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About Ashland tidings. (Ashland, Or.) 1876-1919 | View Entire Issue (June 21, 1917)
Thursday. June 21, 1017 HOW SHALL WE PAY FORTHE WAR? A Constructive Criticism on tha House tana Bill, LOANS BETTER THAN TAXES Five Reasons Why Excessive Taxes at the Outset of War Are Disadvantage ousGreat Britain Example Worthy of Emulation How the Taxes Should Be Apportioned. By EDWIN R. A. SELIGMAN, McVickar Professor of Political Econ omy, Columbia University. Oa May 23, 1017, the House of Rep resentatives passed an net "to provldo revenue to defray war expenses aud for other purposes." In the original bill as presented by the Committee of Ways and Means, the additional reve nue to bo derived was estimated at $1, 810,420,000. The amendment to the In come tax, w hich was tacked on to the bill during the discussion lu the House, tftis expected to yield another $40,000, OoO or $ro,ooo,ooo. In discussing the House bill, two problems arise: I. How much should be raised by taxation? , II. Ia what manner should tills sum be raised? I. How Much Should Be Raised by Taxation? now was the figure of $ 1,800,000.000 arrived at? The answer is simple. When the Secretary of the Treasury came to estimate the additional war expenses for the year 1917-18, he calculated that they would amount to some $0,000, 000,000, of which $3,000,000,000 was to be allotted to the allies, and $3,000, 000,000 was to be utilized for the do mestic purposes. Thinking that It would be a fair proposition to divide this latter sum' between loans and taxes, he concluded that the amount to be raised by taxes was $1,800,000, O00. ' There are two extreme theories, each of which may be dismissed with scant courtesy. The one Is that all war ex penditures should be defrayed by loans, and the other Is that all war expendi tures should be defrayed by taxes. Each theory is untenable. It is Indeed true that the burdens of the war should be borne by the pres ent rather than the future generation; but this does not mean that they should be borne by this year's taxation. Meeting all war expenses by taxation makes the taxpayers in one or two years bear the burden of benefits that ought to be distributed at least over a decade within the same generation. In the second place, when expendi tures approach the gigantic sums of present-day warfare, the tax-only pol icy would require more than the total surplus of social income. Were this absolutely necessary, the ensuing hav oc in the economic life of the communi ty would have to be endured. I'.ut where the roasters are so great and at the same time so unnecessary, the tax-only policy may be declared im practicable. Secretary MeAdoo had the right in stinct and highly commendable cour age in deciding that a substantial por tion, nt least, of the revenues should be derived from taxation. I!ut when ho hit upon the plan of RO-IiO per cent., that Is, of raising one-half of all do mestic war expenditures by taxes, the question arises whether he did not go too far. The relative proportion of loans to taxes is after all a purely business proposition. Not to rely to a large ex tent on loans at the outset of a war is a mistake. ' Disadvantages of Excessive Taxes. The disadvantages of excessive taxes at the outset of the war are as follows: 1. Excessive taxes on consumption will cause popular resentment. 2. Excessive taxes on industry will disarrange business, damp enthusiasm and restrict the spirit of enterprise at the very time when the opposite is needed. '3. Excessive taxes on incomes will de plete the surplus available for invest ments and interfere with the placing of the enormous loans which will be neces sary in any event. 4. Excessive taxes on wealth will cause a serious diminution of the in comes which are at present largely drawn upon for the support of educa tional and philanthropic enterprises. Moreover, these sources of support would be dried up precisely at the time when the need would be greatest. 5. Excessive taxation at the outset of the war will reduce the elasticity avail able for the increasing demands that re toon to come. Great Britain's Policy. Take Great Britain as an example. During the first year of the war she Increased taxes- only slightly, In order to keep industries going nt top notch. During the second year she raised by new taxes only 9 per cent, ot ber war expenditures. During the third year she levied by additional taxes (over and above the pre-war level) only slightly more than 17 per cent of her war expenses. If we should attempt to do as much In the first year of the war as Great Britain did In the third year it would suffice to raise by taxation $1,250,000,. 