Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-07
CONGRESS CAN'T SUCCEED
BY ATTACKING SYMPTOMS
But Its Leaders Do Not Seem to Under
stand That the Little Problems Are
Parts Of One Big Problem Of
World Readiustment


tails when they should have been consider
ing general principles. Which means that
they have not mastered the essentials of
leadership. They do not seem to be able to
formulate constructive policy broad enough
to take in all the details
The revision of the tariff and the internal
revenue laws, the adjustment of the allied
debt. the payment OF bonuses to the soldiers,
the relief of the farmers and the ratification
of the peace treaty are tied up more closely
than the Peace Conference tied the League
of Nations covenant with the Versailles
agreement. They cannot be considered sep
arately with any hope of reaching n satsfac-
tory conclusion.
The peaceful business of the United States
and of Europe is out of joint because of
the war.
Money was spent without stint or limit for
years Economy could not be considered
when results had to be accomplished in the
shortest possible time. We INDUCED in Hn
orgy of spending. Money flowed freely.
The Government spent it and the citizens
into whose pockets it went spent with equal
freedom and with less justification.
When the fighting ended the income Of
tens of thousands of war workers suddenly
stopped.
Private industries, which had been selling
their products at high prices, found the de
mand for them stopped with equal sudden
ness
But the war taxes which were levied on
them are still in force two and a half years
after the fighting ceased. This Is true both
in this country and in Europe.
The people have been forced to economzc,
but tho Governments are still spending on
large scale and are seeking ways and
means to enable them to raise money to pay
the interest on their war debts and to carry
on their business in the extravagant style to
which they became accustomed during the
war.
Congress can pass no adequate readjust-
ment laws without considering the situation
on both sides Of the ocean.
The European Governments owe the Gov
ernment of the United States SO. 900 ,000,-
600. European business men owe American
business men between $1,000, 900 600 and
So 900, 900, 900 more.
How to pay this Is pcrpleXing our debtors.
How to enable them to pay it ought to
receive the earnest consideration of Con-
gress.
An adjustment of the debt TO US of the
foreign Governments will instantly relieve
the Federal Treasury. The payment or the
funding of the debts of the European bust
ness men to America will release the cnor-
nous sums tied up in foreign credits and
relieve to that extent business conditions
here and abroad.
This means that the new Tariff Law must
be constructed by men who see beyond the
American coast line and can understand
that a protective tariff TO be effective must
in fact protect the interests for the benefit
of which it is framed.
narrow minded provincial Tariff Act
that ignores the necessity for encouraging
international trade may be protective in
name, but it would be destructive in fact
and fail to accomplish those things which
It's uninformed draftcrs hoped for.
II means, also. that tho internal revenue
laws must be revised in such way as TO
take the brake off business and to encourage
enterprise.
Those laws are in large part responsible
for the present conditions under which n
man who is making no profit this year is
paying heavy ta2os on his profits last year,
and is rapidly getting into such a condition
that he will have nothing to tax next year.
If the present laws continue in force the
source of revenue will bc destroyed, for the
taxable profits and the taxable incomes will
be reduced to the disappearing point.
One of the aXiOms of economies is that
4 Corollary of that nzlom is that the taxing
power exercised uuintcllIgenty win destroy
lust as effectively as though destruction were
the purpose of the tax.
The internal revenue laws are unlntelli
gent.
Every business man knows this and every
Congressman ought to know il.
They have absorbed Large part Of the
working capital Of the country. They have
hov a6
so long and through so serious n period OF
business depression that they have forced
many men thi. year to draw on their capital
or their savings to pay their taxes on the
business done last year.
And yet Congress does nothing and talks
| about rcCessing until the autumn.
| However much any one may desire to
! pay bonus to the soldiers. this will b"
| impossible under present conditions. 1t will
| need between 81 800, 900, 600 and 50 $50. e
| 600 OGO 10 meet tho bonus charges. Yet
| the revenues are constantly declining and
tho source Of the reyerHes is being de-
| strOyed.
Financial rehabilitation of the country
| must prcredr any serious consideration Of a
bonus appropriation, as Secretary Mellon
poiuted out In his letter to Senator
| Frelinghuysen,
Tic troubles Of the farmers are part oi
the general troubles affecting all productive
| enterprises,
Cotton mills here aud abroad are idle be.
cause people are not buyiug cotton goods
Therefore the price OF cotton Is 80 low that
the cotton growers are threatened with
bankruptcy.
People out of work are not buying mca
or fruit or vegetables or bread in sucl
quantities MS they are accustomed to buy
those things when they nro earning wages
Lack of demand is forcing the price
so low that the farmers are clamoring fo
some kind of relief.
But special legislation for the farmers an,
cotton growers will not help. Neither vii
special legislation for the manufacturers.
There is 10 way out save through legisla
tion based on realization Of the necessit
| nf attacking the cause of the trouble rathe