Historical Newspapers of South Carolina

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TBE SUMTER WA'fCHMAX, Est a CONSOLIDATED AUG. 2,1 IM NEWS 0F WASHINGTON STATESMEN Correspondent Claims | Republicans Help less to "Relieve Situ ation By WAULACE BASSFORP. (Special News Correspondent) Washington, Jan. 20.?Speaker Gillett appears to have at last given up the belief that the Re publican ^party can produce pros perity by the mere fact of its being in power. He has written a dismal.; wail to his constituents up, at! Springfield. Mass. After pjfcmising ? them a new Federal building, which j appears to have been promised for i some years, he uses these truthful j but gloomy sentences: . "I receive 1 many expressions of disappoint ment with the work of Congress. ? This is quite natural. Some of our j legislation, notably the tax bill, has! excited great disapproval. I do not pretend that I have supported | all that we have done. On the con- ! trary. some- of the measures have j passed against my energetic op- j position The industrial dep: ?ssion j intensifies the criticism of:. Con- t Kress. Men suffering from idleness or ruin look to us to save them; j nothing can bring prosperity again j except self-denying economy and \ incessant, productive work." . With j those frarfk admissions going over j the country in cold 'ype from the 1 man who heads ih> prescht Con gress, it is difficult to see how the Republicans can ask for re-election next fall at 'the hands. of those "suffering from idleness* or ruin," which the Speaker admits hier party is helpless to relieve. f Xo one in Washington who ob serves events has any doubt that the Associated Pres.? report as to Harding's ar?tude on the naming toi a "dirt farmer" on the Federal Reserve Board was correct. *Un-. questionably, in their . view, the 1 ?resident'went up in the air. when the gr.iup of progressive senators made 'the request but by the ne:<z day be saw the poor politics,-in his curt refusal, and' then insy.roi ?i statement to the effect that :: was ail ,a mistake that lie~had been ?>p Jwsed. To those wTiO htre gro?vn used to the stiff back-bone ol Cleveland. RooscVelt and Wilson, this rapid caving-in ? tendency of the president is not conducive to confidence in the strength of the executive. From time out of mind we have admired the man who was reputed to carry tbe "fist of steel in the silken "glove."' but no one loves the president whose fist of .mush is concealed in a giove of the same. ? White Senator -Pcnrose carefully j provided, in his will that there) should be no inventory or account- J ing made- of his estate, he over- j looked an item of $226.000 in ca-m which he had in a safe deposit box in Washington, partly in ten-thou sand dollar bills, mere loose chance saved from his salary, r Everyone recalls that at the", time of the Chicago convention of 1920 he was wry ill. Xow his physician comes forward and tells how the big boss was uhcon&cious for hours, then came to himself'and asked what was going on at the convention. Cpon his secretary informing him I that the convention was deadlock- j ed. he replied: "Tell 'em to throw} if to Harding"."' And yet there are j millions of patriotic men and wo-1 men wbV grew up in the Republi- j Can party, some of whom were for j General Wood, some for Bowden or j Senator Johnson, who have fondly imagined that they were having something to do with the nomina tion of a candidate when they went t<? the primaries and cast their bal- j lots. Cnder the boss-ridden party | of today they have no more to do i with selecting the candidate than if they lived in "New Guinea. Ben- { rose, big boss of tbe lesser bosses! j just told them what to do. and he. : in turn, was told what was wanted by the Mcllon-Dupont outfit. Once j in a while the/people still rise up in their might and do something.j proving htdt they still have the j power?for instance, the dry laws . ?but power unused is like the! .hoe that rust* in the shed?