Douglas daily dispatch., 1926-12-08


results of extravaganza are ruinous
The property of the country, like
the freedom of the country, belongs
to the people of the country. They
lave not empowered their govern
ment to take a dollar of it eXceot
for a necessary public purpose. But
if the constitution conferred such
right, sound economics would forbid
it. Nothing is more destructive of
the progress of the nation than
government extravaganza. 1t means
an Increase in the burden of taxation,
dissipation of the returns from enter
prise, decrease in the real value
CT wages, with ultimate stagnation
and decay. The whole theory of
our institutions is based on the
liberty and independence of the in
dividual He is dependent on him
self for support and therefore entitled
to the rewards of his own industry.
He is not to be deprived of what
he earns that others may be benefited
by what they do not earn. What
he saves through his private effort
is not to be wasted by government
extravaganza.
Our national activities have become
so vast that it is necessary to
scrutinize each item of public ex
penditure if we are to apply the
principle of economy Al the last
session we made an immediate in
crease in the annual budget of more
than $10O,OO0,000 in benefits cen-
ferred on the veterans Of three wars,
H1,.I Jirc ri RI
Improvement. Many projects are
being broached requiring further
large outlays 1 am convinced that
it would be greatly for the welfare
of the country if we avoid at the
present session all commitments ex-
cept those of the most pressing
nature. From reduction of the
debt and taxes will accrue a wider
benefit to all the people of this
country than from embarking on any
new enterprise. When our war deb
is decreased we shall have resources
for expansion. Until that is accom-
plished we should confine ourselves
to expenditures of the most urgent
necessity.
The department of commerce has
tion in making plans and securing
support of all kinds of national
enterprise for the elimination OF
waste. Efficiency has been greatly
promoted through good management
and the constantly increasing Co
operation of the wage earners
throughout the whole realm of priv
ate business. Il is my opinion that
this whole development has been
predicated on the foundation of a
protective tariff.
Tax Reduction
AS result of economy of, ad-
ministration by the executive and
of appropriation by the congress,
the end of this fiscal year will leave
q surplus in the treasury estimated
at $3.50, 100000. Unless otherwise
ordered, such surplus is used for the
retirement of the war debt A bond
which can be retired for 100 cents
will cost the people 104 IA cents
to retire a year from now. While
I favor speedy reduction of the
debt as already required by law and
in accordance with the promises made
to the holders Of our Liberty bonds
when they were issued, there is no
reason. why balanced portion of
surplus revenue should not be applied
to a reduction of taxation. It can not
be repeated too often that the enor-
nous revenues of this nation could
not be collected without becoming a
charge on all the people whether
or not they directly pay taxes.
Everyone who is paying for the bare
necessities of food and shelter and
clothing, without considering the bet
ter things of life, is indirectly paying
Il national tax. The nearly 20,O00,O00
owners of securities, the additional
scores of millions of holders of in
surance policies and depositors in
savings banks, are all paying a
national tax. Millions Of individuals
contribution to the national treasury
which runs from / 1-2 to 25 per
cent of their income, besides a
number of special requirements, like
automobile and admission taxes
Whenever the state of the treasury
will permit, L believe in reduction
of taxation. / think the taxpayers
are entitled to it. But I am not
advocating it for the benefit of the
country.
If it appeared feasible, L should
welcome permanent tax reduction
at this time. The estimated surplus,
however, for June 80, 1928, is not
much larger than is required in a
going business Of nearly $4,O0O,OO0 900.
We have had but a few months
experience under the present revenue