Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Dec. 1, 1919)
4 V v '?tW! i "-$14 The Commoner '. 10 VOL. 19. NO. 12 r Ik v.- Br. 1 President Wilson's Annual Message 3?.,?: Following to tha tost of Prosldont Wilson's message to Congress, which was read soparate ly to tho Houho und tho Senato December 2 : ' To tho Sonato and House of Representa tives: I sincerely regrot I cannot be pronont at tno opening of this session of tho congress. I am thus prevented from presenting in as direct a way as I could wish tho many questions that are prosslng for solution nt this time. Happily, I have tho advantago of tho advice of tho heads of tho several oxecutivo departments who havo lcopt in closo touch with affairs in their detail, and whoso thoughtful recommendations I earnestly second. In tho matter of the railroads and the read justment of their affairs, growing out of federal control, I shall talco tho liberty nt a later day of addressing you. I hope that congress will bring to a conclu sion at this session legislation looking to tho establishment of a budget system. That there should bo ono single authority responsible for tho making of all appropriations, and that ap propriations should be mado not independently of oach other, but with roferonce to one single comprehensive plan of expenditure properly re lated to tho nation's income, there can be no doubt. I believe tho burden of preparing ' tho budget must, in tho nature of tho case, if the work is to bo properly dono and responsi bility concentrated instead of divided, rest upon the executive. Tho budget so propared should bo submitted to and approved or amended by a single committee of each house of congress, and no singlo appropriation should be mado by tho congress, except such as may have been included in tho budget propared by tho execu tive or added by tho particular committoo of congress charged with tho budget legislation. Another and not less important aspect of tho problem is tho ascertainment of the economy and efllcloncy with which tho moneys appro prlated are expended. Under oxisting law tho only audit is for tho purpose of ascertaining whother expenditures havo boon lawfully mado within tho appropriations. No one Is author ized or equipped to ascertain whother the money has boon spont wisely, economically and ef fectively. Tho auditors should bo highly trained officials with permanent tenure in tho treasury department, free of obligation to or motives of consideration for this or any subsequent administration, and authorized and ompowored to oxaminq into and iuako report upon tho methods employod and tho results obtained by tho- executive departments of tho government. Thoir reports should, bo made to tho congress and to the secretury of tho treasury. FUTURE TAXATION PROBLEM I trust that tho congress will give its im mediate consideration to the problem of future taxation. Simplification of tho income and prof its taxes has become an immcdlato necessity. Th030 taxes performed indepensable service during tho war. They must, however, bo sim plified, not only to save tho taxpayer incon venience and' oxpense, but in order that his liability may bo made cortain and definite With reference to tho dotaila of tho revenue law, the secret 7 ry of tho treasury and the commissioner of internal revenue will lay be fore you for your consideration certain amend ments necessary or desirable in connection with the administration of the law recommenda tions which have my approval and support It ,8,?f4i10 wtmost importance that in .dealinir with this matter tho presont law should not ho disturbod so far as regards taxes for tho vol? lW20, Payable in the calendar year 1921. Tho congress might well onnsM or whether the higher rates of income and profits taxes can in peace times be effectively productive of revenue, and whether they may not, on tho contrary, bo destructive of busi ness activity and productive of waste anr S efllcloncy. There is a point at wh?ch in ? times high rates of income and profits ?axe1 discourage energy, remove the incentive to new enterprise encourage extravagant einonJmSI and produce industrial stagntk with con sequent unemployment and other attendant Tho problem is not an oasv ono a f,i mental change has taken place wtth rferenC0" to the position of America in tlio world's af- fa?rs. Tho prejudico and passions ongendored by decades of controversy between two schools of political and economic thought the one be lievers in protection of American industries, the other beliovors in tariff for revenue only must be subordinated to the singlo consid eration of tho public interest in tho light of utterly changed conditions. Before tho war America was heavily the debtor of tho. rest of tho world, and tho Interest payments she had to make to foreign countries on American se curities held abroad, the expenditures of Ameri can travellers abroad and the ocean freight charges sho had to pay to others, about bal anced tho value of her pro-war favorable bal ance of trade. During tho war America's ox ports havo been greatly stimulated and in crpased prices havo Increased their value. On the other hand, sho has purchased a large proportion of tho Amorican securities previ ously held abroad, has loaned some $9,000,000, 000 to foreign governments and has built her own ships. Our favorable balance of trade has thus been greatly increased and Europe has been deprived of the means of meeting it here tofore oxisting. - Europe can have only -three ways of meet ing the favorable balance of trade in peace times by imports into this country of gold or of goods or by establishing new credits. Europe is in no position at tho present time to ship gold to us, nor could wo contemplate largo further imports of gold into this country with out concern. The time has nearly passed for International governmental loans, and it will take time to develop in this country a market for foreign securities. Anything, therefore, which would tend to prevent foreign countries from settling for our exports by shipments of goods into this country could only have the effect