-it pro- j duevs no crop. The republicans are having | trouble raising campaign funds.' The business man who has no | money to put into his own business I is a poor subject for th? campaign solicitor. There is little relief from the necessarily high war' taxes, "which the republicans all i voted for but which they are un able, for some reason, to lessen ap preciably. Freight rates remain very high and trade languishes, while Congress fritters away its time trying to enact an anti lynching bill to coddle the negro voter, though the best constitu tional lawyers on the Republican i side admit that the Supreme Court j will make short work of the law j when it finally gets to them, for it j is absolutely subversiv? of that] provision of the organic law which j gives the police powers to the jgt&tes. The men who have furnish - j ed campaign funds in the past are , getting poor return for their money and are sitting as judges of a Con- ; gress that satisfies nobody. Its; failures can not be bidden, for they j are visible in stunted industry. low j prices for farm products and mil blishcd April, 1850. 881. FARMERS' CONFERENCE HAND PICKED J. Scottowe Wanna maker-Charges that There is a Cut and Dried Program 'Washington, Jan. 24.?The Na tional Agricultural Conference v.-hich was opened here yesterday with an address by President Harding got down to work on de tails this afternoon when the com mittees* appointed at the first ses 'siori held their first meetings. The morning was given over to an open session marked by addresses by Eu gene Meyer. Jr., managing direc tor of the War Finance Corpora tion: G. F. Warren, of Ithaca, N. Y., who has'just completed a study of European conditions: Wesley C. Mitchell, New York economist, and Herbert Myrick. of Spring field, Mass.. editor of Farm and Home. Another open session is to be held tomorrow morning. The first signs of differences in the conference appeared after the defeat today of a motion by J. S. War.namaker. of South Carolina, for appointment of a committee on resolutions. This motion was defeated on the ground that the committees already appointed were expected to consider resolutions. Mr. Wannamaker issued a form al statement later, attacking the conference and declaring "about ail the farmers and farm leaders have to do in. this conference is to shake hands with the president, meet some'official dignitaries and partake of a little ice cream and cake and then go home." "Selection of committees has been made in such a manner," Mr. Wannamaker said, "as to sug gest that those responsible for such service are either totally ig norant of the qualifications of the delegates or have lent themselves to a cut and dried and well backed scheme to prevent the forward loQking farmer representatives from bringing any good whatever from out of the conference." He was "confident," he con tinued, that it was "the purpose of those responsible for the con ference to destroy the farm bloc." "The president's address in opening the conference." he con tinued Vindicated, very clearly that such was the purpose." The committee meetings this afternoon were hefd behind closed doors. It . was expected they would be occupied chiefly today with organization, and. perhaps, preliminary surveys of the work as signed to them. Twelve t major committees and their chairmen were appointed yesterday, and these were expected to; divide themselves into a number fo subcommittees to wprk out details of their various assignments. ' Probably one question In which the delegates are as a whole in terested is that ot commodity financing. One member of the committee on agricultural credit and insurance, which has this sub ject under consideration, suggested a plan . probably could be worked out to.provide for commodity loans running from six months to three years. His proposition would pro vide for the grading and inspection of commodities, endorsement of commodity paper presented by farmers by their local banks and the handling of this paper through the Federal P'arm Loan .-Bank sys tem, which would either discount it through the federal reserve sys tem or issue debentures against the loans in the form of certificates of indebtedness to be sold on the open market. Influenza Epidemc Threatened New York Health Officers Taking Steps to Protect Public New York. Jan. 25.?City health Officials are taking steps to prevent the threatened influenza and pneu monia epidemic which is incipient. lions unemployed. And the soldier rote is up in arms. On top of all the other troubles, the Republican party left a very bad taste in the country's mouth by seating Newberry. This man was indicted and convicted on a felonious charge and escaped be cause the Supreme Court found that the law specified "election," while the bribery charged was committed in a "primary election." He escaped by the saving grtlce of one word! What a splendid vin dication' His family should adopt a coat of arms bearing a ten dollar bill rampant, standing triumphant over the remains of a tin lizzie passant, with the motto in letters of gold: "By one word." Debs se?