tho war
in the fiscal and economic relations
of America to the rest of the world.
The fact the war changed us from
borrowing nation to leading nation
and that a leading nation always
tends toward facilitating imports is
just beginning to be apparent. The
advocates of n tariff high to the point
of being prohibitive will not have in
the present congress the support they
have always had in the past from tho
manufacturing and capitalist classes
| of the east.
The strongest demand for high
tariff now comes not from .the manu-
featuring communities of Now England
and the east SO much as from the
farming communities OF the middle
west and west.
In any event OF this situation will
come n division among the Republi-
cans and other conditions so chaotic
as to make II impossible to predict |
anything about tho outcome of the
tariff except to say that the develop |
ments will be surprising. So much for |
tho main outlines of the Republican |
program. There arc n number of iso-
lated measures which will come up
from time to time: One will be the |
immigration restriction bill which was |
passed by the last Congress by ma !
jority of so to In the senate and over |
Z to 1 in the house but which was vc- |
toed by Wilson. There is no reason to |
anticipate that tho preponderance of |
sentiment in favor of this bill will be
less in sthe new congress than the old. |
Another important bill will be the |
the last census. The issue in this bill |
Is whether tho lower house OF Con-
gross shall be kept at its present size |
of 435 members or whether IL shall |
be increased by IS members. II the |
size is kept at t35 1t will mean that |
in the shifting of population revealed |
by the last census certain states will
gain members and certain other states.
notably Missouri. Iowa and Indiana
Will lose members. 1t Is the hcsitancy |
TO compel any state to have a smaller |
number OF congressman than 1t has
heretofore had and fraternal dislike |
on the part of members OF Congress
to exile some OF their associates that
constitutes tho only argument for in
crcasing membership.
One other important measure thai
will come up carly in the new sessio,
is the hill appropriating twenty-five,
million dollars to Columbia to cove,
damages alleged to have been don,
that country by our action in rccog.
nizing tho Republic of Panama when
II seeded from Columbia in connec-
tion with the building OF the Panama
canal. To this bill there will be strong
opposition. 1t was probably mere
accident that led President Harding I
to choose this measure as the first that
he has asked the Senate TO accept as
n part OF his program in the field OF
foreign relations. Nevertheless as II
has turned out. he Is now In the posi-.
tion at the very outset OF his admin
OF pressing for tho passagl
of treaty which is going to have de
tcrmincd opposition.
Two things viii come up in the COM
Ing congress which arc in the nature OF
business. They arc tho
army and the navy appropriation bills.
The army bill passed the last session.
but was vetoed by Wilson, probably
because congress has cut tho requested
in half and reduced the
army TO 10000 the navy appropriation
bill passed the ho0se. but the senate
wished to raise IT from four hundred
million to hvo hundred. when this
question comes up now, We may have
n renewal of the effort of Senator
Bornh and others to bring about some
degree of disarmament. This. as well