000. If, In order to be absolutely on the safe side, it seemed advisable to Increase the sum to $1,500,000,000, this should, In our opinion, be the maximum. In considering the aimortlonment f the extraordinary burden of taxes in war times certain scientific principles are definitely established: How Taxes Should Be Apportioned. (1) The burden of taxes must be spread as far as possiblo over the whole community so as to cause each individual to share in the sacrifices ac cording to his nullity to pay and ac cording to his share In the Government. (2) Taxes on consumption, which are necessarily home by the community at large, should be Imposed ns far as pos sible on articles of quasl-luxury rather than on those of necessity. (3) Excises should be Imposed as far as possiblo upon commodities In the hands of the final consumer rather than upon the articles which serve pri marily as raw material for further production. (4) Taxes upon business should be imposed as far as lwssible upon ni;t earnings rather than upon gross re ceipts or caiital invested. (5) Taxes upon income which will necessarily be severe should be both differentiated and graduated. That is, there should be a distinction between earned and unearned Incomes and there should be a higher rale upon the larger incomes. It Is essential, however, not to make the Income rate so excessiveX ns to lead to evasion, administrative difficulties, or to the more fundamental objections which above. have been urged (0) The excess profits which are due to the war constitute the most obvious I and reasonable source of revenue dur ing war times. Rut the principle upon which these war-prollt taxes are laid must be equitable in theory and easily calculable in practice. The Proposed Income Tax. The additional income tax as passed by the House runs up to a rate of 00 per cent. This is a sura unheard of in the history of civilized society. It must be remembered that it was only after the first year of the war that Great Britain increased her income tax to the maximum of 34 per cent., and that even now in the fourth year of the war the Income tax does not exceed 42V6 per cent. It could easily be shown that a tax with rates on moderate, Incomes sub stantially less tbanju Great Britain, and on the larger Incomes about as high, would yield only slightly less than the $532,000,000 originally estimated in the House bill. It is to be hoped that the Senate will reduce the total rate on the highest in comes to 34 per cent, or at most to 40 per cent, and that at the same time It will reduce the rate on the smaller in comes derived from personal or profes sional earnings. If the war continues we shall have to depend more and more upon the in come tax. By imposing excessive rates now we are not only endangering the future, but are Inviting all manner of difficulties which even Great Britain has been able to escape. Conclusion. The nonse bill contains other funda mental defects which may be summed up as follows : (1) It pursues an erroneous principle In Imposing retroactive taxes. (2) It selects an unjust and unwork-1 able criterion for the, excess-profits tax. j (3) It proceeds to an unheard-of I height in the income tax. j (4) It Imposes unwarranted burdens : trip means long and difficult trips on upon the consumption of the comr-iu-1 foot and often far removed from hu niry. man habitation. (.") It is calculated to throw business Into confusion by levying taxes o;i gross receipts instead of upon commodities. (01 It fails to make a proper use of ' stamp taxes. (7) It follows an unscientific system In its flat rate on imports. (Si It includes a multiplicity of pet ty and unlncrative taxes, the vexntious ness of which is out of all proportion to the revenue they produce. The fundamental lines on which the House bill should be modified are sum med up herewith: (1) The amount of new taxation should be limited to $1.250.0n0.000-or at the outset to $1,::00,0.000. To do more than this would be as unwise as it Is unnecessary. To do even this would be to do more than has ever been done by any civilized Govern ment in time of stress. (2) The excess-profits tax based upon a ennnd system ought to yield about $500,000,000. (3) The income-tax schedule ought to be revised with a lowering of the rates on earned incomes below $10,000, aud with an analogous lowering of the rates on the higher Incomes, so as ot to exceed 34 per cent. A careful cal culation shows that an income tax of this kind would yield some $430,000, 000 additional. (4) The tax on whisky and tobacco ought to remain approximately