, 1923-02-18

spent a week in Washingto
HIS first hand findings and unbiased
report is of vital interest.
Future taxes" saws Mr. BAbson,
depend. in part. upon future expen
ditures. The figures for the past
year on this score. 1t least. are very
hopeful. Whatever criticism may be
made of the present administration
it must be admitted that It has ex
erted n continuous effort to reduce
expenditures. An honest attempt Is
being made 10 introduce and operate
a budget system. At the conference
of bureau chiefs, held recently at the
Continental Memorial Hall some 500
men met to affect further economy
in the operation OF the government
business.
Fixed charges. interest rates, and
previous obligations. of course, can.
not be changed. and in spite Of the
splendid work done to cut down cur,
rent expenditures the expenses OF
the government for 1922 reached a
total of s3,795. 500 1913 Nearly one
billion Of this amount was paid out
as interest on the public debts such
as Liberty bonds and other outstand,
ing securities In the United States;
$3.50. 100000 was used in pensions to
soldiers, or their dependents of the
var OF 1912. Mexican war, Indian
wars, civil war. and Spanish-Ameri.
can war, while $3.50. 900 900 was paid
for compensations, care and training
of veterans Of the world war. Ap.
proximately $455 .ooo. 900 went for the
army, and S475. o0o. 900 for the navy.
About so per cent OF total expen-
ditures go to the payment of interest,
sinking funds. pensions and the re-
lief to veterans.
During the fiscal year of 1922. the
government collected $4l0e,1 04,.
1904. Present prospects. however.
Indicate that no such amount will be
collected in 1923. The excess prsofits
tax has been removed and general
business Is not az prosperous and
therefore will not yield as much in
this situation, President Harding has
earnestly requested that expenditures
be cut by S92. ooo, 900 more.
eff we look Il the United States
government as we would a corpora
ton there is no cause for alarm. Elk.
lenses have increased. to be sure,
but expenses have increased in all
businesses. On January 1. 1923, we
had in the United States. in god S3,'
933. 475 SIS. about 45 per cent of all
the gold in the world. OF this, over
three and one.quarter billion Is hello
IN the treasury, mostly in the form Of
bullion. II we look at the ledgers,
we find hat $500. 900 taxpayers and
.1o1 800 corporations contributed g..
06s. 12s, 192. 6S in 1922. While only
sass, 443 .3S7.1s was received from Gus.
toms and duties.
Further study indicates that the
problem during tho next few years
is not n of trying to decrease the
present budget. but rather of trying
to hold It where 1t is and keep it
from going much higher.
unless a miracle happens. some
sort of a bonus bill will be passed in
1924. II not passed with the presi.
dents consent II will be passed over
his veto. This will call for a huge
additional sum Of money. Then there
is a tremendous road building pro-
gram, the proposed naturalization Of
coal mines and the demands upon
the treasury by the Farmer Bloc.
when I talked with financiers re-
Sarding possible measures Of taxation
to meet these additional expendi-
tures and proposed increase in our
national budget, the suggestions are
as follows:
IA sales tax. "A tax or
H-kk 49, - -- o UNprfkeF-
customs IND internal A.
Collecting from the Europe the
$40. 900 .0O0, 900 owed us, and g.
The restoration OF the excess prof
its tax.
The keener stu6ents of taxes al.
most universally recommend h
sales tax. but politically there seems
little chance OF the new congress put
ting 1t through. A tax or light beers
and wines at the present time Is GER
tainly out of the question. Both Gus
tom and internal evenu taxes are
as high as the public stand.
Hence, by the process OF elimination
the political leaders s~trenuously re-
fuse to cancel the European debt for
fear OF the re-enactment of tho excess
profits tax.
Their fea In this regard is well
founded not from n. purely selfish
point df view on the business man
who must pay such a tax. but be-
cause of its effect on the prosperity
OF the whole country. The re.enact-
ment of such a tax would be a dis
tinct setback to every one Natural
resources. available labor. o even
capital. Is sufficient to make a coun'
try prosperous. Russia is rich in
natural Resources. Africa abounds
In available labor. and in every
try where money IL cheapest bust
is at its worst. Prosperity Is
really the result of Initiative cour-
age and hopefuiness. These intan'
gibie but all.important forces are the
result OF encouraging business. We
get prosperity by putting a
ball and chain On the interpreter.
Inheritance taxes may be In
creased without affecting business.
Congress can even increase the tax
on incomes from stocks and bonds
without hurting the farmer. but a re-
Of the excess profits tax.
Daralyzes efficiency. enterprise
and the Initiative would be 0!stinctly