Evening journal., 1921-10-15

continuance of those tribulations
which now weigh upon all the peo-
pie, although they were meant and
mistakenly expected to weigh upon
a small minority only. But TO ac-
complish this task. we must be will
ing TO recognize the facts which ex-
perience, both with us and in other
countries, has demonstrated unmis-
takably. and to act accordingly.
The whole theory never applied
heretofore either in this country or
elsewhere, Of piling on huge taxes at
the top in the expectation that they
would not percolate downward, is a
fallacy which has been proved such
by the actual test of the last few
years and will, ! am convinced, be
found not to be reconcilable with the
social, economic and governmental
conceptions of this or any other
country. the institutions OF which are
based upon the system Of individual
enterprise as contrasted with the
socialist or semi-socialist theory of
civilization and government.
There is bipartisan testimony
from the highest quarters to the ef-
feet that the extreme brackets of our
surtaxes have ceased TO be produc-
tive, are harmful in effect and should
be adequately reduced Former
President Wilson has so stated. So
have three Democratic Secretaries
OF the Treasury, viz. Messrs. McAdoo,
Glass and Houston. So has the for
mer Under-Secretary OF the Treas
,ury, Mr. Lefiingwell, Republican.
So has the present Secretary. Mr..
Mellon. So have the most eminent
economic experts A reduction of the
highest surtax bracket to 32 % which
with the addition OF the normal tax
means income taxation at the rate of
little short OF forty per cent. to
which must be added state, county
and municipal taxation. cannot be
considered in times OF peace as
erring on the side OF excessive len
iency
Relief for Unemployment and Bad
Times.
7. The road to the relief OF un-
employment and an Improvement in
the plight Of the farmer lies. among
other things along a system Of tax
alton which seeks TO promote indus
try rather than lame and retard It.
realize fully, and deplore. the situa-
ton in which the farmer in this
country finds himself It is a situa-
tion which has been created by no
fault Of his, but II is a situation from
which he cannot escape by narrow
or sectional devices. The greatest
aid which the farmer can exert on
his own behalf IS to take a helpful
attitude toward industry and insist
upon his representatives In Congress
giving effect TO this enlightened point
OF view. In so far as a revival Of
manufacturing and productive in
dustry generally is made possible.
will there be created that purchas-
ing and consuming power upon
which the farmer must depend 10
sell the commodities which he pro-
duces. II is, largely, because pur-
lchaslng and consuming power is so
greatly reduced that the farmers
iplight has been rendered so grave.
What he needs most is 10 restore
that purchasing and consuming
power on the part OF the people at
large to whom he must sell his
products, and nothing can contribute
more effectively. in this country. TO
the attainment OF that consumma-
ton. than a sound and broadminded
revision OF our tax laws And may I
venture to add that revision along
the lines now being urged upon the
Senate Finance Committee will be
fatal to accomplishing the ends
which. while they are OF importance
TO the well-to-do. are OF infinitely
more vital consequence TO the farmer
whose markets have crumbled and
Ito the workingmen whose jobs have
disappeared.
Huge Exodus OF Capital
s. Lastly and II seems to me, con-
clusively. There are at present over
fifteen billion dollars Of tax-exempt
securities available and more are
coming out almost daily. In the first
eight months Of this year approx
mately seven hundred million dollars
Of such securities have come upon
the market; in the month OF August
alone. one hundred million dollars
True. there is a movement on foot
to have a constitutional amendment
adopted which will prevent hence
forth the issue OF tax-exempt securi-
ties. But such an amendment would
relate to future issues only. and
moreover, cannot be ratified and be-
come effective for several years. BY
that time, the aggregate OF tax-ex-
empt securities outstanding will have
become 80 vast that for immeuiate
revenue purposes the prohibition OF
future issues will have little more
effect than locking the stable door
after the horse has escaped.
There is but one effective way oi
stopping the huge exodus which has
been going on and continues ever
increasingly 20 go on, of capital into
the haven OF tax-cxempt securities
and that Is, 30 10 reduce surtaxes as
20 remove the immcnsity OF the ad.
vantage now offered by such sccuri.
ties.
Sound LEGISLATION a Prerequisite for
Prosperity
Q. With due Difference to your IA,
greater knowledge OF politics.
venture 10 say that the people Judge
a political party not by the detail,
OF its legislative cnactmcnts but b,
their results. What Is of vital con.
Germ 20 the average man and woman
as distinguished from agitators and
vociferous ''spokesmcnT' Is not wbeth.
erer the surfaces are 70, 80. 40. or Sd
per cent, but whether the actions of
the party In power will. i'm effect
rctard or promote the return of c-ooe
times and abundant cfunIovn,on, n