, 1921-07-14
WORK OF 9th CONGRESS
Is EXPLAINED BY FE

! n be counted.
WORK OF 9th CONGRESS
Is EXPLAINED By FESS
II WASHINGTON. June ~. - How
congress is working out the greatest
reconstruction problem in the his
&. tory of the United States is told by
Chairman Simeonp. Fess, OF the
! National Republican Congressional
Committee. in a statement issued to-
day. He says:
Tariff legislation absorbs the time
OF the session that enacts it. From
the day Of the passage of the Under
wood bill it was known that 1t
would have to be repealed. Before
the year that saw its passage was
ended, general stagnation and par
alysis of enterprise with an army of
unemployment was upon us. The
European War alone saved the spon-
sors from defeat, by operating as the
most effective. protection possible.
When the Republicans were re-
turned to power, the Committee on
Ways and Means at once even be-
fore Harding was inaugurated began
to hold hearings upon the question.
AS soon as these were completed the
emergency tariff act was brought be-
fore the House and in due time
passed the Senate. 1t was defeated
by a Presidential veto from Wilson.
After the Inauguration of Harding
this measure was reintrOduced. 1t
was b%roadened somewhat so as to
protect our Industries by aid of an
anti-dumping clause. 1t passed the
House April 18th and the Senate
May 18th in amended form. 1t was
agreed to in conference and .ap-
proved by President Harding May
9th.
In the meantime, the committee
worked upon the permanent tariff
bill, having submitted separate
schedules to subcommittee. After
weeks OF the most continuous and
arduous labor the full committee has
completed the final draft. The e
ure will require most of July for its
consideration in the house when 1t
will go to the Senate and be referred
to the Finance Committee, which will
open hearings upon 1t. While this
committee Is conducting these hear
inps the Ways and Means Committee
will take up the other pressing Ques-
lions.
The chief and all-important ques-
ton for congress Is the revision OF
l LuC LIZA SyblCLH. IL 0CHAIC T AlIoACC
Committee conducted hearings on
this question during the month OF
May. The house will open hearings
soon after the tariff bill gets through
the House. 1t is expected these hear
ings will be completed, the bill draft
ed and passed through the Senate
complete its hearings on the tariff
questions.
The success Of any taxation sys-
TEN depends upon the business con-
dition Of the country. Where bust
ness Is stagnant tax receipts fall off.
The amount of tax therefore must
depend largely upon the amount OF
business transacted.
Tariff Legislation is designed to
promote the business condition Of the
country. 1t looks to the protection
policy that enables the fullest NEST
ment OF American capital in the best
employment Of American labor. upon
a scale OF wage to insure and main
tain an American standard Of living.
At the same time 1t provides reve-
nue. for the expenses of the govern
ment. The amount of yer from
this source under the present law
was $337.OOO.O 900 this year. Under
the proposed law 1t should reach at
least $1,000 900.
Logically Il was decided that tariff
legislation should come first.
a. 1t would offer a basis for tax
(2) 1t always interrupts business.
the sooner 1t Is enacted the sooner
business will settle.
(3) Tariff relief can begin at once.
tax relief will take effect next
year.
This character Of legislation is
more difficult than In any period of
the past. The condition of Europe
complicate the problem. Foreign
exchange, due largely to almost
hopeless money Initiation where gold
as a basis has been abandoned for
mere paper, makes tariff legislation
upon Q scientific basis almost impos-
sible. How to frame the Law to
protect our own industries from
countries. like Germany. paying one
sixth what we pay for labor. and
still not interfere with those coun-
tries in their struggle to get on their
feet IL new In tariff legislation.
The draft Of q bill containing
nearly one thousand paragraphs and
several thousand items, nearly q
thousand OF them never considered
in any previous tariff measure since
they were developed here while the
val embargo was on, and many OF
these items Involving acute differ
ences; cannot be made without time
to ma4uIe thu draft. While the
Ways and Means Committee has bsen
busy every day on this draft, the
Congress- has been losing no time in
it, work OF roconstruetion. Already
1t has enacted . most salutary In