-ms to be a hero?at least, he is in Terre Haute, where the socialist mayor kissed him twice. .Most folks who have seen 'Gene would decline to kiss him m??re than one.-. By the way. what is happening to his party? En. the recent election in New York City it almost disappeared- but that is tin- common history <?! new parties; if "they can not win in the second or third attempt, they fade away. They .-MM no? live on hope alone. ate Be Just and Fear ! THE PEOPLE I GETTING WISE i TO LODGISM I Gov. Cox' Brings In- j dictment A g a i n s't j j Republican Party! For Treachery t o j the Public Dayton. Ohio. Jan. 2;".?.Tamos , ! M. Cox. Democratic candidate for j president in 1920. and former Gov ernor of Ohio, tonight told Demo ! crats gathered here at a Jackson j j Day banquet, that their party I stands just where it did "when the j votes were counted" and is "ready for the next light." Public opin ion, he declared, has "steaojly borne the desfiny of America near ' er each day to the seat of the j League of Nations at Geneva." In his first public address since ! the campaign of9 1920. Mr. Cox as j sailed the policies of the present I administration, 'condemning t h e I work of the Washington armament ! conference, declaring that America ; had refused to accept world lead i ersbip and that financial depres sion was due to the "treachery of I Lodgism." Thousands of Re'publi j cans, he declared/'now realize that j ! the leaders of their party in the j making of policy . _ ..have pro 1 faned . Republican history by for I saking the soul of Abraham Lin ! coin for the spleen of Henry Cabot j Lodge." Mr. Cox said in part: "As I interpret properties, the defeated candidate for the presi dency should hold to the unspoken ; word until time has brought the I unmistakable evidence of payment j or default by those In power on j campaign pledges ... 1 "Almost a full year has elapsed I and very properly can we apply an i analysis of its developments. The ; ruins of war still mar the inter- j j national prospective. Willing in- j j ffiistry is without the aid of fi I nancial credits. Countries solvent I if not rich in natural resources, arc ; in idleness and misery; The reac- ! j tion, true to prophecy, is upon us and every community is affected, j The echoing cry of 'America first" ! is a mockery to human intelligence j as unhappy experience tells us that I we are a part of the whole world I in soul, by the will, of Almighty 'God. and in practicalities by the j logic of nature's laws?Republican ; j dictum to the contrary not with-! ! standing. I "Farm products have diminished ?.in price much'below the labor cost i ! of production: vast inventories of j ! shop and mill have followed fche I : downward trend until thousands ofj j farmers and business concerns are I hopelessly insolvent. Only the re j siliency of our banking system has j averted the most destructive panic ! in all history. Inventories have 1 diminished in value, but debts re j main the same. There can be but ! one final result of this situation, j "And how needless it all has [been! When peace came Europe j needed rebuilding. America had the supplies. Europe required! I credit. America had a prosperity ? upon which credit could have been j given. ; "The distress in Russia is j chargeable to the terrors of So j vietism. The distress in America j to the treachery of Lodgism. "The. first essential thing to our I prosperity is the formal recogni tion /by our government' of the j fundamental cause of depression, j ! Since this would carry acceptance \ of the theories of Woodrow Wilson. ! there is hope only for the belated i relief that will come fron: the j pressure of public opinion ... I Every economist and statesman J in the world whose mental proc- j ! esses are free from ulterior thought I admits that the house of civiliza j tion cannot be put in order with I out the cooperation of the nation '. possessing both the leading gold I supply and the-facilities of tremen dous productivity. In the face of (these fundamental truths, the ad | ministration at Washington is vain j ly trying to bring better times, by I resort to the noisy methods of a i circus. j "Of tile present treaty between the governments of the United [States, Great Britain. France and l Japan prudence might suggest that j judgment be reserved until we (know what the treaty means and j the extent of Mr. Lodge's secret ; understandings. The president gave j