The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1922-10-13
WASHINGTON LETTER
BY Wallace Bassford.
Special News Correspondent.

made by the President IN HIS mes
sage vetoing the bonus bill To the eI-
fect that there will be a deficiency III
the revenues during the present fiscal
year of 672 millions. The Democrats
have insisted tor weary months That
the economy claims OF the Republl-
cans were unfounded in fact and that
the Government was spending more
money than was coming in, and that
a private business conducted on such
a basis would be considered to be
very badly run Any level headed
business man facing such situation
would try desperately TO either in
crease income or cut down expenses.
But the Republican administration,
in fullest and unrestricted control OF
all branches of the Government, is dc
ing neither. The Wall Street journal
which surely knows good deal about
finance. takes the position that the
Congress does not understand that
increases in tax rates above certain
points usually reduce the volume OF
money obtained through that taxa
ton In nothing is this so apparent
as in tariff taxation. The Underwood
law, with its moderate rates, brought
in almost 400 millions per year; the
rates permitted a reasonable amount
of importation of manufactured artl-
cles, yet not enough to seriously
compete with the American made
goods. The importations had the sal
utary effect of restraining the Amer
lean manufacturer from protiteerlng
off the home market. But quite the
opposite is true OF the Fordney law,
in which a. multitude of rates are so
high as to prohibit or greatly reduce
importations; in many important
cases (such as aluminium ware, en-
tirely controlled in America by Sec
rotary Melons colnpanieSl the rate
is practically prohibitive. Mellon now
has monopoly of the American mar
ket and can advance rates on every
article made of aluminium in the
United States. With aluminium wares
shut out. no revenue can be collected
at the port Of entry on that important
item In the cases OF wool, there is Il
difference: this country cannot pro-
duce 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 article
into which it enters or is even claim
ed to enter. The net result of the
heavy rate increases on most articles
will be a decided drop in the revenue
obtained by the Treasury, pro-
nOunced increase in the cost 10 the
consumer of every article the impOr-
lation of which is thus further re-
stricted. and the necessity for the
people to pay yet other taxes to make
up 1Cr those lost through the failure
of European goods to enter our Gus
tom houses. Already there are hints
thrown out of the necessity of laying
additional taxation to meet the deficit
now piling up-amounting to about
$34 for each head of a family in the
land. OF course, the burden falls
heaviest on the larger families and
those who like to buy the better class
of goods.
For three and a half years the Re
publicans have absolutely controlled
the Congress and for ninete IL months
have had all branches of the uoJeIn-
ment The war ended almost four
years ago; all war expenses have
enueu CACcDlluS lIlClC SlS Oh JULIUS
the care Of the injured soldiers and
the widows and orphans, and certain
other smaller items. After deducting
all of these, it is found that the pres
ent administration is spending more
than twice as much per annum as the
Wilson administration was using just
before the world war began. The full
figures can be obtained from the re-
cent very able speech OF Senator Sim
mons in the Senate. For more than a
year every Republican who made a
speech on the subject has loudly
claimed that the administration was
saving money and cutting appropria-
! tions. They have used every system
/ of juggling known to financial sharp
erS and three-card- men, but in
the end the President himself, faced
/ by the fear OF the bonus adding fresh
embarrassments to the Treasury. has
I had to admit that all their claims
were false. In the necessity OF giving
Il clinching reason why the bonus
should not be paid he admits that the
expenses of the Government in the
present fiscal year (from midnight OF
June so. 1922. 10 midnight of June 80
1929 are running twothirds of a
billion ahead of the income of the
Treasury. 1t has not been a month
since Republican leaders in Congress
were vOciferating loudly about saw
! ing 10 millions per month; only q
few months ago General Dawes list
! ed hundreds of items as savings
most OF which were uneXpended bal
ances of appropriations, some of them
! Is or go years old. But all were list
ed as saved this year. One was an
old unsnent balance left after digging
the Panama Canal; another was the
sum of $4,000 voted 16 years ago tc
the widow of a New England Senator;
she was rich and would not accept it
So it remained in the Treasury. 1t is
. NV claimed as one of the 'econo,
mics" of the Harding administration
A few wears of such economy" would
put Uncle Sam in the hands of Tho