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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Dec. 4, 1924)
THURSDAY. MORNING, DECEMBER 4, 1324 "f5 G'O'GLIDGE : SHOWS 'OPTIMISTIC OUTLOOK IN T"l THE OREGON STATESMAN, SALEM, OREGON ANNUAL ItWi ' W vL,vv? J A, if ft i V OF PEACE Domestic Problems Are Held Economic; Rigid Econo i mfes Are Advocated ERA IS PREDICTED The present state of the Union, ' Upon which it is customary for the president to report to the congress f under the provisions of the consti- tution. Is such that-it may be re garded with encouragement and satisfaction by every American. Our; country is almost unique in ltd ability to discharge fully and vJ Promptly all its obligations at ' o home and abroad, and provide for all Its inhabitants an increase in .material resources.' in intellectual f Igor and in moral power. The I nation holds a position unsurpass i ed In all former human exper- ience. This does not mean . that i "we do not have any problems. It Is elementary that the increasing breadth of our experience neces- earily Increases i the problems of tour; national life. But it does lnean that if we will, but apply ourselves Industriously and hon estly, we have ample powers with which to meet our problems and 4 provide for their speedy solution. I da not prof ess. that we can se cure an era of perfection in hu man existence, but we can provide 'an era . of peace ; and prosperity, attended with freedom and Jus tice and made more and more sat- isfying . by the j ministrations of the 'charities and humanities of life, j . ' .f-.- -:; ... Our".; domestic problems -are for the most part economic. We have oar enormous debt to. pay. and we are paying It. We have the high cost of government to diminish, I and we are diminishing it. We have a heavy burden of taxation v toreduce, and we are reducing it. i But while remarkable progress ' ' has been made In these directions, - the work Is yet far from accom- pnsnea. we sun owe over zit- 00,000,000. the cost of the na tional government is still about $3,500,000,000,1 and the national t taxes still amount (to about $27 for each one of our inhabitants. . There yet exists this enprmons field for the application of econ- omy. - I -)':-' In ray opinion the government can do more to remedy the eco v nomic Ills of the people -by a sys- r tem of rigid economy in public ex- penditure than can be accomplish ed through any! other action. The i- costs , of our national and local governments combined now stand. er a sum close - to $100 for - each Inhabitant of the land. A littl less than onerthlrd of this, is rep resented, by national expenditure, and a little more than two-thirds hv local expenditure. - It Is an ominous fact, that only the na tlonal government Is reducing its iebt.. ; Others are Increasing theirs at . about $1,000,000,000 each year. The depression that, over took business, the disaster expert enced in agriculture, the lack of employment and .the - terrific shrinkage in all values which our country experienced In a most acute form lit 1920. resulted in no small measure 1 from the prohibi tive taxes which were then levied on all productive effort. The ee-r tablishment of a system of drastic economy in i public expenditure. which has enabled - us to pay off about one-fifth of. the national debt since 1919. and almost cut Jn two the national tax burden since. 1921,. has been one of the main causes in re-establishing a prosperity which has come to In elude within its benefits almost every one of our inhabitants. Econ omy reaches .everywhere. It car Ties a blessing; to everybody. 1 he falacy lot the claim that the costs of government are borne by ;the rich and those who make a direct contribution to the nation al treasury can not be too often exposed. No system has been de vised, I do not think any system could be devised, under, which any person living la this country could escape being affected by the cost of our government. It has a ai rect effect both upon the rate and the purchasing power of wages. It is felt In the price of those crime necessities of existence, food, clothing-fuel and shelter. It 1 would appears to be elementary that the more? the government ex pends .the more . . it must require every producer to. contribute out of his production to the public treasury, and, the less he will have for nis owh Jbenef It, The continu ing costs I 'of Public administration can he met 'In only one way by the work of the people. The high er they become, the more the peo ple must work for the government, j J J urin viirrrn ronii. nciiu oiurrtu mum i 4 CATARRH OR A COLD $ CayiCrt&n Applied InCoitxili x Open Air Paisi jci Eiht TJp. . . , f - - . ..... . illpstant relief no waiting-. Tor clogged nostrils ' open right op; the