interpretation of the written word; ' Mr. Lodge instantly corrected him : with the statement that the real j meaning was in the nnwritten word j ?in tile understandings between the representatives ? which Mr. Lodge had refrained from mention j ing when he addressed his country i men. .lust when nations seemed ; committed to open diplomacy. .Mr. Lodge in the name of America", re sorted to the diplomatic methods of \ old. ; . _ "In its behalf it is said of the treaty that it recognizes the prin ciple of arbitration and gives pro tection against external aggres j sion. On the other hand, it creates .a group of nations, and thus may ? encourage the establishment of ; other groups. This treaty creates division of moral purpose. The League of Nations conteniplat?*s the merging of purpose. This treaty sets up a neu enterprise that i may bad to other like projects 'I'lc- League of Nations assembles .ill nations deserving of name. I f . fit.- presen! pact, after mature rc7 \"ot?Let all the ends Thou Aiins't a Sumter, S. C, Saturday, COTTON FUTURE BRIGHT _ i Director of War Fi nance Corporation j Says Products Must j Be Sold More Grad-1 ually ? i Washington; Jan. 24.?Eugene; Meyer, managing director of the war finance corporation-, address-! ing the National Agricultural Con-i fercnce. said corporation advances! have been a material help to ag riculture and the cotton growing' states may view the future hope-1 fully. lie said they must rccog-: nize the f%c*ssity of selling pro- [ 'ducts more gradually. t Chicago, Jan. 25.?A crime wave I broke here last night. One man : was shot and wounded, probably fatally, two jewelry stores were robbed, and there were twenty eight holdups and a score of minor' crimes. All the police reserves were called out. OPPOSED TO THE GENOA CONFERENCE Administration Per sists in Policy of Holding Aloof from Eurdpe Washington. Jan. 26.?It is indi cated in official circles that the United States is not in favor of participation in the Genoa confer ence at the time set. but might consider a date for the discussion of the general LJuropean economic situation. Big Fire at Scranton Three Buildings, and Stocks of Goods Burned Wednesday Scranton. Jan. 25.?Scranton suf fered a very heavy loss by fire this i mbrning. The alarm given at 1 j o'clock when fire was detected in i the front portion of J. M. Parker's [store. A strong wind was blowing. As the town has no means of fight ing fire the flames soon spread i<> G. C. Cusaac's grocery store, and the Singletary Drug company. The three brick buildings were com pletely destroyed, with goods and fixtures, except a small portion from Cusaac's Grocery' store. J. M. Parker's loss on stock and building is between $2-2.000 an.. $25,000: G. C. Cusaac's loss on stock. $6.000; Singletary Drug com pany's loss on stock and building. #$20,000. All parlies will lose very heavily as buildings and stock were parti ally covered by insurance. It is understood that the buildings will be replaced at once. ? ? ? Against Rural Police. Orangcburg, Jan. 24.?Senator L. A. Hutson wiil probably introduce a bill in the senate this week to do away with the county rural po lice system. It now costs the county more than $14,000 for the ! rural police, and it is the idea of the new bill to curtail expenses. The new bill would give the mag istrates a constable and save tin county a considerable amount. flection, is to be accepted by Amer j ica. it should be provided tbat whenever America joins the League of Nations, then the Washington treaty shall be null and void . . . "Our faith in the official pro nouncements of 1920 is unaffected by the result of the election of that year. We stand in our very tracks, just when- we were when the votes were counted. We have not retreated a step. Tbe Ha^ still flics and we are ready for the next fight." Joining with tbe former Ohio Governor in critcizing the Hard ing administration were Senators Tat Harrison, of Mississippi, and Attlee Pomereiie. of Ohio: Joseph Attlee Pomerene. of Ohio, and Mrs. Gertrude Breslau Fuller, of Pitts burgh. "The record of the Republican administration during the last ten j months is enough to arouse the ire I and cause not only a blush of shame but of resentment to those of progressive and independent principles." Senator Harrison de clared. Senator 1'otiierene. besides criti cizing the acts Of the administra tion, particularly denounced the ac tion of the senate in seating Sen ator Xewberry. of Michigan. Senator Harrison paid a glowing tribute- to Governor Cox. asserting that "although defeated by his ser vice to the people, he has endeared himself to democracy of the coun i ry." Tin- Jackson Day rally, held in Memorial Hall. was attended by repreyoiit:iti\?? I> ?? m o ?? r'a t s from cv? ry section of tit*- stnte and ma n y from other st.it- s. t be thy Country's, Thy God s and 1 January 28, 1922 cotton growers' ; association ?' ?