Douglas daily dispatch., 1926-12-08

developed by the returns of income
produced under it, which are not
required to be made until about
the time this session terminates, and
what the economic probabilities of
the country are in the latter part
of 1927, before we can reach any
justifiable conclusion as to perma-
nent tax reduction. Moreover the
present surplus results from many
nonrecurrent items. Meantime, it
is possible to grant some real relief
by simple measure making reduc-
tions in the payments which accrue
on the 18th of March ana June, 1927.
I am very strongly of the conviction
that this is so much a purely bust
ness matter that it ought not to be
dealt with in partisan spirit. The
congress has already set the notable
example of treating tax problems
without much reference to party,
which might well be continued. What
l desire to advocate most earnestly
is relief for the country from un-
necessary tax burdens. We can not
secure that if we stop to engage
in partisan controversy. AS 1 do
not think any change in the special
taxes, or any permanent reduction
is practical, I therefore urge, both
parties of the house ways and means
committee to agree on bill granting
the temporary relief which L have
Indicated Such a reduction would
directly affect millions of taxpayers,
release large sums for investment
in new enterprise, stimulating in
dus.rial production and agricultural
consumption, and indirectly benefit
ing every family in the whole coun-
try. These are my convictions stated
with fully knowledge that it is for
the congress to decide whether they
judge it best to make such a reduc-
ton or leave the surplus for the
present year to be applied to retire
ment of the war debt. That also
is eventually tax reduction.
Protective Tariff
1t is estimated that customs re-
ceipts for the present fiscal year
will exceed $615,OOO,OOO the largest
which were ever secured from that
source. The value of our imports
for the last fiscal year was $4,466,
per cent since the present tariff law
went into effect. Of these imports
about SIS per cent, or, roughly
$4,000, 100000, came in free of duty
which means that the United States
affords a duty-free market to other
countries almost equal in value to
the total imports of Germany and
greatly exceeding the total imports
of France. We have admitted a
greater volume of free imports than
any other country except England
We are, therefore, levying duties
on about $1,5OO, 100000 of imports
Nearly half of this, or $500, 100000,
is subject to duties for the pro-
lection of agriculture and have their
origin in countries other than Europe.
They substantially increased the
prices received by our farmers for
their produce. About $500, 900 900
more is represented by luxuries such
as costly rugs, furs, precious stones
etc. This leaves only about $780,
00,000,O00 of our imports under
schedule of duties which is in general
under consideration when there is
discussion of lowering the tariff
While the duties on this small por-
ton, representing only about ~ per
cent of our imports, undoubtedly
represent the difference between
fair degree of prosperity or marked
depression to many of our industries
and the difference between good pay
and steady work or wide unemploy-
ment to many of our wage earners,
it is impossible to conceive how
other countries or our own importers
could be greatly benefited if these
duties are reduced. Those who are
starting an agitation for a reduction
of tariff duties, partly at least for
the benefit of those to whom money
has been lent abroad, ought to know
that there does not seem to be
very large field within the area of
cur imports in which probable reduc-
tions would be advantageous to for
eign goods. Those who wish to bene-
fit foreign producers are much more
likely to secure that result by con-
tinuing the present enormous pur-
chasing power which comes from our
prosperity that has increased our
imports over II per cent in four
years than from any advantages that
are likely to accrue from general
tariff reduction.
Agriculture
The important place which agri-
culture holds in the economic and
social life of the nation can not be
overestimated. The national govern
ment is justified in putting forth
every effort to make the open coun-
try a desirable place to live. No
condition meets this requirement