Iron County register., 1922-10-12
Wash ington Correspondence.
BY W ALLAoE BAssFoRD.

made by the President in his message
vetoing the bonus bill to the effect
that there will be deficiency in the
revenues during the present fiscal
year of 672 millions. The Democrats
have insisted for weary months that
the economy claims of the Repnhli-
cans were unfounded in fact and that
the Government was spending more
money than was coming in, and that
q private business conducted on such
basis would be considered TO be very
badly run. Any level headed business
man facing such situation would try
desperately to either increase income
or cut down expenses. But the Re-
publican administration, in fullest and
unrestricted control of all branches of
the Government, is doing neither.
The Wall Street Journal, which sure
ly 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 taxation. In nothing is
this SO apparent as in tariff taxation.
The Underwood law, with its moder-
ate rates, brought in almost 400 mill
lions per year; the rates permitted a
reasonable amount of importation of
manufactured articles, yet not enough
to seriously compete with the Ameri-
can made goods. The importations
had the salutary effect of restraining
the American manufacturer from pro-
fiteering off the home market. But
quite the opposite is true of the Ford
ney law, in which multitude of rates
are 30 high as to prohibit or greatly
reduce importations; in many import
ant cases (such as aluminium ware,
entirely controlled in America by
Secretary Melons companies) the
rate is practically prohibitive. Mel
Ion now has q monopoly of the Ameri-
can market 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 case of wool, there is q
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 decided drop in the revenue
obtained by the Treasury, pronounc-
ed increase in the cost to the con-
sumer of every article the importa-
ton of which is thus further restrict
ed, and the necessity for the people to
pay yet other taxes to make up for
those lost through the failure OF
European goods to enter our custom
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 family in the
land. OF course, the burden falls
heaviest on the larger families anc
those who like to buy the better class
of goods.
For three and half years the Re-
publicans have absolutely controlled
the Congress and for nineteen month";
have had had all branches OF the Gov
ernment. The war ended almost foul
years ago; all war expenses have end
ed excepting interests on bonds, thu
care Of the injured soldiers and thu
widows and orphans, and certain
other smaller items. After deductins
all of these, it is found that the pres
ent administration is spending NOR
than twice as much per annum as thu
I
Wilson administration was using jus
before the war began. The full
figure can be obtained from the re
cent very able speech OF Senator Sim
mons in the Senate. For more thai
year every Republican who made
speech on the subject has loudl
claimed that the administration wa
saving money and cutting appropria
tions. They have used every system
of Juggling known to financial sharp
ers and three -card-monte men, but i
the end the President himself, face
by the fear OF the bonus adding fres
embarrassment to the Treasury, ha
had to admit that all their claim
were false. In the necessity Of givin
clinching reason why the bonr
should not be paid he admits that th
expenses OF the Government in tf
present fiscal year (from midnight
June 80, 1922, to midnight Of June 8
1903) are running two thirds OF q bi
lion ahead OF the income OF the Trea
ury. 1t has not been q month sin'
Republican leaders in Congress wei