_ t Carl Williams Dis-1 cusses Cooperative: Marketing Before Agricultural Con ference i Washington. Jan. '1 ?>. Carl Williams, president of tin- Ameri can Cotton Growers' Exchange,! ! told the agricultural*' conference [that the State Cooperative Mar-i keting Associations of cotton grow-1 je'rs, which handled fifty million1 I dollars worth of cotton this sea-; I son. apparently will become per- ' jmancnt institutions, saying that; I the association provided for the . 1 orderly marketing of the crop and \ j shortening the route between ; producers and spinner. j .Governor Parker, * of Louisiana,' advocated opening export markets i 1 to American producers through ! extension of long time credits to I foreign purchasers, by the federal; ? reserve system. chargeT made and denied I Claim Soldier is Shot When He Failed to, j Keep Up With Com-! i . inland . ? '-? j Washington. Jan. ' 2C-?Charges. 4that Colonel I'aul Malone. stationed j ; a* Camp Denning, (la., shot and' killed a soldier, in France, because! he failed to keep up with the , jcommrfnd were made and denied' ; before the committee today. . Ford Signs War Department Contract! ? - ' -.?. -? ---i Acceptance of Bid For Lease and Purchase of Muscle Shoals Now Up to Congress I / . . ' i Detroit, .Tan. 20.? The contract covering the proposed lease and j purchase of the government's ni- ; . tr?te and water power projects at ; Muscle Shoals. Ala., was signed by] i Henry Ford and returned to?thc| I war department by one of the; i Ford engineers tonight, a few j : hours after it bad been received, j ; it was announced at the ofiices of j ? the Detroit manufacturer. Weeks Would Complete Muscle! S* Pals Dam. j. Washington. Jan. 25.?Secretary: Weeks informed delegates to ihei (National Agriculture conference in j session here today "that if there j ! were no Ford offer" he would "rec- . ommend to congress the comple- ! tion of the Wilson dam at Muscle j Shoals, Ala." i The statement was reiterated : tonight by the secretary after con ferences with delegation from the1 agricultural meeting which called ; to urge him to approve the pro posal for purehao and lease of the j Muscle Shoals property submit- [ ted by Henry Ford. Death in White \ Corn Liquor j _ j Louisville. Ky? .Ian. 113.?-"The face on tin* barroom Moor should he a skull, with crossbones un der it. these days," declares Geo. j H. Lliueoe. federal prohibition) agent. i "Death lurks in v. bite corn li eijor." he says, 'it all contains fusel oil. one of the most deadly poison*. First-run moonshine is Tank poison* yet the moonshiner who makes the stuff -'first shots'' it is called by the legitimate distill er, doesn't trouble himeclf lo dis til it again, but sells ii as ii is for] drinking purposes." Double distillation and ageing in] charred barrels for at least four! years is necessary to remove the fusel oil. Mr. Ulincoe says. "\o moonshine I have ever seen] in my experience as a prohibition enforcement officer has been aged. The bootleggers" motto seems to be 'full speed ahead' and never safely! first." SHIPPING BOARD REDUCES SALARIES Washington. Jan. -~>.?- A reduc tion of wages of officers and men on shipping board vessels amount ing to over fifteen per cent is ef fective Februar} ^th. it i< an no u>.d. TARIFF RILL TO BE PASSED Washington. Jan. 2~>.?After the conference the Ftepuldican leaders gave assurance of .i permanent tariff bill which will '?? |?assed at tie- present session of congress. Truth's.