The New York herald., 1921-11-16
Harding's Policy Is Praised,
Plans to Restore Busi-
ness Lauded.
SALES TAX rs DEFENDED
POstmaster-General Contends
Present Plan Is O Brake
to Industry.

tolo the t1lrn Avenue Association last
night that they who speculate as to
whether the arms limitation con-
ference will be successful are working
an unwarranted wrong. It will and
must be successful. he said.
His speech was the feature OF the
annual dinner Of the association, held
at the Waldorf. Mr.. Hays, vigorously
applauded throughout his speech,
aroused enthusiasm by an eloquent
eulogy OF President Harding and q
call OF the business men Of America
to stand by the Administration in its
fight back to normalcy. He spoke OF
new forms of taxation, saying that the
whole burden OF the war must not be
carried by the present generation
He went on to deplore forms OF taxa
ton that kill initiative in business and
thrift, and finally declared himself in
favor Of a "sales tax" or whatever
you choose to call q system which
taxes consumption OF goods rather
than an abstinence from a consump-
ton OF goods"
Mr.. Hays argued for a tariff commits
sion that had authority. and eventually
appealed to the business men listening
to him for their interest in politics.
Former Gov. Smith was the toastmas-
ber and he warmly praised the Fifth
Avenue Association for its business
methods and its civic spirit. Eugenius
II. Outerbridge spoke from his position
nf TDNr &c u,
Authority and DR.. John II. Finley also
talked.
Depression Laid 10 War.
Mr.. Hayes said II was his opinion
that the business man surveying his
business house after fire would apply
himself to the matter of what caused
this disaster and what can we do to
prevent it from happening again" He
said business disaster in the present case
was due to war. AS preventive
against q recurrence of the present
causes he drew attention to the arme-
ment limitations conference, saying:
"The common enemy Is now disarmed
and helpless. There is no longer need
for the armament we started to build
Under these circumstances, Is IL con-
ceivable that we shall find It impossible
to agree mutually to cease from that
creation of ornament for which the need
no longer exists? If we armed as
friends. can we not also as friends cease
TO arm? Is it said that after drawing
our swords in the unity OF defence
against common foe, We cannot now
perform the obvious action OF sheathing
those swords when tho foe IL beaten?
The idea Is absurd. For the first tiIne
in history Il Is possible to have and we
now have, O conference looking to the
limitation OF armament which contains
only friends. At any other time for O
generation past any conference OF the
grsat nations Of the world looking to
disarmament would have included ono
who was not a friend"
Mr.. Hays then described the conference
az containing nothing but friends and
unity" The world wanted programme
and r leadership, he said. Both have
been furnished and action will follow. he
went on. President Harding's most
striking taicpt, Mr. Hays said, Is to in
spire harmony.
Referring to the Presidents pledge TO
bring the country back to normally"
he said:
NOW, in its moro obvious sense,
''normalcy' in country or throughout
tho world is O. condition which can be
expressed in concrete facts and figures.
But In q larger and more important
sense, though a moro subtle one, nor
malcy IS @ psychological condition. It
| Is a state OF mind. At any time and
| under any Presidency tho state OF mind
OF the country is largely influenced by
the state OF mind Of tho man IN the
White House.
"Placed in so high and so conspicuous
! n station emanations from his personal
| ity rediate throughout tho county and
| affect or create tho state OF mind u the
country. The White House is, indeed
'.tho biggest pulpit in tho country
From the maA In the White House tho
country gets much Of the inspiration OF
IT'S own moods. The country Is colorod
by his personality. What he does, what
he thinks. what he feels, whatever are
the natural and unconscious cmanatlons
from hia personality set the key OF tho
country's temper.
Tax Plans Must Change.
a