Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-14
WORDS WITH PROFIT IN THEM

WORDS WITH PROFIT IN THEM
Public interest. by reason Of sub
jects now featured III the current
news. may have given more heed to
what President Coolidge in his New
York address said about the investi-
cation Of oil leases and relations with
Mexico than to such important mat
tiers as agriculture and taxation.
The Presidents discussion Of those
matters was mastery. No superfiu-
Gus words were employed and each
was expressive OF the meaning be-
hind It. 1t will he OF profit TO give
them consideration to which they are
entitled. His illustrations were most
apt.
Take this, for instance:
~ very important social and eco
nomic question ~ also involved in
high rates. That Is the result tax
stion has upon national development.
Our progress in that direction de-
ponds upon two fac'Ors-per5onal
ability and surplus income. An eX-
banding prosperity requires that the
largest possible amount OF surplus
income should be invested in pro-
ductive enterprise under the direction
OF the best personal ability. This
VIII not be done II the rewards OF
such action are very largely taken
away by taxation. II we had a tax
whereby on the first workingday the
government took percent or your
wages. on the second 0ay 10 percent,
on the third day 20 percent. on tho
fourth day. so percent, on the fftn
day 50 percent. and on the sixth day
80 percent. how many Of you would
continue to work on the last two
DAYS Of the week: IL Is the same
with capital. Surplus income will go
into tax exempt securities. 1t will
refuse to take the risk incidental to
cmbarking in business. This will
raise tho rate which established
business will have TO pay for new
capital. and result In a marked in
crease In the cost of living. II new
capital will not flow into competing
enterprise tho present concerns tend
seward monopoly. increasing again
the prices which the people must
pay.
"The high prices paid and low
prices received on the farm are d.
rectly due to our unsound method or
taxation. shall illustrate by SIM
pie example: A farmer ships steer
to Chicago. His tax. the tax on the
railroad transporting tic animal, and
OF the yards where the animal is
sold. go into the price of the animal
to tho packer. The packers tax goes
into the price of the hide to the New
England shoe manufactures. The
manufacturers tax goes into the
price to the wholesaler. and the
wholesalers tax goes .nto the price
To the retailer. who in turn adds his
tax in his price to his purchaser. SO
Il may he said that if the farmer
ultimately wears the shoes he pays
everybody's taxes from the farm to
his feet. 1t is for this reason that
high taxes mean a high price level,
and n high price level N turn means
difficulty in meeting world compet-
ton. Most Of NIL. the farmer suffers
from the effect of this high price
level In what he sells he meets
world competition with low price
level. II Is essential. therefore. for
the good OF the people as n whole
that we pay not so much attention to
the tax paid directly 10y certain
number of the taxpayers but we must
devote our efforts TO relieving the
tax paid indirectly ly the whole
people"
In some decree This address or
President Coolidge before that big
metropolitan audience and over the
radio to millions Of others was test.
Much Of what needed to be said con-
cerncd subjects In which general in
terest Is often painfully general.
Such expression os.we have heard,
both from those who read the mess
age and those who heard il over the
radio, has been one OF emphatic APP
prevail. At this crucial time this inn
preston should prove a source OF
Strength to the President when all
those whose ambitions iun counter to
his denomination are missing no OPP
portunity to weaken him in public
estimation. The courage, ability and
tnfiexihle honesty With which he is
meeting the onslaught commands the
admiration as we'll rs the respect OF
people without regard 20 party.