» n u u u V U 1 l l I X n VJ ' FALLS CITY NEWS • • P A O » 1. Œljr Italia (£iti| Nruia HOW SHALL WE Publisher KntmS « . •rroaS-.-tan mal', at th» inalafnra ■I Falla City. IVIk Coaaty Orafo«. «P«ar t * Art of Omfraaa of March A 1ST«. N fw j # ffk t . Subar rirtton Rata* Onayaar. *1.00; ai* nnwitba. M casta: t hraa month« 25casta; «Inala W Y . I età. AdrertUlng Ratas ; Display, 15 cants an loch ; Buniness Notioas. 5 cents a H a s . For Sals, Rant, Exchange. W ant and Pay Entertainment No tices. 5 cts. a Una. Card of Thanks 60 cts. Legs Hotlcat, legal rataa. Copy for new ada. audchangesahould be acni t« Tlie News not later than Wednesday. Off telai Vswspapsr ef Ike City sf Falls Citi Issi/ED E very S aturday M orning Headquarters for Candy and Cigar j WEATHERLY CONFECTIONERY. Candies, Tobaccos and Cigars, at L. B. W O N D E R L Y ’S DRINK PUGH’S LOGANBERRY JUICE SOLD EVERYWHERE SOUTHERN PACIFIC COMPANY Passenger Train Schedule Effective Oct. 4,1914 161 wesibocsd am. Salem . . . Dallas. . . Falls City. Bl’kRock. 7;00 8.15 8 .50 164 Bl’k Rock Falls City. Dallas. . . Salem . . . am. 9.30 10.10 11.01 16 | am. 9.45 11.02 11.35 11:55 166 167 pm . 4.00 5.30 6.05 1 I 1T0 pm . pm . 1.05 1.25 2.00 3 .15 6 .10 6 .40 1 7 .45 A. C. P owers . A gent V tu considering the apportionment of the extraordinary burden o f taxca lu a nr times certain actenlldc principles are detlnltely established How Taxaa Sac-Id Ba Apportionad. (1) Tbe burden of twara must be spread as far aa possible over the w hole contmuuity an aa lo cause each individual to share In the sacrlttees ac cording <o his ability lo pay and ac cording to his share lu the Government *2) Taxes ou consumption, which are necessarily home by the community at large, should tie I minuted as far as pos sible on articles o f quasi luxury rather than on those o f necessity. tSi Excises should tie Imposed as far as possible upon coin modi tie* In tbe hands o f the flnul consumer rather F iv « Rh«»on, W h y E x c ,,i v , T a x « « at than upon the articles which serve prl tha Outaat of W a r Ara Disadvantage- martly as raw material for further production. aua— Gr«at Britain Exampla Worthy i4i Taxes upon business should be af Emulation— How tha Taxaa Should tin post'd as far aa possible u | hmi net Ba Apportionad. earnings rather than upon gross re ceipts or capital Invested By E D W IN R. A. S E L IG M A N , (5> Taxes upon Income which will McVIckar Professor o f Political Econ- | necessarily tie severe should lie both omy. Columbia University. On May 23, 1917, the House of Hep differentiated aud graduated. That Is. resentatives passed an act “ to provide I her,» should be a distinction between 1 revenue to defray war expenses aud earned aud unearned Incomes and there for other purposes." In the original should be a higher rate upon the larger bill as presented by tbe Committee of incomes. It Is essential, however, not Ways aud Meaus. tbe addltioual reve to make the Income rate so excessive as to lead to evasion, administrative nue to be derived was estimated at SI. 810.420.000. The auiendmeut to tbe In- 1 difficulties. or to tbe more fundauiwotul come tax. which was tacked ou to the objections which have been urged bill during the discussion lu the House, above. (6) The excess protits w hich are due was expected to yield another S40.000.- I to tbe war constitute the most obvious 000 or $50,000.000. aud reasonable source o f revenue dur I d discussing the House bill, two | ing war times. But the principle upon problems arise which these war profit taxes are laid I. How much ahould be raised by must be equitable in theory and easily taxation? calculable in practice. II. In what manner should this sum Th * Proposed Income Tax. he raised? The additional Income tax as passed I. How Much Should Ba Raisad by 1 by tbe House runs up to a rate o f 00 Taxation? M oney-Saving Subscription Bargain PAY FOR THE WAR? L. WOOD T tltp h oa t SATURDAY. JUNK FALIÜ CITY NEVA’S Yes! We do Job Work Compare our prices with others and see lamples. THE NEWS T he F a l l » C it y N e w s . N orthw est F A Constructive Criticism on Ibo House Revenue Bill. I ''er cent Thl!* *■ * sutu »"h eard o f In the history o f civilized society. It must be remembered that It was only after the first year o f the war that Great Britaiu Increased her Income tax to the maximum o f 34 per cent., and that even now in the fourth year o f the war the Income tax does not exceed 42'a per cent. It could easily be shown that a tax with rates on moderate Incomes sub. stantlally less than In Great Britain, and on the larger incomes about as high, would yield only slightly less than tbe $532.000.000 originally estimated In , the House bill. It Is to be hoped that the Senate will reduce the total rate on tbe highest In comes to 34 per cent, or at most to 40 per cent, and tbat at the same time it will reduce tbe rate on tbe 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 ere not only endangering the