of preventing them from paying for our exports, and therefore of preventing tho ex ports from being mado. The productivity of the country, greatly stimulated by the war must find an outlet by oxports to foroign coun r5 an any measures taken to prevent im ports will Inevitably curtail exports, force cur tailment of production, load the banking ma- S2SS7 fith? C0Untry with credits to cary unsold products and produce industrial stagna tion and unemployment. If wo want to sell we must be prepared to buy. Whalfver, ?her " fore, may havo been our views during the period of growth of American busines! con cerning tariff legislation, we must now adjust our own economic life to a changed condition growing out of the fact that American business sxnrtf dwSst Amerlca is the ISOLATION ENDED BY WARV . No policy of isolation will satisfy tho crow ing needs and opportunities for America Tho . provincial standards and policies of the Jst XJJui hw held Ameran business as if ? a strait jacket, must yield and give way to tho w? UrSS? ih n"W day wo live, a clay full of hope and nromisp fnr American business if we will but tako advantage oMho opportunities that are ours forTthoask! The recent war has ended our isolation ami TUnZ? Sf ? grat duty and reSonsibimyd Tlio United States must share the exnanrtin world markets. The United States des;?es fnr ?fS self only equal opportunity with the1 other imZ tions of the world, and through the process of friendly co-operation and fair romniSm m legitimate interests of the nation'cerned may be successfully and equitably adjusted There are other matters of taJortSS' n on which I urged action at he last sess oPn of congress, which are still pressing f of solu " lZ'n J am B,uro U Is not Necessary f0r me recognition ana rXf to our LldhS?"0? 0f do no bettor than to quoo from mt .',,,, an ago urging this vory action- y aBt mes" "fd t!f Places tor'wZ? SSf arefiK the daily work of tho countrv i ,u done by developing and maiufalning X adequate scale tho admirSii B "Pon an created by the Department TLXZ?? ing men seeking work- and t ?JL '? PHC" done, in at IcastU "eVfiehl? by J nnlntert f ?rwJ"OI7 of tho Z , Ur. der;a7LTMv5.&y which r; or n in the Wthito ffieveCd Sfi countrv whini, !. -. v,eoped reel. H?.tt4 ready 'prepared, or can' reSi " S,7 cultivation, and also 2 tt,a"y , ?"' & or norrflnfa,i . " many of Mln .. or, f zrnrr re.us which ue wiM,r"Vul.0Tr Vii I .umo- abates; and I nnpo ru iao miu liberty or recommending verv ,?.mof? le i i'wih snaii receive tho im, rmy that Mil stantial support of the ooniTn In the mattor .,D,YE. INDUSTRY call your attention to the Jff If at on' beg (0 in my last message urginVltfqhM18 Con erence to the establish la"0n ref-1 ViSfi11? nf ? !n AmerIca.W, Clm federation hni i t"88 l? which snerh, facture of dyesuf d?eSt do ?e ' complete dependence upon ri0Chem!cals- Our fore tho wni. nl .pon. Ger,nan suddIIp. kT y-JHBSBl& ftSrtwS" on' the on7 hand fVW '-i and poisonous gases o, '""tt""!0 S" has given tho industry an oXSLSon1Wr' gramnir'o'f inTernXnTSmaJtnn,,l nevertheless ,bo a noiZJ ?,!," monl' " wl. make' oertai f ttl1".!"! li many BtronK and wbII..' ?in M.a oil The- German chemical todust,;uhThKi capable of exeVcisingaVeturocToS: ly insidious and dangerous kind" pecuur", ?UJ,!n? the Wa.r farmer Performed a vital and willing service to the nation. By materS iIifS?Alns P6 pr?duction his land ho' supplied Amorica and the Allies with tho In" creased amounts of food necessary to keep their ; immense armies Jn tho field. He indlspeas ably helped to win the war pf iw i scarcely less need, sl increasing the production in food and tho necessaries of life. I ask the congress to consider means of encouraging ef fort along these lines. Tho importance of do ing everything possiblo to promote production along economical lines, to improve marketing and to make rural life more attractive and healthful, is obvious. I would urge approval of the plans already proposed to the congress by the secrotary of agriculture, to secure the essential facts re quired for the propor study of this question, through the proposed enlarged programmes for farm management studies and crop estimates. I would urge also, the continuance of federal participation in the building of good roads, un der the terms of existing law and under the direction of present agencies; the need of further action on the part of the slates and tho federal government to preserve and develop our forest resources, especially through the practice of better forestry mothods on privato hnldinca nrwl thn oYrnnalftn nf llift nilhllclV- owned forests; better support for country. scnoois and the more definite direction 01 their courses of study along lines related to rural problems; and fuller provision for sani tation in rural districts and tho building up of needed hospital and medical facilities in these localities Perhaps tho way might bo cleared, for many of these desirable reforms by a fresh comprehensive survey made of rural conditions by a conference composed of rep resentatives of the farmers and of the agricul tural agencies responsible for leadership. UNREST IN BODY POLITIC "I would call your attention to the wide spread condition of political restlessness m our "body politic. Tho causes of this unrest, while various and complicated, are super ficial rather than deep seated. Broadly tney arise from, or are connected with, the failure on the part of our government to arrive spew ily at' a' just and permanent peace permmins return to normal conditions, from the trans fusion of radical theories from seetiiiDB European centres pending such delay from nean less profiteering resulting in the increase tho cost of living, and lastly from tho macww tions of passionate and malevolent ag jww With tho return to normal conditions, tins rest will rapidly disappear. In the meani it does much evil. ,, lfIl (Ms It- seems to mo that in dealing wl J iVf situation congress should not be impai .en drastic, but should seek rather to rcoun. causes. It Bhould endeavor to bring our Jrk f'fk MSf ,v V g4to,N3itoT..W(fli I jhitJ!fc.-.-