air passages of roar head clear and you can; breath freely-. : No more hawking, snuffling, blowing, headache dryness, r No straggling for breath at night; yonr cold or catarrh disappears. Get a small; bottle of Ely's Cream Balm from iyour druggist now. Apply a little of this fragrant, an tiseptic, healing cream in yonr nostrils. It f penetrates through every air passage of - the head, soothes the inflamed or swollen mucous membrane and relief bomes Instantly. I - It's Just fine. Don't stay stuffed ;Up with a cold or nasty catarrh. ST, : . i - . " . '' i '.L The less they are, the more the people can work for themselves. . The present estimated margin between public Teceipta and ex penditures for this fiscal year, is very small. Perhaps the most im portant work that this session of the congress can do is to con tinue a policy of economy and, further reduce the cost of govern ment, in order that we may have reduction of taxes for the next fiscal year. Nothing is more like ly, lo produce that public confi dence .which is the forerunner and the mainstay of prosperity, en courage and enlarge business op portunity with ample opportunity fori employment ' at good wages. provide a larger market for agri cultural products, and put our country in a stronger position to be able to meet the world compe tition in trade, than a continuing policy of economy. Of course nec essary costs must be met, proper functions of the government per formed. and .constant, investments fori capital account and reproduc tive effort must he carried on by our various departments. But the people must know that their gov ernment is placing upon them no unnecessary burden. y Tax cm T Everyone desires a reduction of taxes, ' and there is a great pre ponderance of sentiment i in favor of taxation reform. When I ap proved the present tax law, I stat ed publicly that I did so in spite of certain provisions which I be lieved unwise Sand harmful. One of the most glaring of these was the making public of. .the amounts assessed against different income tax payers. -Although that damage has i now been done; I believe its continuation to be detrimental to the i public welfare and bound- to decrease public revenues, so that it ought to be repealed. , Anybody can reduce taxes, but it is not so easy to stand In the gap; and resist the passage of in creasing appropriation hills which would make tax reduction impossi ble. It will be very easy to meas ure j the strength ; of the attach ment to reduced taxation- by the power with which increased ap propriations are resisted. If at the close of the present session the congress has kept within the budget which I propose to present, it will then be possible to have a moderate amount df tax reduction and all the taxi reform that the congress may wish for during the next fiscal year. The country is now feeling1 the direct stimulus which, came from the passage of the: last revenue bill, and under the assurance of a reasonable sys tem i of taxation , there . is every prospect of an era of prosperity of unprecedented proportions. But it would be idle to expect any such results unless business can continue free from excess profits taxation and be accorded a system of surtaxes at; rates which have for their object, not the punish ment of success or the discourage ment of business, but the produc tion of the greatest . amount of revenue from large Incomes. I am Convinced that the larger; incomes of i the country would actually yield more revenue to the govern ment if the basis of taxation, were scientifically - revised downward. Moreover the effect of the present method of this taxation is to in crease-the cost of interest on pro-; ductive enterprise and to Increase the burden of rent, It is alto gether likely that Buch reduction would pnennrasra and stimulate investment that it would firmly establish our country in the eco nomic leadership of the world. I , Waterways Meantime our Internal develop- J jg without oAn 18 saving oh this luncheon ! - - , . i . ...... , ( Hot Asparagus Short Cakes Shadow PoU toes . Radishes Hearts of Lettuce ,' Russian Dressing Hot Chocolate Gingerbread with Whipped Cream I ' -Tea New Ywk AMERICAN ment : should go on. Provision should he made for flood control of such rivers as the Mississippi and the Colorado, and for the op ening up of our inland waterways to commerce. Consideration is due to the project of better naviga tion from the Great Lakes to the Gulf. .Every effort is being made to promote au agreement with Canada to build the St. Lawrence waterway. There are pending, before the congress bills for furth er development of the Mississippi Iiasin, for the taking over of the Cape Cod Canal in accordance with a moral obligation which seems to have been incurred