as It Is, with a yield of about $230,000,000. These three taxes, together with the stamp tax at even the low rate of the House bill, and with an Improved au tomobile tax, will yield over $1,250,- 000,000, which is the amount of money thought desirable. . The above program would be In har mony with an approved scientific sys tem. It will do away with almost all of the complaints that are being urged against the present. It will refrain from taxing the consumption of the poor. It will throw a far heavier burden upon tbe rich, but will not go to the extremes of confiscation. It will ob viate Interference with business and will keep unimpaired the social pro ductivity of the community. It will establish a Just balance be tween loans and taxes and will not succumb to the danger of approaching either the tax-only policy or the loan only policy. Above all, It will keep an undisturbed elastic margin, which I must be more and more heavily drawn upon as the war proceeds. ' ! Big Free :: Brin I lie Ail Bring your vv ii e-i i 1 loll nwm at- TnMJkoii vdiicy riuu LApCH Sent To Far East Prof. F. C. Reimer of the Southern Oregon Experiment Station will sail for Japan and China next month, in connection with the great work this experiment station is doing with pears. He will go as a representa tive of the United States Department of Agriculture and the state experi ment station of Oregon. These two institutions have made arrangements whereby Professor Reimer will repre sent both Institutions, the Depart- jmenl 01 Asncuiiure anc ine state each bearing half of the expenses of the trip. The collection of varieties and spe cies of pears which Professor Reimer has gathered together at the Southern Oregon Experiment Station is regard- ed by experts as the most complete in the world. He has found in this collection several Chinese species which have proved highly resistant to pear blight, and one species which has proved absolutely immune to this disease. This is the only species of pear that has ever been found any where in the world that has proved immune to this disease. This pear Is also the hardiest in the world, en during the cold winters of parts of Siberia where the mercury congeals in the thermometer every winter. Blight Resistance Stock. Another species of very great im portance occurs in Central China. This species is a very vigorous grower and thrives under the most adverse conditions imaginable. It Is found in swamps with its roots immersed In water, along rock mountain streams, on sterile, dry mountain sides where it endures tne greatest extremes of draught. At the Southern Oregon Experiment Station this species has proved markedly resistant to pear blight and immune to the pear woolly aphis., At the present time these pears are not in the nursery trade, and they can not be purchased anywhere. China has no nurserymen and no dealers from whom this material can be purchased. These types ocur in the remote mountains and wilds of China and it is a hazardous task to collect them. There are no railroads in these sections of China, and the Sturdy Wild Species. Processor Reimer will collect large quantities of these seeds for use in this country. He will also make a thorough systearatlo study of the many wild species of pears of Japan and China. At present these species are badly involved systematically and some of them have never been named by botanists. It has been stated by some explorers that one of the most valuable of these Chinese species also occurs In the mountains of Japan. Professor Reimer will determine this fact. If this should prove to be the case it will be a matter of great im portance, as arrangements can then be made with some of the large Jap anese nurserymen to collect and ship to this country large quantities of seeds and trees of this Important type. Experts from the Department of Agriculture who have examined Pro fessor Reimer's work on pears are very enthusiastic over it, and the de partment is pleased to be able to co operate in this work in China and Japan. Professor F.eimer will be away for about five months. During this time the work of the experiment station will be In charge of A. C. McCormick, who Has been assistant at the experi ment station during the past three years. Prot. Ruch to Teach At University University of Oregon, Eugene Two new instructors in education were elected by the board of regents of the university at the June meet Ing, G. M. Ruch of Ashland, an Ore gon graduate In the class of 1914,, will succeed R. W. Broecker, who has returned to Michigan and expects to teach In the middle west next year. The other instructor is Miss