Evening star., 1923-12-06
CONTINUED from First Pase.)

AhooO
ready been reduced by q recent
decision, but there arc valid
claims reaching we'll toward
$500.000.000. Our thousand citi-
zens with credits due them OF
hundreds OF millions OF dollars
have no redress save In the action
very W SUBSTANTIAL nt Interests. Which
1t is the duty Of our government
to protect as best 1t can. That
course ! propose to pursue.
1t Is for these reasons that we
have q direct interest in the eco
nomic recovery Of Europe. They
are enlarged by our desire for
the stability OF civilization and
we are making sacrifices to that
end none can deny. Our deferred
interest alone amounts to mil
lion dollars every day. But re-
Gently we offered to aid with our
advice and counsel. We have re-
iterated our desire to see France
paid and Germany revived. We
have proposed disarmament. We
have earnestly sought to compose
differences and restore peace. We
shall persevere in well-dotng, not
by force, but by reason.
Forefxn Papers Transmitted.
Under the law the papers per-
tanning TO foreign relations to be
printed are transmitted as part
of this message. Other volumes
OF these papers will follow.
Reorxanis<d Foreign Service.
The foreign service of our gov
ernment needs to be reorganized
and improved.
Recites Fiscal Condition.
Our main problems are domestic
problems. Financial stability is
the first requisite Of sound gov
ernment. We Cannot escape the
effect Of world conditions. We
cannot avoid the inevitable re-
suits Of the economic disorders
which have reached all nations.
But we shall diminish their harm
to US in proportion as we con-
tinue to restore our government
finances to n secure and endurable
position. This we can and must
do. Upon that firm foundation
and prosperity From that source
must come relief for the people.
This Is being accomplished by a
drastic but orderly retrenchment,
which is bringing our expenses
within our means. The origin OF
this has been the determination Of
the American people. the main
support has been the courage OF
those in authority. and the effec-
system. The result has involved
real sacrifice by department heads.
but 1t has been made without
hlnching. This system is a law
of the Congress. It represents
your will It must be maintained
and ought to be strengthened by
the example Of your observance.
Without a budget system there can
be no fixed responsibility and no
constructive, scientific economy.
Has Cut Expenditures.
This great concentration Of ef.
fort by the administration and
Congress has brought the expendi-
lures. exclusive of the self-sup-
porting Post ONCE Department.
down to $4,000, 100000. 1t Is possi-
Bile in consequence to make a
large reduction in the taxes OF the
people, which is the sole object of
all curtailment. This is treated
at greater length In the budget
message. and a proposed plan has
been presented in detail In a state
ment by the Secretary of the
Treasury, which has my unQuaH-
ned approval. especially com.
mend a decrease on earned incomes
and further abolition OF admission.
message and nuisance taxes. The
amusement and educational value
OF moving pictures ought not to
be taxed. Diminishing charges
investment will afford immense
relief. while a revision Of the sur
taxes will not only provide addi-
tional money for capital invest
ment, thus stimulating industry
and employing more labor. but will
not greatly reduce the revenue
from that source, and may in the
future actually increase II.
Being opposed to war taxes In
of excess-profits taxes, A very
great service could be rendered
through immediate enactment Of
legislation relieving the people of
some OF the burden of taxation.
To reduce war taxes is to give
every home a better chance.
For seven years the people have
the tremendous burden OF national
and local taxation. These must
both be reduced. The taxes Of the
nation must be reduced now as
much as prudence will permit. and
expenditures must be reduced ac-
cordingly. High taxes reach
everywhere and burden every
body. They bear most heavily
upon the poor. They diminish in
agriculture Improbable. They In
crease the rates on transportation
They are a charge on every neces-
sary Of life. OF all services which
the Congress can render to tho
country. I have no hesitation in
declaring this ono to be para
mount. To neglect II. to postpone
1t, to obstruct it by unsound pro-
posals is 10 become unworthy Of
public trust. Tho country wants
this measure to have the right Of
way over all others.
Another reform which Is ur-
gent in our fiscal system is the
abolition Of the right toffssue tax
exempt securities. The existing:
system not only permits a large
amount OF the wealth OF tho ma
tion to escape, its just burden. but
municipal extravaganza. This
should be prohibited by constitu-
tional rnendment. All tho wealth
OF the nation ought to contribute
its fair share to the expenses OF
the nation.
Tariff Law PRAISED.
The present tariff law has accom-
plished its two main objects. It
has secured an abundant revenue
and been productive Of an abound
ing prosperity. Under It the coun-
try has had q very large export
and import trade. A constant re-
vision Of the tariff by the Congress
10 disturbing and harmful. The
present law contains an elastic
provision authorising the Prssi.
dent to increase or decrease pres
ent schedules not In excess Of so
per centum to meet the difference
In cost of production 1t home and
abroad. This does not, to my mind,
warrant q rewriting Of the whole
law, but does mean. and will bo
40 administered, that whenever tho
required Investigation shows that
Inequalities Of sufficient impor-
tance exist In any achedule the
power to change them should and
will be applied
Touches on Shipping.
The entire well being Of orr