Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-07
THE BIG DEFICIT

AVA a well, says the old provero'
A Washington correspondent very
truly remarks that there is food
for thought in the statement made
by the president in his message We
toing the bonus bill to the effect
that there will be a deficiency IN
the revenue during the present
fiscal year of 672 millions. The
democrats have insisted for weary
months that the economy claims OF
the republicans were unfounded IN
fact and that the government was
spending more money than was
coming in, and that a private busl-
ness conducted on such a basis
would be considered to be very
badly run. Any level headed bust
ness man facing such a situation
would try desperately to either IN
crease income or cut down ex-
penses. But the republican admin
~istration. in fullest and unrestricted
control of all branches of the gov
eminent, is doing neither. The
Wall Street Journal, which surely
knows a good deal about finance,
takes the position that the congress
does not understand that increases
in tax rates above certain points
usually produce the volume OF
money obtained through that tax
alton. In nothing is this so appar-
emit as in tariff taxation. The I'm
derwood law, with its moderate
rates, brought in about 400 millions
DER year; the rates permitted a rea-
sonable amount of importation OF
manufactured articles, yet not
enough to seriously compete with
the American made goods. The i'm
portations had the salutary effect
of restraining the American manu-
facturer from p~rofiteering off the
home market. But quite the oppo-
site is true of the Fordney law, IN
which a multitude of rates are so
high as to prohibit or greatly re-
duce importations; in many impor-
tant cases (such as aluminumware,
entirely controlled in America by
Secretary MELONS companies) the
rate is practically p~rohibitiVe'
Mellen now has a monopoly OF the
American market and can advance
rates on every article made of alum
mum in the United States. With
aluminium wares shut out, no rev.
enue can be collected at the port OF
entry on that important item. In
the cases of wool, there is a differ
ence; this country cannot produce
enough for the home supply, hence
much will enter regardless OF the
duty, but the duty will cause an
increase in the price of every ar
ticle into which it enters or is even
claimed to enter. The net result
of the heavy rate increases on most
articles will be a decided drop IN
the revenue obtained by the treas
urv. a pronounced increase IN the
cost to the consumer of every ar
ticle the importation of which is
thus further restricted, and the
necessity for the people to pay yet
other taxes to make up for those
lost through the failure OF euro
pean goods to enter our custom
houses. Already there are hints
thrown out of the necessity of lay
ing additional taxation to meet the
deficit now piling up-amounting to
about S34 for each head of a fam
ily in the land. Of course, the bur-
den falls heaviest on the larger
families and those who like to buy
the better class of goods.
For three and a half years the
republicans have absolutely con-
trolled the congress and for nine
teen months have had all branches
of the government. The war ended
almost four years ago; all war ex-
penses have ended excepting inter
ests on bonds, the care of the in
iured soldiers and the widows and
orphans, and certain other smaller
items. After deducting all OF these,
il is found that the present admin
~istration is spending more than
twice as much per annum as the
Wilson administration was using
lust before the world war began.
The full figures can be obtained
from the recent very able speech
of Senator Simmons in the senate.
For more than a year every repub-
lican who made a speech on the
subject has loudly claimed that the
administration was saving money
and cutting appropriations. They
have used every system of Juggling
known to financial sharpers and
three-card-monte men, but in the
- A.. or..;dept himself faced by