dur ing the war," and for the improve ment of harbors on both the Pa cific and the Atlantic coasts. While this last should be divested of some of its projects and we must proceed slowly, these bills in general have tny approval. Such works are productive of wealth and in the long run tend to a re duction of the tax burden. I 1 : IDeclainatlon i Our country has a well-defined policy of reclamation established under statutory authority. This policy should be continued and made a self-sustaining activity ad ministered in a manner that will meet local requirements and bring our arid lands into a profitable state of cultivation as fast as there is a market for their products. Legislation is pending based on the report of the Fact Finding commission for the proper relief of those needing extension of. time in which to meet their payments on Irrigated land, and. for, addi tional amendments and reforms of our reclamation laws, which are all exceedingly important and should be enacted at once. Agriculture 1 f No more important development has taken place in the last year than the beginning of a restora tion of agriculture to a prosperous condition. We must permit no di vision, of classes in this country, with one occupation striving to secure advantage over another. Each must proceed under open op portunities and with a fair pros pect of economic equality. The government can not successfully insure prosperity or fix prices by legislative fiat. Every business has a risk and its times of depres sion. , It is well known that -in the long run there will be a more even prosperity and a more satis- factory range of prices under the natural working out of economic laws than when the government undertakes the artificial support of markets and industries. Still we can so order our affairs, so protect our own people from for eign competition, so arrange our national finances, so administer our monetary system, so provide for the extension of credits, so im prove methods of distribution, as to. provide a better working ma chinery for the transaction of the business of the nation with the least possible v friction and loss. The government has 'been con stantly increasing its efforts In these directions for the relief and permanent establishment of agri culture on a sound and equal hasis with other business. It is estimated that the value of the crops for this harvest year may reach $13,000,000,000. whicn is an increase of over $3,000,000, 000 in three years. It compares with $7,100,000,000 in 1913, and if va make deduction from the figures of 1924 for the compara- , tlvely decreased value of the dol lar. tne ytem tnis year suu ex ceeds 1913 in purchasing power by over $1,000,000,000, and in this Interval there has been no in crease in the number of farmers ez marked sacrificing WiJALYVf need not be sacri ficeo! for ecbhoihy, as the convincing results of a recent iri vesdgatioh prove. 1 The cost of preparing this luncheon, using olive oil for the dressing, lard for the frying and butter for the shortening, was found to be 18 greater than the same luncheon pre jpared solely with Amaizo. . Send for FREE Amaizo Cook Book . Address: 111 IV. Monroe St., Chicago, IlL :f' Mostly by his own effort the farm- er has decreasea tne cose of pro- , - - . . . . duction. A marked increase In the price of his products and some de- crease in the price of his supplies has brought him about to a parity I with the rest of the nation. The 1 crop area o? this season I, esti- maiea at JU,UUU,UUU acres, Wbicn mnial altitude toward natural mo Is a decline of 3.000.000 acres I "pP0" uh am the railways, at one from last year and 6.000.000 year acres, from .1919. This has been normal and natural application of economic laws, which has plac ed agriculture on a foundation which is undeniably sound and beginning to be satisfactory. . A tWivnuo lii tlw world supply of wheat rettiiltixl In a very larg In- -re:i8e in tht prle- of that commodity. The position of U aterieultural prod ucts Indicates a Ix'tter balanced sup ply, but we can not yet conclude that aKrictilture In recovered from tlhe ffecta of the war period or that it permanently on a prosperous basis. The cattle Industry has not yel re covered and hi Aimr sections hast been snffi-riiiK from dry weather. Every effort mum be made, both by Rovt.ru- uu-iit activity ana by private aReiu-ira, i restore and maintain afcriculture to complete normal relationship with ottier Industrie. It waa on account of past depression. and in spite of present more encour aging conditions, that 1 have assem bled an agricultural conference made up of those who - are representative of this Jtrent Industry -In both Ita opi eratinR and economic sides. Everyone known Unit the great need of the far mer Is market;. The country ia not suffering on .the side of production. Almost , the entire difficulty ils on the side of distribution,. This reaches back of course, to unit costs and dlversifi cation, and many allied subjects, it is exceedingly Intricate, for our domestic and foreign trade, transportation and hanking', and in fact our entire eco nomic system, are closely related to It. li time for action at this session. hope to report to the congress such legislative remedies am the , conference may recommend. An appropriation should le made to defray their neces. sary expenses. 