tion. The excess-profits and income-tax laws of the war period were new in principle and exceedingly complicated in practice.

The treasury has not yet become current in the ascertainment of tax liability and collection of taxes for this period.

We must, therefore, consider the establishment for the future of such a policy of taxation as will insure the maintenance of the sources of taxation without the aid of these reservoirs, which will soon be empty.

very

This means that the policy must be SO framed that it will encourage the creation of income subject to tax, will close the most obvious methods of avoidance, will not diminish by excessive estate taxes the values upon which the federal and the state governments must rely for revenue, and will bring about a reduction in the high cost of living as a means of meeting world competition.

Of the 110,000,000 people in this country less than 4,000,000 pay income taxes directly. The remaining 106,000,000, who pay no such direct taxes, are given no relief from what they pay indirectly in everything they buy. They too must have tax reduction.

These conditions the present bill does not meet.

High taxes were adopted as a war measure in 1918. We have had but six years' experience under them, and their detrimental effect upon our fiscal structure is not yet fully appreciated. To the intelligent observer tendencies are already apparent which indicate the stress to which this structure is being put. I mention as an instance the increased cost of capital for new industrial enterprises.

These influences are being felt even in our present prosperity. During the after-the-war period of adjustment the other great nations of the world have been disturbed more than this country. They are not yet restored. As a consequence, we have been relieved of much of the world competition.

When other countries return to productivity and become again the serious commercial rivals of our people, and when we experience those periods of depression which normally follow periods of prosperity, we should have

our house in order by so establishing our tax system that its economic effects will be beneficial and not harmful.

The bill represents tax reduction, not tax reform.

If we are to maintain the American standard of living and hold our place in the world. we must adjust our taxes upon an economic and not a political basis.

The bill comes to me for consideration less than two weeks before the contemplated adjournment of congress, and it provides for a credit on 1924 taxes which should become effective before June 15 next.

No different bill can be passed before adjournment.

The question before me is the present law or the bill in the shape it has passed the congress. As it stands, in its administrative features generally it is an improvement on the existing law. It will meet the needs of revenue through the fiscal year 1925, and possibly be sufficient for some time if no unforeseen expenses arise.

The immediate relief by credit on 1924 taxes of 25 per cent is due, is expected by the people, and should be promptly given, and the determination of the taxes to which 1924 incomes will be subject should be made certain while the income is still being received.

These opinions are supported by the treasury department.

As I have said, the bill does not represent a sound permanent tax policy. and in its passage has been subject to unfortunate influences which ought not to control fiscal questions.

Still, in spite of its obvious defects. its advantages as a temporary relief and a temporary adjustment of business conditions in view of the uncertainty of a better law within a reasonable time, lead me to believe that the best interests of the country would be subserved if this bill became a law.

A correction of its defects may be left to the next session of the congress. I trust a bill less political and more economic may be passed at that time. To that end I shall bend all my energies.

"It is clear that congress, under its express power to enforce by appropriate legislation the prohibition of traffic in intoxicating liquors for beverage purposes, may adopt any eligible and appropriate means to make that prohibition effective. The possible abuse of a power is not an argument against its existence. And

SO

tion of traffic in such liquors for beverage purposes. congress has exceeded the constitutional limits upon its legislative discretion. "We cannot say that prohibiting traffic in intoxicating malt liquors for medicinal purposes has no real or substantial relation to the enforcement of the eighteenth amendment, and is not adapted to accomplish that end and make the constitutional prohibition effective."

Eight churches

were destroyed or so badly damaged as to require rebuilding. The city was placed under martial law for several days.

Lenses, 40%; optical glass, 45%.

Photographic lenses, opera and field glasses, telescopes, microscopes, n.s.p., 45%.

Incandescent light bulbs and lamps, 20%.
Stained glass windows, 50%.

Marble, breccia and onyx in rough, 65c cu. ft.: sawed or dressed, $1 cu. ft.; monuments,

vases, etc., 50%.

Burrstones, made into millstones, 15%.

for watches, 10%.

Clocks and clock movements, 45%. Automobiles and motorcycles, 25%. Airplanes and motor boats, 30%. Bicycles, 30%.

Steam engines and locomotives, 15%. Sewing machines n.s.p., 15% to 30%. Cash registers, 25%.

Printing presses, 30%.

Lace making and other textile machinery, 40%.

Grindstones, $1.75 ton.

Slate, manufactured, 15%.

Watch crystals, 60%.