Callie Beck of McMlnnville. Lents MIller-Mowiey mill to be- gin operations soon Eating Room and Tables-Free luuch aYid use our new room r I Illt,A rtalJ 11 Drive Started To Round Up Slackers Portland, June 14. The period of grace for men of military age who failed for any reason t,o register on War Census day is ended. From now on every s'acker is to be hunted down without 'mercy. There will be no more leniency. Governor Withycom.be has receiv ed official instructions from the pro vost marshal general, at Washington, D. C, that the most vigorous enforce ment of the penal clause of the law will be required against all who have not registered. It is announced that the quota of men to be drafted Into the military service from each state will be based on previous census estimates, not on a C( ins. the actual registration figures, which ! small, spotted beetle. This beetle Is in Oregon were slightly lower than:ai)0ut the Bze and' gencrai appear the estimate. Inasmuch as the men ance of a iady bIrd beetle, greonlsh to be called are chosen by lot, tbe I yellow in color, with twelve black failure to register of any man whojspot8 on the wIng coverg. They U8U. should have done so Increases thelftlIy appear in considerable numbers chances against every other man who 1 and ee(J voraciously on the foliage, did his duty and registered. soon ragging the plant so thoroughly For this reason, particularly, and'as to vitalize or even kill it. In also as a patriotic duty, every one j a(ldtlon t0 benniIi practically all gar of the 62,840 men who registered den and truck cropB are BubJect t0 in Oregon is asked to help In the lnJury by. thIs beettoi particularly drive to round up the shirkers. quB8hf cucumberSi corn and egg Already the sheriffs, police officers piant. and precinct registrars have been in-j The BUa, recommendation of ap structed by the adjutant general to!pIylng Bome poson t0 the foage as report all suspicious cases. But now j practlced for m0Bt ieaf-chewing In through the press, and in response 1 8ect pegtg wl not gerve , the me to oinciai oraers irom wasnmgton, all men who have registered are ask ed to aid In this anti-slacker cam paign. Of course, there may be a few who can present legitimate excuses for not having registered. But they will have to present them In court. The time for leniency is passed, and Im prisonment faces those who tried to evade their duty to their country. Tells of War Relief Work Mrs. Seymour Van Cleave, recently returned from London, where she has been engaged in relief work, spoke at the Presbyterian church Monday evening. H. L. Whlted presided over the meeting and Mrs. Elmore sang two patriotic selections. When the war broke out Mrs. Van Cleave and her daughter were in Lon don. They threw themselves into re lief work and also did much to assist Americans to get out of Europe and back to America. Later they did hos pital work and started a knitting fac tory In their London home. This has grown into three large factories glv ing employment to many women and supplying socks for the men at the front. Her daughter Is still in charge of the work. Mrs. Van Cleave came back to America and has told many audiences of the war as she saw it. She is not an orator, but a motherly woman who speaks straight from the heart. She has spent the winter in Honolulu and will remain with her son In New York until ocean travel Is safe for her to rejoin her daughter, Mrs. Seymour Van Cleave and her sister-in-law, Mrs. Hall, were guests the past week at the home of Mrs Emily I. Bingham on Laurel street, while en route from Honolulu to the east. The three ladles were friends in Minneapolis some years ago. Mrs, Van Cleave now lives In New York city and Mrs. Hall in Honolulu. Crater Lake Road Work to Continue Crater Lake park Improvements will continue this season. United States engineers of the first rivers and harbors district at Portland re ceived word from Washington, D. C, Saturday that included in the civil sundry bill, approved June 12, is an item of $50,000 for carrying on the work in the park. It will be used for road grading and it Is expected to be amplo for completing the most of that kind of work. Phone Job orders to the Tiding. , Mrs. A. True Lundy i Hotel Medford. Hotel Aattln Monday T Agents wanted for Ashland and I Grants Pass and tables free. Free water For your convenience the X Eastern Supply Co. have T " I decided to delay moving into their new building until after the big Round up. After July 10th we will move our shoe shop, vulcan izing works, welding and brazing works, bicycle shop and general repair shop, into the big concrete store and