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? Constructive Criticism co tee House Revenue Bill. LOANS BETTER THAN TAXES Five Reasons Why Excessive Taxes at the Outset of War Are Disadvantage ous-Great Britain Example Worthy of Emulation-How the Taxes Should Be Apportioned. By EDWIN R. A. SELIGMAN, McVickar Professor of Political Econ omy, Columbia University. On May 23, 1917, the House of Rep resentatives passed an act "to provide revenue to defray war expenses aud for other purposes." In tue original bill as presented by the Committee of Ways and Means, the additional reve nue to be derived was estimated at $1, 610,420,000. The amendment to the bi corne tax, which was tacked on to the bill during the discussion in the House, was expected to yield another $4U,0U0. 000 or $50,000,000. In discussing the House bill, two problems arise: I. How much should be raised by taxation? II. In what manner should this sum be raised? I. How Much Should Be Raised by Taxation? How was the figure of $1.500.000.000 arrived at? The answer is simple. When the Secretary of the Treasury came to estimate the additional war expenses for the year 1017-1S. 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, aud $3.600, 000.000 was to be utilized for the do mestic purposes. Th in king 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 S1.SOO.000. OOO. There are two extreme ihoories, 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 ia that all war expendi tures should be defrayed by taxes Each theory is untenable. It is indeed true that the burdens of "-""?. t-j,T,],! ])0 iiorne by the pres 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. But where the disasters are so great and at the same time so unnecessary, the ^ax-only policy may be declared im practicable. Secretary McAdoo had the right in stinct and highly commendable cour age in deciding that a substantial por tion, at least, of the revenues should be derived from taxation. Put when he hit upon the plan of 50-50 per cent., that is, of ru ?sing 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 are soon to come. Great Britain's Policy. Take Great Britain as an example. During the first year of the war she increased taxes only slightly, ba order to keep Industries going at top notch. During the second year she raised by new taxes only 9 per cent, of her 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 ba the third year it would suffice to raise by taxation $1,250,000, 000. If, in order to be absolutely on the safe side, rt seemed advisable to increase the sum f<* $1,500,000.000, this should, in our .inion, be the maxi mum. In considering the apportionment o? 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 possible over the whole community so as to cause each individual to share in the sacrifices ac cording to his ability to pay and ac cording to his share in the government (2) Taxes on consumption, which are necessarily borne by the community at large, should be imposed as far as pos sible on articles of quasi-luxury rather than on those of necessity. (3) Excises should be imposed as far as possible 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 he imposed as far as possible upon net earnings rather than upon gross re ceipts or capital 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 rate upon the larger incomes. It is essential, however, not to make the income rate so excessive ns to lead to evasion, administrative difficulties, or to the more fundamental objections which have boen urged above. (G) The excess profits which are due to the war constitute the most obvious and reasonable source of revcuue dur ing war times. But the principle upon which these war-profit 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 rafe of GO per cent. This is a sum unheard of in the history of civilized society. It must be remembered that it was only after tho 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 42-?. per cent. It could e.'ts?y be shown that a tax with rates on moderate incomes sui) stantially less thau in Great Britain, ind on the larger incomes about as high, would yield only slightly less than .he $032.000.000 originally estimated in he House bill. It is to be h"!