future, but are inviting all manner of ‘ difficulties which even Great Britain hxa been able to escape. Conclusion. The House bill contains other funda mental defects which may be summed up as follow s: '1 ) It pursues an erroneous principle In imposing retroactive taxes. (2 ) It selects an unjust and unwork- [ able criterion for the excess-profits tax. (3) It proceeds to an unheard-of height in the income tax. (4 ) It imposes unwarranted burdens upon the consumption o f the commu nity. (5 ) It Is calculated to throw business into confusion by levying taxes on crest receipts instead o f upon commodities. (6 ) It fails to make a proper use of stamp taxes. (7) It follows an unscientific system In its fiat rate on Imports (8 ) I t Includes a multiplicity of pet ty and unlucrattve taxes, tbe vexatious ness of which Is out o f all proportion to the revenue they produce. . 1 yea r $1.00 Total value. LOANS BETTER THAN TAXES How was the" figure o f $1.800.000,000 arrived at? The answer is simple. When the Secretary o f the Treasury came to estimate the additional war expenses for the year 1917-18. he calculated that they would amount t* some fll.OOt).- 000.000, o f 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 ¡Sun between loans aud taxes, be concluded that tbe amount to be raised by taxes was $1.800.000. 000. There are tw o extreme theories, each o f which may be dismissed with scant courtesy. The one Is that all war ex penditures should be defrayed by loans, and tbe other is that all war expendi tures should be defrayed by taxes. Each theory is untenable It is indeed true tbat the burdens of the w ar should be borne by tbe pres ent rather than the future generation: but this does not mean that they should be borne by this year's taxation. Meeting all w ar expenses by taxation makes tbe taxpayers in one or two years bear tbe burden o f benefits tbat 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 o f social Income. Were this absolutely necessary, the ensuing hav oc In the economic life o f tbe communi ty would have to be endured. But where the disasters are so great and at the same time so unnecessary, tbe tax-only policy may be declared im practicable. Secreta ;- McAdoo had the right In stinct and highly commendable cour age in deciding tbat a substantial por tion. at least, o f tbe revenues should be derived from taxation But when be hit upon the plan o f 50-50 per cent., that is, o f raising one-half o f 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 o f a war is a mistake. a r m stea d I year $1.00 l Only $1.50 To Ono Addroso $2.00 ) UNUSUAL CLUB OFFER YOUR YEAR S READING IV« « * n i tv«ry out of our tuhtcrlbtr« 1« l « k l hi.iin .Mat« ftttv*utftgr of tut. •i rtplivii bnrgnl»» II will !»•> gi.inl f«.r but « •l.nrt flint to »tin! your new or rtn tw tl •ubtrrlplltri *t onot If you nrt tt«*w * i u H- tt rM»tr lo tlllitr. vrtilX w ill bt t«ltu<1t<l ou t yttr. Tht N tw t ba. httn ((»rfuittlt I it*? Making t rr tu g n n tu l« with Ibt NOgTHVk M T FAR'IMTF^M wh»r«t>y bollifiuty bt og »rt4 fur « ibort Hint at only BOi tn lt niort ‘btn Ibt lag u lir t»r 1 « t of our l « y * r Comt In tu4 pay up your •ubMirlptlon lor tnoihtr ytnr 50 Cents for Every Subscriber Tht old rtlltb lt NOK fll W KST FARM STKAP « 11 bt biggtrr tn«l b tlltr ib tu tv tr JhU co mi ng . « « .«.it lit «tliior» w ill lU vot« htlr I hm I effort« lu mnkltig thlt pupur tht l * « i In the country Ktch week you’ll it ctlv t * olttu, w tll ttliit l iMue on bttitr i t n u l u g , tnnrk til tut. price». profllt, «due« Mon oltiieiuUlp. home mid a.winl lift Ht gulnr price «lone, f l oo pc» year. Both 1 Toar next month at once. gH TBSOttS That « whal this offer is worth to you. but you muat act Com e T O D A Y ’ THE FALLS CITY NEWS. Falls City, Or. THE NEWS PRINTERY Every Farm er, Business or Professional Man Should Use Printed Stationery. . . Letter Heads, Bill Heads, Statements, Envelopes, Hand Bills, Posters, Pam phlets, Notes, Receipts, Checks, Business Cards, Visiting Cards, Butter W rappers, Etc. : s s s s THE NEWS CAN SUPPLY YOU. THE WORLD’S GREATEST WAR The United States has enteredthe greatest war the world has ever seen. The part we play may determine the future o f Europe both politically and socially. Every American man, woman and child is vitally interested in this war. Some o f us will give our lives, all o f us must make sacrifices. / “ The World’s Greatest War” is the title o f a new 32 page at'as just placed on the market. It is the most comprehensive work of. its kind and is accurate in the smallest details. There are 15 pages o f maps in three colors (15x11) covering minutely the various theatres o f war, and showing all the towns and villages mentioned in the daily dispatches from the front. There are pages o f photographs, many o f them made ex pressly for this book, o f persons, places and things about which so much is said and so little definitely known- Photographs o f zeppe- lins, submarines, submarine