The Washington times., 1924-12-03
ECONOMY IS
GWEN BIG
EMPHASIS
Repeal Of Tax Publicity Clause
and Entrance Into World
Court Among Proposals
(cOntinned from FiFst Pase.l

lie COSlS 'OI our IldLlOHdl ana 1OcaI
governments combined now stand
at sum close to 500 for each
inhabitant of the land. al little
less than one-third of this Is rep
resented by national expenditure,
and little more than two-thirda
0by local expenditure. It Is an
ominous fact that only the Ma
tional Government is reducing It's
debt. Others are increasing theirs
at about about $1,000 000.0 each =
year. The depression that over
took business, the disaster expert
enced in agriculture, the lack of
employment and the terrific
shrinkage in all values which our
country experienced In !, most
acute form in 1920, resulted in
no small measure. from the pro-
hibitive taxes which were then
levied on all productive effort.
The establishment of a. system of
drastic economy in public ex-
penditure, which has enabled us
to pay off about one.fifth of the
national debt since 1919. and al
most cut in two the national tax
burden since 1921, has been one
Of the main causes in re-establish-
ing prosperity which has come
to include within its benefits al
most every one of our inhabitants
Economy reaches everywhere. It
carries a blessing TO everybody.
Would Cut Government Cost. 81
The fallacy Of the claim that
the costs of government are borne
by the rich and those who make
q direct contribution to the Ma
1.h A,erx
often exposed. No system has
been devised. I do not think any
system could be devised, under
which any person living in this
country could escane bain~ af-
fected by the cost af our govern
ment. It has a effect both upon
the rate and the purchasing power
y, of wages. 1t is felt, in the price
sOf those prime necessities OF ex~
istence, food, clothing, fuel and
shelter. It would appear to be
elementary that the more the
Government expends the more, It
must require every producer to
contributes out of his production
to the Public Treasury, and the,
less he will have for his own bene-
mt. The continuing costs of pub
lie administration can be- met III
only one way-by the work. Of
the people. The higher they be-
come, the more the people can
work for themselves.
The present estimated margin
between public receipts and ex-
penditures for this fiscal year is
very small. Perhaps the most
important work that this session
OF the Congress can do is to con-
tinue a policy of economy and
further reduce the cost of govern
ment, in order that we may have
q reduction of taxes for the next
fiscal year. Nothing is more like
" to produce that public conf
dence which is the forerunner and
the mainstay Of prosperity, en-
courage and enlarge business ,op-
portunity with ample opportunity
Tor employment at good wages
provide a larger market for ag.2
ricultural products, end put our
country in a stronger position
TO he able to meet the world COM
petition in trade. than q corltinu-
ing policy of economy. or course
necessary costs must be met,
proper functions of the Govern
ment performed. ana constant In.
vestments for capital account and
reproductive effort rust be car
ried on by our various depart
ments. But the people must know
that their Government lie placing
upon them no unnecessary bur-
den.
Lower Taxes Desired.
Everyone desires reduction of
taxes, and there is great pre-
ponderance of sentiment in favor
of taxation reform. When APP
proved the present tax law, II
stated publicly that / did SO In.
spite of certain provisions which
believed unwise and harmful.
One Of the most glaring of these
was the making public of the
amounts assessed against differ
ent income-tax payers. Although
that damage has now been done,
! believe its continuation to be
detrimental to the public welfare
and bound to decrease public
revenues, so that it ought to be
repealed.
Anybody can reduce taxes, but
1t is not so easy to stand in the
gap and resist the passage of in
creasing appropriation bills which
would make tax reduction impos.
sible. 1t will be very easy to
measure the strength of the at
tachment to reduced taxation by
the power with which increased
appropriations are resisted. II at
the close of the present session
the Congress has kept within the
budget which I propose to pre-
sent, II will then be possible to
have a moderate amount of tax
reduction and all the tax reform
that the Congress may wish for
during the next fiscal year. The
country Is now feeling the direct
stimulus which came from the
/ passage of the last revenue bill,
and under the assurance of a
reasonable system of taxation
there is every prospect of an era
of prosperity Of unprecedented
proportions. But. 1t would be idle
to expect any such results unless
business can continue free from
excess profits taxation and be ac-
corded a system of surtaxes at
rates which have for their, object
not the punishment Of success or
the encouragement of business, Y
but the production of the great
est amount of revenue from large
incomes. am convinced that
the larger incomes OF the coun.
try would actually yield more
revenue to the Government IL the
basis Of taxation were scientifica1-