*' INCOME TAX 1 BILL MEETS i OBSTACLES - Present Law is, Ex-; cept For Rates,! Practically a Dupli cate of Present Fed- j eral Law Columbia. Jan. 25?"What is itall about?" is the question that a great many people are now ask ing relative to the differences on the income tax bills. The House, has passed the income tax bill that was prepared for it by the experts, after the, committee, had digested the measure. As a matter of fact, what seems to have occurred is this. The bill was prepared by tax .ex perts and the ways and means com mittee understood that it was. to all intents and purposes, a duplicate of the federal law, except us to the rates, and it was only the rates that were seriously considered by the committee. The bill then pass ed the House without discussion, with the understanding that it was practically the federal law except as to rates. It is now before the Senate committee on finance, and people are asking what is really in the income tax bill, and it promises to be the real bone of contention at the present session. The finance committee now expects to give final consideration to'this measure at its nceting on Thursday afternoon and it may so smooth out the wrinkles and satisfy the various contentions in committee, that the bill will go through the Senate as reported. As I have said before, the chances are today that the income tax bill will pass in some form. The issue at the moment is the rate of taxation. The bill before the General As sembly takes 15.000 words to ex plain all of the details and nat urally a newspaper article that un dertakes to exjdam the essential points must necessarily be brief and touch the high spots. The hearf of the pending bill as passed by the House, and now before N-the Senate, is contained in sections C and 7. which read as follows: "Normal tax: There shall he i levied, collected and paid for each -taxable ytrarupon* the nef'incame of every inhobitnat a normal tax of j o per centum of the net income in excess of the credits provided in section 12: provided, that in the case of an individual taxed as a citizen or resident of the state of South Carolina the rate upon ?tha first $4,000 of such excess amount shall be 2 per centum. "Surtax: That in addition to the : ormal tax imposed by section G, of j this a t there shall be levied, col j lecfed and paid for each taxable j year upon the net income of every I individual, for the calendar year j 1921 and each calendar year there I after, a surtax of 3 per centum of i the amount by which the net in ' come exceeds $5,000." It will be illuminating to present this angle of the contention. I'nder the federal law the normal tax carries the same exemption as under the proposed bill, that is. $2,500 for lite head of a family and $400 additional exemption for each dependent child under IS years of age. Then- is no difference between the federal law. the proposed state law and that advocated by the South Carolina Taxpayers' Associa tion as to the exemption for the head of a family. Unmarried or single persons carry an exemption of$I,000. I'nder the federal act taxable-incomes between .52,500 and * 1,000 pay 1 p?.r cent. ITndcr the proposed House bill tin- tax is per cent. Cn'der the proposal of the South i'arolina Taxpayers' Association the normal tax for the same amount there is suggested a one-half of 1 per cent tax. Then on incomes of from $4,000 to $5,000 the State as sociation proposes a l per cent rat-. ? i nder tin- federal law the tax able net income of $4,000 to $5,000 and upwards is taxed at the rate of .s per coin normal fax. L'nder tin- plan of the taxpayes' associa tion this net income would carry a rale of l per cent; A very material .point of differ ence is in the surtax charge. The federal law has hh ascending scab on taxable incomes over $5,0,00". be ginning with 1 per rent and run ning up to as high as 05 per cent where tin- income exceeds $1,000. ii (in. I'nder rix.? proposed and pending HoKre bill, a tint rate of :! per cent Is suggested, applying to all tax aid-' incomes ovei* $5,000 by way of tin- surtax. I'nder tin- plan of the South Carolina Taxpayers' Association, the surtax begins at one-half of 1 per cent and increases up to 4 per ecu I to ?22.000 net annual in comes and there stops as to rate. This is one of the chief points oi difference in the two proposi tions. Then in the matter of corporation taxes. L'nder the federal Act the rat?- for profits for the year 1921 is ! ?! per cent, plus the excess profit. This t>21 income is payable in 1922 and includes the CXCt'SS protit. P.Ut the profits made for 1922 the tax able without the excess protit. In comes from corporations for 1922. that is. net incomes made in 1.922'. to pay a flat income tax of 12 L-2 per c.