1 , 1 .Muscle Shoals The production of nitrogen for plant food In peace and explosives in 'war is more and more important. It is one of , the chief sustaining elements of life. It is estimated that soil ex haustion each year is represented by about 9.000.000 tons and replenish ment bv 5.4 50,000 tons. The deficit of 3.550.000- tons Is reported to repre. sent the impairment or ns.uvu.uuu acres of farm lands eacn year. To meet . these necessities the gov' ernment has been developing a water power project at Muscle Shoals- to oe equipped to produce nitrogen for ex- niosives ana iertuizer. it is my opin ion that the ttupport of agriculture is the chief nroblem to consider in con nection ; with this property. It could bv.no means sunoly the present needs for nitrocen. but it would help and Its development' would encourage bringing other water powers - into like use. f Several offers have been maue xor the purchase of this property, iroba bty none of them represent final terms, Much costly experimentation is necew tarv to oroduce commercial nitrogen. Vive that reason it is a field better suited to nrivate enterprise than to government operation. 1 should favor a sale of this property, or long-time lease, ..under rigid guaranties or com mercial nitrogen production at reason able nriees for agricultural use. There would be a surplus of power for many nossibllitv of its appli cation to a developing manufacture of niri-ruren. It mav be round advantag eous to dispose of the right to surplus imwer separately with such reserva tions as will allow its gradual with drawal and application to nitrogen manufacture. A subcommittee, of the committees on agriculture should in- uAirato this rieid ana negotiate who prospective purcnasers. it no n tasreona offer be made, the develop ment should continue and -the plant sliould be dedicated primarily -to the prouueuon or umieriu v zatton of tne sou. ... Hallways The railways during the past year have made still further progress in recuperation from the war, with large ..in. in efficiency and ability expe- itinuciv in handle the traffic of the ..nrrv We have now passed through several periods of peak traffic! without the car shortages which , so frequently In the past have brought havoc to our .OT-i.tiitur n ml industries. The con dition of many of our great freight terminals la still one of difficulty and -A..it in imiuln( large costs on the public, for inward-bound freight, "and n ihA railways for outward . bound freight. Owing to the growth of our large cities and the great increase In the volume or .traiiic. parucurijr . m economy CO (Chiccso Jib m quality perishables, the problem la not only d,f,PU,t oiutian. but in tome case. wnouy solvable by railway action alone. ' ..i", Z "Iff"1?4 1 fi? wfo TTP. 'uinf'IZ; consolidation of our railways Into i"r?ym . T?e Prtnc,P"J of ?v- now tiirK im 7: ',JTtJ& 7 justment. Competition must be pre served as a stimulus to service: hut this will exist nml Kin H lnnnuul under enla-grd systems. Consequent ly i ne consolidation of the railways into larger units for th nnrnnne f securing i the substantial values to the public Which Will come (ram lnrr operation has been the logical conclu- ,IU i congress in Its previous enact ments, and is also su d nor t ml hv tha best opinion in the rauntrr. Sueh consolidation will assure not only a greater element of competition as to service, but It will afford economy in operation, greater stability in railway earnings, and more economical financ ing, it opens large possibilities . of oeiter equalization of rstes between umprPHi classes or trairu- so as to rnieve undue burdens uoon nirrloultiir al products and raw materials general ly, wnicii are now not oossible with out ruin to small units owing to trie lack of diversity of traffic. , It would !so tend to equalize earnings In such tasnion as to reduce the Importance or section, 15A. at which criticism often misapplied, has. been directed. A smaller number of units would offer less difficulties - in labor adjustments and would contribute much to the so lution of terminal difficulties, . - The consolidations need to be car rled out with due regard to public In terest and to