Evening star., 1928-06-12

nearly one-third higher than in 1921.
IRON and steel production was more
than twice as large as in the earlier
wear. and the automobile industry has
shown much more rapid growth
/ Various manufacturing industries have
achieved an extraordinary increase in
efhciency, and the average output per
worker is therefore substantially greater.
| The mining industries we're in a
| particularly depressed condition in
| 1921, whereas several of them have
| been very active thus far in the present
| year. Check payments. electric-power
| production. and contract awards for
new building have had, in the early
months Of 1928, monthly average
about twice as large as in the year
| 1921. Railway traffic is about one
! fourth greater. Agricultural prices
/ have been more favorable during the
current year, whereas the reverse was
the case in 1921.
Sterilization and feeling of secur-
ity has been the primary factors in the
great upward swing of American in
dustry and commerce since 1921.
The one and only interest of our
Government is the interest of our peo-
| pie. The two are inseparable. We have
approached the tax question from the
people than necessary efficiently to oper-
ate the Government. The effort has
been to reduce the cost of Government
so as TO make room for tax reduction
That effort has been singularly sue
ceSsful. Since the commencement of
the fiscal year, July /, 1921, We have
had four reductions in taxes.
Tax Rate Reduction.
THE revenue acts of 1921, 1924, 1926
and 1923, when fully operative, will re-
duce taxes by approximately two bill
lions of dollars year, as compared with
what would have been collected If the
act of 1918 had remained in force. It
Is inconceiVable that in such short
space of time the Government could cut
its tax rates to that extent. Yet that
has been done. Millions of individuals
in the lower brackets have been entirely
stricken from the tax rolls. Personal
exemptions for individuals and heads of
families have been greatly increased
Preferential treatment has been given
to earned income. War taxes and nuis-
ance taxes have been repealed. Busi-
ness has been freed of many hampering
and uneconomic restrictions. Instead of
a complicated and burdensome system
of wartime taxation. there has been
evolved a system of few and relatively
light taxes, balanced in such a way as
to give benefits to all classes of tax
payers. The prosperity of today can be
directly attributed In large measure
to the lesSening Of the burden of Fed
eral taxes.
The reduction which has been made
in the national debt since July |. 1921
has contributed much to the ability of
the Government TO lessen taxes. That
reduction at the end of this fiscal year
win amount TO approximately S6,327,-
000.000. The total debt win then be
SIT $50. .000, 900. 1t is one-third paid
The total saving In interest over all that
period will amount approximately to
$3.50 100000 The reductions in the
debt required by law for the same
period total So .296 900 900. BY the end
of this fiscal year we viii actually have
applied to debt reduction $3,03I ,000, 900
more than required by law.
That represents what was saved
from national revenue. These. together
with refunding operations which con-
verted securities bearing high rates Of
interest into securities having lower
rates, represent perpetual saving i'm
interest Of $274 .000, 900 per year. The
tangible results Of constructive economy
in the business OF Government are
clearly indicated by the reductions in
iaxes and public debt
We have been favored with a long
continued era Of prosperity. Year after
year the tide Of good fortune has
steadily risen It seems not yet TO have
reached its food. Measures and policies
that contribute TO continuance Of
good times should be encouraged.
Whatever threatens to interfere there
with should be discouraged Students
Of business trends. experts in economic
conditions, view with alarm the con-
tnued advance In the cost Of Govern
meIlt. The cost Of government In the
nicipal in 1921, was S9,5O0. 600. 600. In
1873 II had increased 70 31i ,124 000, 900.