-nt on all profits over $2.uw/i THE TRUE S?ll INSURRECTION ! BREAKS OUT IN EGYPT British Troops Quell! Revolution in Cairo! Killing One Hun-j dred and Wounding a Thousand _______ I London. Jan. 26.?Ii is reported I unofficially that fresh disorders I have occurred in Cy.io. Egypt, one I hundred and ninety persons being j killed and over a thousand injured. : British troops quelled the insur rection. ! ? ? ? ! Dr. Mof f att Dies in Columbia Columbia. Jan. 23.?Dr. J. S. : Moffatt. who was until a few weeks ago president of Erskinc College, Due West. S. C. but who has since been pastor of the Associate lie formed Presbyterian church of Columbia, died at a hospital here . today, * after an illness of several j weeks with cancer. Dr. Moffatt was one of the prominent men of ' the state and a leader in the ; "seccder" denomination of the south. Dr. Moffatt resigned as president of Brskine last spring and was succeeded by Rev. IL C. Crier, who "was then pastor of the I A. R. 1\ church in Columbia, the two men swapping jobs. He was i born in Arkansas. He is survived j by his widow and nine children. j The funeral will be held at Due : West. - ! . Ceneva. Jan. 2f..?Nineteen mil | lion Russians arc suffering for want of food and fifteen million i will die unless succored. Dr. S. i Nosen told the L ?ague of Nations ' relief committee._ ; uOO profit mark is :cached the. : $2.000 exemption is absorbed and no longer applies. It is important to understand : that the federal law collects a dif j ferent rate for the profits that ?were made during the year 1021 j from what it will collect during ! 1923 from the profits made in 1022. Cnder the South Carolina house ! bill, now before the sonaTf commit tee, corporations are$to be charged i a flat rate of 3 per cent on all pro fits. A credit i* here also allowed : in section 30 of $2,000, which is likewise absorbed when the pro ; tit is in excess of *_f>,00 0. The, federal corporation tax is 12 1-2 ? per cent on corporation income, j as against 3 per cent in the f mth ! Carolina bill, and 2 per cent in the i taxpayers' suggestion of amend I merit. I The proposed house bill provides ! that the Hat rate of 3 per cent shall apply for the calendar year 1921 I and for each calendar year there : after. I'nder tiie propose ' amend I meat of the South Carolina Tax- { i payers' Association, instead of 3 per' ; cent provided in the house bill, tin 'suggestion is that a 2 per cent Hat rate be provided for ail years. The (Taxpayers' Association, through Mr: I McLeod. made an important sug j gestion. by which it is proposed [to put teeth in the income tax bill, land suggested by that an amend [ mem? of two paragraphs looking! to the enforcement of the bill, j , which provides: "Any taxpayer that makes an .income tax return to the state! J under the provisions of this act > for a less amount than is made to , other government authorities for I the :ame taxable period snail he ! guilty of a misdemeanor. and shall be fined not more than $10, ; 000. or imprisoned not more than j one year, or both, together with the cost of prosecution. "Any taxpayer may f'.le with the Tax Commision a copy of the in come tax return made to the fed eral authorities for the same tax- I [able period provided in this act in lieu of the state income tax re turns on forms prescribed by the! , Tax Commission." The exemptions. deductions, ! credits and allowances, the tiling of returns and all of the details! in the bill proposed by the South Carolina house, now before the sen - | ate. are practically identical and in i essential details arc absolutely identical with tin- federal statute. A material issue that is being much, discussed is contained in ! these few words of the pending? house bill: "The first taxable year to be ; called the taxable year 1921, shall, be t in- calendar year 11'L' 1." And throughout the proposed] bill this strain is continued, which Iook-s towards the collection of an income lax on incomes shown dur- j ing t he year 1021. The income to the state under the j pending ways and means commit-' let- income tax bill i> estimated by] its advocates at $1.000,000. Some. : not over-frietulh to the bill, say at j the rates provided it ought to raise j $3.000.000. It \>.as developed at j the hearing that, with a strict en-I forcement. there would he raised under the Taxpayers' Association amendments about $1,000.000. Ad-, v.n ates of tin hous > hill argue that \ if the amendments suggested by! the Taxpayers" Association be] adopted the net proceeds would i>e about SIOOOOo?evidently a very i\ idc difference of computa- ' Tit. ine?..me toK bill is still be fore tin- senate finance committee.! 