Show NATIONAL TAXES TO TC BE HIGH FOR YEARS By Ma Mark k Sullivan f 5 INo i No doubt nearly goes along comfortably with the Idea idel t that t next year year his taxes will WIn be lower f than they are this ar A gc good od man many persons including some som careful careful careful care care- ful business men are guiding their r affairs on this bask basis They are refraining re rt framing from selling this thIs thIs' year in the hope that thai through lI Jl postponing postponing post t. the sale a y year ar or two they k will wm not have to pay the tIll government k ro o iluga e a portion c ce the tho profit i s they if they sot soil sOlI this Oils year Having just had a rather d depressing depress depress- ing lug conversation with one ono of the two or or three men who l L u more about this than anybody else it Is 13 necessary necessary sary sarr to say that the men who are In positions to have authoritative information Information information mation do not see how the national taxes can can be for a n good fany years to come The appropriations for the year 1923 ave are down to the bare bones Outgo Tremendous The outgo from the national treasury treasury treasury treas treas- ury in 1923 will be There Is no one who sees sow low it can be reduced educed below belo that point for u al almost almost al- al most a generation As a matter of fact t the e running expense of the government has been brought down to a point that is astonishingly astonishingly astonishingly as as- low This can bo be e shown by the briefest analysis of this 3 which must be out next year Of this sum goes out for three purposes namely the interest on the national debt the sinking fund and the veterans veterans veterans vete vete- rans who must be cared caled No one of these items is apt to be less than it now Is in any year in to the near fu fu- ture On the the expense of c caring for fot the veterans is likely rather than d down to up go-up wn Expenses Large Item Itom 1 Granting then that no reduction can bo be made in this let us us turn to the rest o of it The Theother Theother Theother other Is the normal running expense of the government This sum cannot be reduced any anymore anymore more readily than the others The J I tact fact Is that even before the war the normal running expenses of thay the tho government were a anywhere n y y w h her e r e efrom from to 1250 In 1916 the year ear b before f re America entered the war the normal normal nor nor- mal mat running expenses of ot the government government gov gov- ov- ov were Now If you compare the billion and a quarter dollars which it cost to run the government in 1916 with vitha the billion and a half haIt dollars which to the government government govern govern- it Is going to cost run ment In 1923 you will realize that the Increase in cost is not as things go very much In dollars the Increase increase increase In in- a In crease is a quarter of ot a billion bUlion percentage the increase is only 20 per cent In other words the cost of running the government In 1923 has bas been pared down through tho the budget system and by the Intense I effort of those hose who have charge of the government expenditures to a point where it is only 20 per cent greater than man the prewar cost cost Increase Nets 20 Per Cent It is doubtful If any private business business business busi busi- ness or any private family Is doing any any better than this It would be difficult to find any business concern or any household Whose whose expenses expenses for 1923 are only 20 per cent more than they were In 1916 In point of fact th the showing is really better than this because of the which is added to the cost of government for 1923 over what the cost was In InI 1 I 1 1916 16 fully ully Is caused by the Increased volume of business in the postal service service- The net result result re re- re- re sult cult of ot It is that when you realize that the expense of running the government government t gov-t gov gov- has been brought down to toa a 3 point where it is ie less than 20 per percent cent over the prewar cost you are forced d to realize that about as much has ben done as it is possible to do Political attacks that now menace the federal res reserve system n if it successful successful suc sue would destroy the great bulwark bulwark bulwark bul- bul wark of or defense In the United States Stales against panics such as visited this country time and again ag ln before the inauguration of the system it was vas declared by Fred N N. Shepherd executive executive exec exec- manager of th the American Bankers Bankers' association speaking be- be fore the c convention of of the District fo Columbia Bankers' Bankers association In Hot Springs Va The greatest menace to the federal fed fed- eral reserve system is political Mr Shepherd said There are arenow arenow arenow now in congress forty bills which would do anything from making making malting mak malt ing slight amendments to the act to absolutely its Intent and purpose During stress and depression depress depression depres depres- s sion on it seems to be the easy- easy thing to try a short cut and undertake to bring about by legislative enactment that which can be attained only through individual initiative enterprise enterprise enterprise enter enter- prise and good judgment assisted by the healing element of time and politicians are attempting tempting to use the federal eder l reserve for this purpose Old Case ne Recalled The present agitation recalls the history of the second United States bank which upon the inauguration of President President- Jackson stood In the best of favor and was doing good service Jackson questioned its constitutionality constitutionality constitutionality con con- but congressional investigating investigating investigating in in- found nothing that Interference with the banks bank's operations The attacks on the bank Included charges of official official official of of- misconduct and misuse of funds The chief witness against It was a former director of the bank but at that time an insolvent mer mer- chant This man reminds one of certain characters who nave appeared appeared appeared ap ap- ap- ap during thel the 1 ast two or three years In that he seemed to go on the theory that If you throw plenty of mud some Bome of It will wUl stick Before the committee of ot Inquiry he not only was unable to substantiate the charges he made but was proved a perjurer These charges and Investigations however unseated public confidence in Sin the institution thereby impairing impair ing lug one of its greatest assets The bank became a political issue and congressmen did what they do today they they responded to what they conceived con con- conceived calved to be public opinion and re reI refused reused re- re l fused used to the bank I l Problems Continue Since the inauguration of the federal reserve system there has bas not been any such thing as aa a normal norma situation The officials of the system tem tern met et tremendous problems for lor forthe forthe the general welfare wela e and to the best of their ability and they did it as aswell aswell aswell well as it was possible for any set of ot human beings to do No great grest economic change however beneficial benen benefi- cial it may be to the general community community community com com- can take place without adversely adversely adversely ad ad- affecting temporarily certain cor- cor tain groups or Individuals but t their loss is more than compensated for ter forin terIn In tho general gain It is true that charges wrought under the federal reserve have bore more heavily he on some soma than others but the th benefit ben have far outweighed the disadvantages ages and in the long run will bt bs shared b by all Many rany bankers are more or lose responsible for much unjust criticism criticism cism heaped upon the federal reserve reserve re re- serve system The blame was 1 passed passed pass pass- ed to the federal reserve board by some iome bankers who could neither make nor extend certain loans and were not candid and tactful enough I Ito to explain why Some of them wert not even members of the system nUl antI ami could no more rediscount with a s federal fed fed- eral reserve bank balk than with the Bank of England |