the rights and establish ed life of various communities in our country.. It does not seem to me nec essary that we endeavor to anticipate any rinal plan or adbere to any artl- neini and unchangeable project which snail stipulate a fixed number of sys tems, but rather we ought to approach the problem with such a latitude of action-that it-can be worked out step by step In accordance with a compre hensive consideration of public inter- et. Whether the number of ultimate systems shall be more or less seems to me can an only be determined by time ual experience In the develop - and act ment of such consolidations. - Those portions of the present law contemplating consolidations are not sufficiently effective In producing ex peditious action and need amplification of the authority of the Interstate Com merce Commission, particularly In af fording a period for voluntary propos als to the commission and in supplying government pressure to secure action after the expiration of such a period. There nre other proposals . uercxi congress for amending the transporta- tjjn acts. One of these contemplates ft revision of tne method oi valuation for rate making purposes to be fol lowed by a renewed valuation of the railways. The , valuations instituted by the interstate commerce commission 10 years ago have not yet been com pleted. They have cost the govern ment an enormous sum, and they have Imposed great expenditure upon the railways, most of which has in effect j COme out of the public in increase"!! rates. This work should not be aban doned 'or supplanted until tts results are known and .can oe consiaerea. . Another matter before congress is legislation affecting the labor sections of the transportation act. Much criti cism has been directed at the workings of this section and experience nas shown that some useful amendment could be made to these provisions. It would be helpful If a plan couia be adopted which, while retaining the practice of systematic collective bar gaining with conciliation and volun tary arbitration of labor differeces, could also provide simplicity in rela tions and. more direct local - responsi bility of-employees and managers. But afech.ieiriaiation will not. meet toe. re quirements of the situation unless it recognizes tne principle mat tne puo llc has a righti to the uninterrupted service of transportation, and therefore Then YOU a right to be heard when there I dan-' ger that the nation may suffer great Injury through the interruption of op erations because of labor disputes. If these elements are not comprehended In proposed legislation, it would be better to gain further experience with tne present organization ror dealing with these, questions liefore undertak ing a change. Shipping Board The form of the organization of the shipping board was based originally on its functions as a semijudlcial body In regulation or rates. Uuring the war it wai loaded with enormous ad ministrative duties. It has been dem onstrated. . time and again that this form of organization - results in inde cision, division of opinion and admin istrative luniiions, which make a wholly inadequate foundation for the conduct of a great business enterprise. The first principle 'In securing the ol- jectlve set out by congress in building up thei American merchant marine up on the great trade routes and subse quently disposing of it into private op eration can not proceed with effective ness until the entire functions or tne board are reorganized. The lmmed late requirement Is to transfer into the Emergency Fleet Corporation the whole responsibility of operation of the fleet and other property, leaving to the shinoinK board oley,the duty of determining certain major policies u-hli-h reouire deliberative action. . The procedure under section 2S of the merchant marine act has created nreat difficulty and threatened rrlction during the past 12 months. Its at tempted application developed not only great opposition from exporters, par ticularly as to burdens that may be im nosed unon agricultural products, but also great anxiety in the different seaports .as to , the effect upon their relative rate structures. This trouole will certainly recur if action is at tempted under this section. It la uncer tain in some of Its terms and of great difficulty in Interpretation. . It is my : belief that action under this section should be suspended until congress can reconsider the entire question In the light of the experience that has been developed since its en actment. : . ;.'