warehouse opposite Pub lic library. FRUIT and pARffi ::t:nma:i::atnjjKt:mm:mmtmmmt:::amn:r.J5aj:ttnta Spotted licet le Injures Beans. Young bean plants Just beginning to grow well are boing attacked by a of this beetle unless supplemented by what is known as the trap-crop sys tem. A spray of dust applied to the plant acts as more or less of a repel lent and it Is somewhat difficult to ge the beetle to feed on treated foli age. Therefore in order to avoid their going down below ground and eating off the stems of the plants, It is advisable to leave a few plants here and there, known as a trap crop for the beetles to feed upon, and treat the rest of the field. The most prac tical method is, In cases where beans are to constitute the main crop, to plant here and there through the bean Held a few hills of squash. The beans should then be dusted with a powder consisting of sulphur 85 parts, powdered arsenate of lead IB jbelow tho gen,or grn(le, and of the) parts, and the squash vines should be(3S5 RolnR from the unIvcraltIos aT1(I left untreated. The beetles will then !C00geB 273 were below the senloit collect on tho untreated plants and may be'kllled by mechanical means here. Where no other crop is avail able, ns a trap, a few hills of beans here and there through tho field should be sacrificed to tho cause and the others treated. Generally speak ing, a dust application is preferable to a liquid spray, although tho liquid arsenate of lead spray Is also very ef fective in preventing injury by the beetles where a trap crop is present. A. L. Lovett, Entomology Dept., O. A C. A Sweet Poison for Currant and Gooseberry Mnggot. The fruit of currants and gooseber ries is frequently found infested with a small white maggot. This Is the larvae of a delicate little fly which deposits eggs under the skin of the developing fruit. These flies are present In tho field when the average berry is about the size of a BB shot. They spend a period of several days in the field before beginning egg de position. Should the weather remain settled -without the frequent showers of the paBt, it will be possible to al most entirely prevent the injury by E Have Your Clothes Made at Horns John John the Tailor A Fit or Cleaning" and Pressing KODAK FILMS DEVELOPED SteVenSOn, 177 East Main Street "I Never Sleep" and toilet. Big Eats Cheap Check your parcels for pafe keeping. We cor dially invite you to make free use of this big cleu, light room. Plenty of ladies and gents to wait on you. The Eastern Supply Co. have gone to a big expense to help you during these three big days. Kindly make yourself at home with us. Eastern Supply Co. - - a this maggot by the application of a, sweetened poison bait foi- the adult fly. The following formula Is rec ommended: Sodium arsenlte 1' ounce, syrup 1 quart, water 3 gallons. These materials should be mixed and applied as a fine, misty spray of the consistency of dew, allowing only a few droplets to fall on each of th upper leaves of the bushes. A pint of spray should cover several bushes, as only a few drops are necessary oa any one bush. The adult files will lap up this poison and be killed be fore depositing eggs. Clear, settled! weather is necessary for the success ful use of this poisoned bait. A. L, Love, Entomology Department at O. A. C. j Oregon Schoolboy Soldiers 1,121 Oregon schools have responded no bly to the call to arms. Statistics gathered by J. A. Church ill, state superintendent of public In structlon, show that up to the time) of the closing of schools a total of 1,121 students have enlisted elthetf in the National Guard, the regular army or the navy out of the high schools, colloges and universities of the state. Of this number 736 were from the) high schools and 385 from the unl versifies and colleges. Of the 7381 cnlntr from the hleh schools 438 were! grade. The reports were received from 220 high schools of the state, and of that number 94 reported no enlist mental A glance through the reports indi cates tho preponderance of enlist mepts wore from rural communities, rather than from Industrial centers Indicating that the volunteer enlist ments have drawn most heavily on the young men who could be used foe farm work during the coming season. "The public schools have been put to the test and are found not wont ing," stated Superintendent Churchill in commenting upon the reports re ceived. O.-W. R & N company's crop re port for the Northwest ohows excel lent prospects. FOrt CATARRH and KAY FEVER Dennis Eucalyptus Ointment AT ALL DRUG STORES ,ffl TUBES 25C JARS 60C Tailoring for . Hen and Women for.Clothes No Sals Milli-McCall BId Room Six r