>ed that the Senate will reduce the total rate on the highest in .omos to 34 per cent, or at most to 40 .cr cent, and that at the sanie time il will reduce the rate on the smaller in .omes derived from personal or profes Monal earnings. If the war continues wa shall have to 'coend more and more upon the in tn imposing retroactive taxes. (2) It selects an unjust and unwork .ible criterion for the excess-profits tax (3) Jt proceeds to an unheard-of leight in the income tax. (4) It imposes unwarranted burdens upon the consumption of the commu nity. (;") It is calculated to throw business into confusion by levying taxes on gross receipts instead of upon commodities. (Gi It fails to make a proper use ot stamp taxes. (7) It follows an unscientific system n its fiat rate on imports. (5) It includes a multiplicity of pet ty and unlucrative taxes, the vexatious 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 now taxation should be limited to $1.2.")0,000.000-or at the outset to Sl.i300.000.000. 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 i sound 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 :?10,0G?, and with an analogous lowering of the rates on the higher incomes, so as not to exceed 3-1 per cont. A careful cal culation shows that an income tax of this kind would yield some $150.000, 0OO additional. (4) The tax on whisky and tobacco ought to remain approximately as it is. with a yield of about S230.000.000. 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 the 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 must be more and more heavily drawn upon as the war proceeds. EASY MATTER TO BRIGHTEN UP A NORTH ROOM. Home Art Specialist Suggests Use of Yellow as Probably the Best Have the Curtains of Some Transparent Material. Have you a bugbear of a north room that always eludes your attempts to make it livable? Now that winter ls here. It might be just the place for the children to use ns a playroom, or tbe older ones for quiet study and read ing. "The problem facing one who fur nishes a north roora is that of making tt light, bright and warm," comment ed Miss Araminta Holman, Instructor In home art In the Kansas State Agri cultural college. "Since this room lacks sunshine, yellow is the best color to use. Yellow will cheer and bright en it, and yellow which has a little red to warm lt will be better than a 'cold' color. Orange is the warmest color. Erowns are tones of orange and better to use than gray, black or blue. One should use browns that have more yellow than red. "If the room is a 'den,' the furni ture may be walnut or oak, but if it Is a bedroom, bird's-eye maple or cherry may be used. The curtains should be light, in tones of yellow or orange. The material should be thin and trans parent to admit all the light possible. "Backgrounds should be yellow or orange-warm colors. The woods used should be in harmony with the other furnishings of the room. Dark tones express formality, dignity, repose and seriousness. Light tones express gay ety, youth and informality." Rice Jambalaya. One and a half cupfuls of rice that bas been thoroughly washed, ODe pound of fresh pork, one pound of sausage, one slice of ham, half a seed ed red pepper, one large tomato, one sweet pepper, one large onion, one clove of garlic, three sprigs of parsley, one sprig of thyme, two ground cloves, one crushed bay leaf, one tablespoon ful of butter. Cut pork and hara In very small pieces; the sausage In rather large slices. Mince all of the other ingredients. Carefully brown the onion and the pork In butter. When light brown add the hara and the other seasoning and brown togeth er for five minutes. Then add the sausage and cook five minutes longer, stirring constantly. Add three quarts of hot water or elonr ?n?? -? good Jambalaya. Potatoes Stuffed With Meat Take a number of large potatoes, wash and scrub them thoroughly and bake In a very hot oven. As soon as they are tender cut the top from each and scoop a hole In the center. Previ ous to this take the remains of cold cooked beef, mince finely, season to taste, moisten with gravy and heat. Place a spoonful of meat in each po tato. Replace the tops of the pota toes and bake until a brown color. The scooped-out potato may be either( mashed smoothly with butter and milk or made into rolls by mashing the po tato and adding a little butter, salt and flour. Mix to a paste with a well beaten egg, form into rolls and bake In the oven. Graham Pudding. One cupful of sweet milk, one egg, pinch of salt, one-half cupful sugar, one-half cupful molasses, one level spoonful soda (dissolved), two round ed cupfuls of graham flour, one cupful of currants or