71RON. li?l.ubli.sIic? June 1. I860. VOL. LH. NO. 48* HOW MUCH MORE TAXES CAN THE PEOPLE_STAND ? Secretary Mellon Re iterates Opposition to Soldier Bonus and Explains Why the Burden is Too Great Washington, Jan. 2 4.?Treasury opposition ro a soldier bonus re mains unchanged, but if there is to be a bonus ii must be provided through taxation in addition to taxes imposed by existing laws. Secretary Mellon declared tonight in a letter to Chairman Kordncy of the house ways and means com mittee. Any attempt to provide for the bonus through the use of the principal and interest of the foreign debt to this ??otmtry, h^ contended, "would be futile as well as unwise." Mr. MeJlou's letter was in re sponse to a request from Mr. Ford ney for an expression of the views of the secretary and the treasury department on the government financial outlook for the coming year and a half and for sugges tions as to legislation. Submit ting detailed estimates of govern ment receipts and expenditures for the fiscal years, 192*2 and 1923 and the- tteasury plan for refunding the short dated debt. Mr. Mellon dec.a red no allowance had been made for any extraordinary expen ditures for a soldiers' bonus, which would- cost on the most conserva? tive estimates, he said, probably not less than $830.000.000 in the first two years. ?'The figures." he contended, "show there will' be no available surplus but more probably a de ficit, and that wuh the enormous refunding operations which the treasury has to conduct it would be danger?us in the extreme to at tempt to finance the expenditures involved in the bonus through pew borrowings. The position .of the treasury remains 'unchanged, but if there is to be a soldier's bonus. It is clear that it must be provided for through taxation and through taxation in addition to \ihe taxes j imposed by. existing law." On the othAr hand no indirect i means of financing the bonus I would make it any less'-ah ex pense to be borne in the long run : by the tax payer. Mr. Mellon declared, taking up the proposal to use the foreign debt as a bar-is for ! bonus payments. It is impossible, lie r. aintained, in advance Of funding arrange ments ot estimate what may be collected on the foreign < ?>?>; in the near future by way of principal or interest. The objigati ?ns. which are in the form of deraa id obliga tions, are n0r, he asserted, in shape to sell to the pui he while to offer them with the guaranty of this government wotxld interfere with the treasury's refunding oper ation?: and prove more expensive than the sale of direct cbligations of the government. "At the same time." he added, "it would enormously complicate the international situation and cer tainly embarrass the funding Be got iationX" It would accomplish nothing, Mr. Mellon argued, to set aside the for eign debt for the payment of the bonus, even if enough could be : realized in time. Discussing the financial outlook, of the government. Mr. Mellon presented detailed figures >- ovcring budget estimates which, he said, indicated a deficit of over $24.000, ! ?00 for 1922. and a deficit of over , $1S7.000,000 for li'2.".. Not allow ; ing for $50,000.^00 requested by the shipping board for the pay ment of claims. $7.000,<MMl to He [spent for Russian relief by tho United States Grain corporation ami $5.000,000 to be jniid as the 1923 installments under the treat* I with Colombia, a total of $112, ! ooo.ooo. To overcome these deficit?, he ex plained, expenditures must be re jdueed i': the aggregate by about ! $300.000.000 in the next two years, j while at the same time the gov | eminent faces a heavy shrinkage of receipts. l:i view of tin* depres sion in business, l?e added, there is I grave duobt whether the estimates of receipts which appear in t?? 'budget can be realized. The overshadowing problem of the treasury. Mr. Mellon declared was in tin- hamlling of the public debt, amounting at Ihc end of the j past year to $23. J"js.:"> '.:::. 1 of i which $6,500.000^000 falls due within the next l** months; The refunding of this vast maturity, he asserted, would require tie: treasury's constant attention from now on. How much additional taxation would be necessary to pay a sol dier's bonus, Mr. Mellon declares!/ would be difficult to estimate but on the basis of the McCumber Mil i: would appear that the total cost would be about $X300.00O,00f0, of which at least $S5O,<?0?E0?0 would fall dm- in tin- first two years of Operation and possibly as high as ? 1,000,0,00,000 if an unexp*>- Veiny large number of veterans sT.'Ottld choose ??ash. The minimum cost im placed at about $1,560.000,900 based on cash payments and the maximum cost at. about $5.250. 000,000. if allt ho veterans should rake certificates in lieu of cash.