, 1921-04-21

taxation from the shoulders of the
American people.
Extravaganza Menace to Nation.
One cannot be unmindful that
economy is a much employed cry most
frequently stressed in prediction ap-
peals, but it is ours to make it an out
standing and ever impelling purpose
in both legislation and administration.
The unrestrained tendencies to heed
less expenditure and the attending
growth Of public Indebtedness, extend
ing from federal authority to that of
state and municipality and including
the smallest political subdivision, con-
stitute the most dangerous phase of
government today. The nation cannot
restrain except in its own activities,
but it a be exemplar in a wholesome
reversal, The staggering load Of war
debt must be cared for in orderly fund
ing and gradual liquidation. We shall
hasten the solution and aid effectively
in lifting the tax burdens If we strike
r%esolutely at expenditure. 1t Is far
more easily said than done.
In the fever of war, our expendi-
lures were so little questioned, the
emergency was so impelling, appropri-
alton was so ~unimpeded that we little
noted millions and counted the treas
ury inexhaustible. 1t will strengthen
our. resolution if we ever keep in mind
that a continuation of such a course
means inevitable disaster. Our current
expenditures are running at the rate
of approximately five billions a year
and the burden is unbearable. There
are two agencies to be employed in
correction: One is rigid resistance in
appropriation and the other is the ut
most economy in administration. Let
is have both. 1 have already charged
department heads with this necessity.
1 I'm sure Congress will agree; and
both Congress and the administration
may safely count on the support Of all
right minded citizens, because the bur
den is theirs. The pressure for ex-
penditure, swelling the flow In one To-
cality while draining another, is sure
to- defeat the imposing Of just burdens
and the effect of our citizenship pro-
testing outlay will be wholesome and
helpful. I wish it might find its re-
flex in economy and thrift among the
people themselves, because therein
lies quicker recovery and added secur-
ity for the future.
The estimates of receipts and ex-
penditures and the statements as to
the condition of the treasury which the
secretary of the treasury is prepared
to present to you, will indicate what
revenues must be provided in order to
carry OIL the governments business
and meet its current requirements and
fixed-debt charges. Unless there are
striking cuts in the important fields
of expenditure, receipts from internal
taxes cannot safely be permitted to fall
below $4,000, 000, 900 in the fiscal year
1922 and 1923. This would mean to-
tai internal tax collections of about
INT billion less than In 1920 and one
half billion less than in 1921.
Tax Adjustment Essential.
The most substantial relief from the
ent from the readjustment of internal
taxes, and the revision or repeal of
those taxes which have become unpro-
ductive and are so artificial and bur-
as to defeat their own pur-
pose. A prompt and thorough-going
revision of the internal tax laws, made
with due regard to the protection Of
the revenues, is in my judgment, a re-
quisite to the revival of business ac-
tivity in this country. 1t is earnestly
hoped, therefore. that the Congress
will be able to enact, without delay, a
revision of the revenue laws and such
emergency tariff measures as are
necessary to protect American trade
and industry.
1t is of less concern whether inter
nal taxation or tariff revision shall
come first than has been popularity
imagined, because we must do both,
but the practical curse for earliest ac-
c~omplishment will readily suggest it.
self to the Congress. We are commit
ted to the repeal of the excess profits
tax and the abolition of ineQuities
and unjustifiable ex~asperatlons In the
present system.
The country does not expect and
will not approve a shifting Of burdens.
1t is more interested in wiping out the
necessity for imposing them and elm
mating confusion and cost In the col
lection.
Emergency Tariff Demanded.
The urgency for m instant tariff
enactment, emergency in character and
understood by our people that 1t is for
the emergency only. cannot be too
much emphasized. I believe In the
protection of American industry. and
II IL our purpose to prosper America
first. The privileges Of the American
market to the foreign producer are Of
fered too cheaply today. and the effect
on much OF our own productivity Is
the destruction OF our s~elf-reiiance.