raisins floured. Mix in order given, steam three hours. Eat hot with lemon or vinegar sauce. Lemon Sauce-One tablespoonful cornstarch, mixed with two tablespoon fuls of water; stir into one cupful of bolling water, boil till clear, add one cupful of water, one egg, grated rind and juice of one lemon. Beat together, stir rapidly and remove from stove as soon as lt begins to simmer. Pumpkin Pie. This ls an old-fashioned recipe: Cut the pumpkin into large pieces, keeping the skin on, and put lt on to boll. When soft, scoop out the pulp, sift lt and for every heaping teacup ful of pumpkin add one pint of rich milk, two eggs, one and one-half cup fuls of sugar, one-half tablespoonful of ginger and the same of salt. Make a good, ??hort pastry, fill with the mix ture and just before putting Into the oven put a few small pieces of butter over the top and grate over them a lit tle nutmeg. Fruit Dumplings. Use any kind of sauce, apple, berry or pear, etc. Make very sweet. Mix one cupful of flour, one saltspoonful of ?tit, one teaspoonful of cream of tar tar, with water (never milk) enough for stiff batter. Drop In sauce, cover tightly and boil 15 or 20 minutes. Wire Rods. Often In a country bungalow or up In the attic loft we desire to put up curtains, but do not care to spend any extra money for curtain rods. Strings will sag after a time, but an excellent substitute for a rod is a wire stretched tight. The Prudei Life Insuran writes more Life Insul any company in Amei one. They have lowest dividends and free disab of all companies in ti States. E. J. NORRIS FARM WORK AND MACHINERY - i Eloquent Salesmen Often Fall Into Ex aggerations and Make Farm ing Appear as Joke. Much mischief has resulted to farm ing as an occupation from tho exploita tion ot the Idea that machinery will do the whole job and that future agricul ture will be a matter of pressing but tons and setting wheels in motion. The eloquent men who make and sell ma chines often fall into exaggerations that are hurtful and that finally get in to cartoons which depict farming as a more joy ride. It is silly and futile, of course, and it should mislead no one. j The trouble is that too much of it is believed and the thing soaks into the j general consciousness. Good farming is work, hard work T* ..bcu me nineteenth verse of the third chapter of Genesis: "In the sweat of thy face shalt thou eat bread." -Country Gentleman. YIELDS OF SWEET POTATOES Loss of About Eleven Bushels Per Acre in 1916 on Considerably Increased Acreage. Sweet potatoes, on a considerably Increased acreage this year, show a yield of 91.9 bushels, which is about ll bushels 'below last year and about one bushel below the average. How ever, because of Increased acreage, the total production of 67,063,000 bushels is, with the exception of last year's crop of 74,295,000 bushels, the largest ever produced in this country, and much above the average of 51,117,000 bushels. The crop in New Jersey Is 2,300,000 bushels, compared with 3,565,000 bush els produced in 1915. In Virginia the outturn Is 5,070,000 bushels compared with 3,740,000 last year. The crop is strikingly better also In North Carolina, and does not vary greatly from last year in the remain ing states. In quality, sweet potatoes are reported at 87.7, much below the fine quality of 92.2 reported last year and slightly below the average of S8.5. -United States Department of Agri- j culture. Light Saw, Lathe and Shin gle Mills, Engines. Boilers, Supplies and Repairs, Porta ble, Steam and Gasoline En gines, Saw Teeth, Files. Belts and Pipes, WOOD SAWS and SPLITTERS. * ? GINS and PRESS REPAIRS Try LOMBARD AUGUSTA. GA. DIV King's Hew Discovery "CIL!S THE CO'IRH. OMPCr TWp '.'JNRP Bucklen's Arnica Salve ; The Best Salve In The World. I itial ee Co. .ance than .ica except rates with ility clause lie United , Agt. The Hartford Fire Insurance Co. is one hundred and seven (107) years old. Writes more Fire In surance than any fire insurance company in America. You will be perfectly safe with a Hartford Fire Policy. E. J. NORRIS, Agt. ehell PHARMACISTS Large stock of Drugs and Drug Sundries always on hand-fresh from the leading manufacturers. Prescribions ar.mir>o*oixT --Bfj from ige Have you purchased a pair of the celebrated Crossett Oxfords yet? If not, come in and see our new spring stock in all of the pop ular leathers and lasts. We also sell the Selz-Sch wab shoes. Nothing better for the money. DORN & MIMS