The Washington herald., 1921-01-25


draws just that amount whatever It may
be, from industry and other forms of in
vestment- Whatever government takes in taxes,
IS taken from business uses.
The excess profits tax is admittedly ineouitable
and unjust 1t be fairly estimated in many
cases and is impossible of fair adjustment But
this is not the final for its universal con-
demnation.
This final reason is that it takes from industrial
expansion a vast volume of investment for which
It would be fully adequate credit basis 1t is taken
not alone from those who pay it, but in much
greater measure from employment, construction,
manufacture and other factor of material pros
perity.
But all that is true as to this iniquitous tax,
IS equally true OF wasteful unnecessary govern
ment expenditures. Whatever can be saved in this
way IS at once freed for a MANIFOLD volume of in
vestment for development and expansion, for new
ventures and to increase established business to
meet, or expand, demand.
1t was this view which was expressed bv
Herbert Hoover in recent New York address to
the Merchants Association. In this address Mr.
Hoover said:
There is involved in all these processes of
recuPeratlon an issue OF the utmost importance,
and that IS the whole question of disarmament
II you will contemplate the United States at
the present moment, with warehouses burst
ing with food, with food actually rottng many
places within our borders with raw material
unmarketable, with our shelves overcrowded
with teXtlles-h you will contemplate Europe
today, short of food, unable to cothe their
people, and if you will contemplate at the same
moment that this government is e9Spendng a
sum annually more than would be required to
set the world processes of business ahoat-you
may be able to come to a very trite conclusion:
mat why impose upon US, the business COM
munlty, burden of 100000 900 year in taxa
ton, and at the same time ask to restore the
processes of business upon which the vital life
OF our own people must be maintained?
In all these questions there is involved
deeply the problem OF taxation, and unless we
can have some more sanity in the whole rela-
uonshlP as to armament have but little hope
OF finding from our community that surplus of
resources with which we can upbuild Europe
While Congress is discussing just how to ap-
proach this question of disarmament these cond-
tions continue to grow Austria has declared bank
Tuptcy and other countries on the verge, while
this country which, if any, is able 10 finance the
credits necessary to European buying the return
OF Europe to profitable, honest labor and the
sale OF Americas surpluses is spending much
more than the amount that would accomplish this,
IN unnecessary armament.
There are two ways to prevent wars: One is
with the big stick" The other is by worldwide
industrial condition of profitable employment, which
removes the inducement to war. The latter is be-
ing made almost impossible by the madness of the
great powers, in multiplying big sticks"
Congress has cut the regular army to purely
defensive standard Why wait for others to act be-
fore doing the same to the navy? This country
has no reason, and but thread of imaginary ex-
cuse, for having "the greatest navy in the world"
now, in 1928 or any other time
1t is troubled with hobgoblins, not facts If
the producers want market for their surpuses
now deterioratng in warehouses, the quickest way
. 81. 81;
power, not in building batteships, which may be
useless when finished, but IN foreign credits and
Investments to restore foreign buying capacity