The Cordova daily times., 1921-07-30
Americas Position in the World Is Both
 Unique and Fortunate
Representative in Congress from Ohio
By SIMEON D. TESS

revision or the tax system.
 The tariff measure is framed upon the protection basis with due re- gard for revenue, which under the proposed measure is expected to in- crease from the present amount of S337 900 900 to at least $5,000 900, 900. The tax measure will doubtless re- peal the war excess profits tax and lower the upper range of the sur taxes to avoid driving income into the investment in tax exempt securi- ties. thereby defeating the very pur- pose of the tax. Hope is held out for the repeal of the transportation tax, dependent upon our ability to find another and better source nf supply the $330 100000 of revenue from that tax What substitutes are to be adopted is still to be worked out The hope that we might save enough through our economy pro gram to make it unnecessary to adopt any new tax is no longer shared by the legislator, due to the numerous unexpected claims from the war days coming in for payment.
 The treasury head is now deal ing with the floating debt of nearly three buiion dollars, in judgment the most dangerous indebtedness. If way can be found to pay off this obligation it would at once release over six billion dollars Of com. mercial credit for investment in pro duCtive industries. The lack of capi- tai on the one hand and the conse- ouent high rate of interest on the other prevent construction work which now demands billions of dol. lars in railroad improvement. house building and other construction work.
 A refunding of the public debt now in bonded form is inevitable and will doubtless be cared for in due time However it is not agreed that the floating debt can be funded without great injury to the Liberty bond holder. Most thinkers agree that the present policy of short time bank borrowing is economically un- sound and industrially unwise if not dangerous. It has been suggested that an emergency tax on sales be laid for one year to cancel this obli- gation. This could not be done with. out action of congress, which means delay. In the meantime the secre- tary of the treasury proposes long CT time note of three years as a maximum at 5 per cent. a one year note at 51s per cent This is much better than either the present short term certificate or the long time popular bond. However this policy will continue the governments debt to the banks as most of the notes will he taken by the banks and will in q degree tie up needed capital for productive industry.
 Our foreign situation Is growing | better every day. Germany's ac- ceptance of the dictated indemnity, | if in good faith, opens the way for all Europe to get back to work ! This is the one supreme need of the | world at the present moment. So long as 2SO00,000 of EngIand's 4S.- 900 900 people are supported by gov ernment gratuities there is small l hope for that country, and much less for other countries not so well situ- ated.
 We will take every step to induce | Europe to fund her obligations to us | Our war loans to her were s9,660 .000.- | 900. upon which very little interest | has as yet been paid. In addition there is due us about s3,000, 900 900 l for surplus war material sold abroad. | It is estimated that from four to four and one-half billions of dollars are due American exporters, and at
 
 securities are held by Americans.
 
 In a bankrupt condition Europe is struggling to get on her feet. She calls for our raw materials but pleads no money with which to pay. Our government is not free to furth- CT increase the already over extend ed government credit to these coun- tries. The credits already extended by this country it's people includ- ing loans and purchases unpaid will amount to the enormous sum of $19,- 900 900, 900. In spite of this mammoth debt to us our country displays a genuine desire to assist these na-