. National Elections Nothing is so fundamental to the In- ernment as honesty In all that relates repuuiican rorm oikov 1 to the conduct of elections, 1 amof J the opinion that " tlie - ' hatioruil ' law governing the choice f members of tlie congress snouia am rxinu w include appropriate reprvfniauon tu resnen-tlve parties at the ballot box and equality of representation on the various registration Doarus, wner ver they exist. ' The judiciary J The docket of the supreme court Is becoming congested. At the opening term last year It had 592 cases, while this year It nad t cases. juhim-c long delayed Is justice refused. Un less the court be given power by pre liminary ana summary consideration to determine the importance of cases, and by disposing of those which are not of public moment reserve its time for the more extended consideration of the remainder, the congestion of the docket is likely to increase. It is also desirable that the supreme court should have power to Improve and re form procedure in suits at law in the federal courts through the adoption of appropriate rules. . The Judiciary com mittee of the senate has reported fav orably upon two bills providing for these reforms which should have the immediate favorable consideration of the congress. - ' 'f - I further recommend that provision be made for the appointment of a com mission, to consist of two or three members of the . federal Judiciary and as many members of the bar, to ex amine the present criminal code of procedure and recommend to the con gress measures which may reform and expedite court procedure. In the ad ministration and enforcement, of our criminal laws. , . . - f . Prison Reform , Ttoniltnar before COnBTeSS is A Dill which has already passed one house providing for a reformatory to wnicn could be committed first offenders and merica GoMforts fpHE average American home has more comforts ancL 1 conveniences than the palaces of Europe. Home for home, the American household has ja well-kept look, an atmosphere of prosperity and contentment you cannot find in the homes of any other country in the world. In foreign lands, the modernized dwellmg, as we know it, is found only in limited numbers and then only in the larger cities. In America, even in remote rural districts , you find pianos, vacuum cleaners, washing machines, up-to-date heating systems, telephones and numberless appliances that go, far to make life easier, happier and more worth while. You may not realize it, but Amirica's high standard of home life is due largely to advertising. For the develop ment of advertising is distinctively American. It has taken its place as a leading force in bringing together the. interests and wants of a great, united pebple. And a large share of the credit for this developmenl : is due the news papers.. f. '" Stop and think how many of the appliances you use, the foods you eat, the clothes you wear, and other articles entering Jhto your e very-day life, were popularized by newspaper advertising. j s vou will realize what played and is playing in your OWE IT TO YOURSELFTO READ THE ADVERTISE MENTS. THEY MEAN A LOT TO YOU. yotmgmen for the purpose of segre- gating them from contact with - hard ened criminals and providing them with special training, in order to re establish in them the power to pursue a law-abiding exlstenice in the social and economic life of the nation. This is a matter of so murh Importance lut towafrant the early attention of tlie present essioni rtinner provision should ajUo be made, for a like reason, for a separate reformatory for women. - National Police Bureau Representatives of khe International Tol!ee Conference , will bring to the attention of the congress a proposal for the establishment .of a national police bureau. Such action would pro vide a central point for - gathering. eomDiline. and latetl distributing to local ponce authorities mucn inrorma- tlon which would 1 helpful In the today's ed one of selected one of Ki o vt ii or mother, sister, wife or daughter, IE I I l Bath i - Robes In many patterns and , colors). We have put a .few in our north win . dow . so that , you, may see Just . how pretty . and comfy they look.' $ )) 9 8 iii Home a vital part advertising daily lite. prevention and detection of crime. 1 believe this bureau is needed, and I recommend lavorable consideration ftf this, proposal. , .". District of Columbia Welfare The welfare work of the District of Columbia Is. administered by several different lioards dealing with chari ties, and various correctional efforts, it would be an Improvement If this work' were consolidated and placed under the direction of a single com mission. . French Spoliation Claim - Inuring the last session of t lie con gress legislation was introduced look ing, to -the payment of the remaining claims generally referred to as th French spoliation claims. The con- ( Continued on paf 10) l tmas ions suggestion the more we have the more useful gifts i : r .1 v. , hp has id Ghri - wt Gift Is!