chasers, mines, torpedoes, torpedo nets, anti air-craft guns, gas masks, giant guns that shoot 2-ton shelis, German trenches, etc. There is a complete chronological history o f the war to date, and the answers to a thousand and one questions on every phase o f the costliest and bloodiest struggle in the history o f mankind. Tbe fundamental lines on which tbe House bill should be modified are sum med up herewith: (1) The amount o f new taxation should be limited to $1,250,000.000—or at the outset to $1,500,000.000. To do Disadvantages of Excessivs T a x «,. The disadvantages o f excessive taxes more than this would be as unwise as at the outset o f the war are as follows : it is unnecessary. T o do even this 1. Excessive taxes on consumption would be to do more than has ever been done by any civilized Govern w ill cause popular resentment. 2. Excessive taxes on industry will ment in time o f stress. disarrange business, damp enthusiasm (2) Tbe excess profits tax based upon and restrict the spirit o f enterprise at a sound system ought to yield about the very time when the opposite is $500,000,000. needed. (3) Tbe Income-tax schedule ought to 3. Excessive taxes on incomes will de be revised with a lowering o f tbe rates plete the surplus available for invest on earned Incomes below $10,000, and ments and interfere with the placing of with an analogous lowering o f the the enormous loans which will be neces rates on tbe higher Incomes, so as not Possession o f this book will enable anyone to give exact in sary in any event. to exceed 34 per cent. A careful cal formation on subjects on which his friends speak from heresay. 4. Excessive taxes on wealth will culatlon shows tbat an income tax of It is a valuable addition to any library and contains a wealth of cause a serious diminution of the In this kind would yield some $450,000, comes which are at present largely 000 additional. facts on the one subject in which everyone is interested at the drawn upon for the support o f educa (4) The tax on whisky and tobacco present time. tional and philanthropic enterprises. ought to remain approximately as It Is. The book itself is printed on the finest grade o f enameled Moreover, these sources o f support with a yield of about $230,000,000. would be dried up precisely at the time These three taxes, together with tbe paper and is the best that skilled workmanship can produce. when the need would be greatest. stamp tax at even the low rate o f the 5- Excsssiva taxation at tha outset of House bill, and with an Improved au / Falls City Newt one year and Atlas $ 1.30 the wer will reduce the elasticity avail tomobile tax, will yield over $1,250,- able for the increasing demands that 000.000. which la the amount of money ere eoon to come. thought desirable. Great Britain’s Policy. The above program would be in bar. Take Great Britain as an example. mony with an approved acientlflc sys During the first year of the war she tem. It will do away with almost all Japan believes that she can Increased taxes only slightly, in order of the complaints that are being urged accomplish more by keeping her to keep Industries going at top notch. against the present. It will refrain During the second year she raised by from taxing tbe consumption of the soldiers at home making muni new taxes only 9 per cent, o f her war poor. tions than sending them to the expenditures. During the third year It will throw a far heavier burden trenches, Doabtless she is right, she levied by additional taxes (over upon the rich, but will not go to the it" win oi> fA n yw ay its a heap safer. nd above the pre-war level) only extremes o f confiscation, slightly more than 17 per cent, o f her vlate Interference with business aud war expenses. will keep unimpaired the social pro I f we should attempt to do as much ductivity o f tbe community I f the man who lived to be one- It will establish a Just balance be In the first year o f the war as Great hundred and three years old, al Britain did In the third year It would tween loans and taxes and w ill not suffice to raise by taxation *1.250,000,- succumb to the danger o f approaching though it had been his habit to 000. If, lu order to be absolutely on either the tax-only policy or the loan- drink eight cups o f coffee a day, tbe safe side. It seemed advisable to only policy. Above all. It will keep an had been educated in dietetics, he Increase the sum to $1,500,000,000, this undisturbed elastic margin, which - ■t-l-t- H l l h + 4 - H I- l -M -4- H -b 1 H - H -' should, in our opinion, be tbe maxi must be more and more heavily drawn might have died early o f caffein upon as the war proceeds. mum. poisoning. An Invaluable Reference Book for the Home G E T Y O UR ■ S i BUTTER WRAPPERS Send us whatever news you know. We will not publish your name but will publish tbe news. Correspondents wanted in every neighborhood in this section of tne country. P R IN T E D A T T H I S O FFICE. jj f J 1