Schedule 3-Metals and Manufactures Of. Iron in pigs, wrought and cast scrap iron, 75c

ton.

Alloys used in manufacture of steel n.s.p.. 25%.

Bar iron, except castings. 2-10c lb. to 11⁄2c lb. Steel ingots, blooms, slabs, sheets and plates n.s.p., 2-10c lb. to 3c lb.: valued above 16c lb., 20%.

Beams, girders and other structural iron and steel, 20% to 25%.

Hoop or band iron or steel, c lb.
Wire rods, 3-10c lb. to 6-10c lb.

Iron and steel wire, 1c lb. to 1c lb.; valued above 6c lb.. 25%.

Woven wire cloth, 25% to 45%.

Iron and steel anchors, 25%.

Electric storage batteries n.s.p., 40%.
Balls for roller bearings, 10c lb. and 45%.
Wheels for railway purposes. 1c lb.

Anvils under 5 lbs., 45%; others, 1%c lb.
Blacksmiths' hammers, tongs, etc.. 1%c lb.
Cast iron pipe. 20%.

Chains. %e to 4c lb.: sprocket chains, 35%.
Nuts and washers, 6-10c to lc lb., or 35%.
Nails and spikes, 4-10c to 11⁄2c lb., or 15%.
Rivets, studs, 30%; n.s.p., le lb.
Horseshoes, %c to lc lb.

Corset clasps, 35%.

Screws, 25%.

Table and household utensils n.s.p.. 5c lb. and 30% to 40%.

Crosscut saws, circular saws, n.s.p.. 20%. Engraved steel plates and lithographic stone. 25%.

Umbrella ribs of steel or other metal, 50%. Sewing machine needles, $1.15 per 1,000 and 40% to $2 and 50%.

Fishhooks. rods, reels, flies, etc., n.s.p.. 45%. Saddlery and harness hardware, 35% to 60%. Belt buckles, 5c to 50c per 100 and 20%. Hooks and eyes. 4c lb. and 25%.

Metal buttons, 1-12c to c per line gross and 15% to 45%.

Pins, not jewelry, 35%.

Pens, metallic, 12c to 15c gross.

Penholder tips, penholders, 25c gross and 20% to 45c gross and 20%.

Fountain pens and holders, stylographic pens, 72c dozen and 40%.

Knives, lc each and 50% to 35c each and 55%.

Table knives, forks, steels, 16c each to 8c

each and 45%.

30%.

Shovels, spades, 30%.

Aluminum, 5e to 9c lb.

Metallic magnesium n.s.p.. 40c lb. and 20%.
Antimony metal, 2c lb.
Bismuth, 72%.
Cadmium, 15c lb.

German silver, 20% to 30%.
Copper, 8c to 12c lb.
Tin foil, 35%.

Gold leaf, 55c 100 leaves.

Silver leaf, 5c 100 leaves.

Tinsel wire, 6c lb. and 10% to 55%.
Quicksilver, 25c lb.

Powder, fulminates, 12c lb.
Type, new, 20%.

Nickel oxide, lc lb.; nickel alloy, 25%. Bottle caps, undecorated, 30%: decorated, 45%.

Lead-bearing ores, 1 c lb.: lead bullion. 2%c to 2c lb.

Zinc-bearing ores with 10% or more of zinc, c to 12c lb.; zinc in blocks, 2c to 24c lb. Print rollers, 60%. Twist drills, 60%. Articles n.s.p. of platinum, gold and silver, 60%.

Schedule 4-Wood and Manufactures Of. Logs of fir, spruce, cedar or hemlock, $1 m. Brier root or wood. ivy or laurel root, unmanufactured. 10%.

Cedar, lignum-vitæ, ebony, box, mahogany, rosewood, in the log. 10%: in boards, planks, and other sawed forms, 15%; veneers of wood and wood unmanufactured n.s.p.. 20%.

Hubs for wheels or blocks, 10%.
Casks, barrels, hogsheads, 15%.
Boxes,

25%.

barrels, other containers for fruit,

Reeds or rattan, 20%.

Furniture of wood, rattan, bamboo or fiber of any kind, 60%.

Toothpicks of wood or vegetable substance, 25%.

Blinds, screens, baskets, of bamboo, wood, straw, palm leaf, 3%.

Manufactures of wood n.s.p., 33%.

Schedule 5-Sugar, Molasses and
Manufactures Of.

Sugar, tank bottoms, sirups of cane juice,
molasses testing 54 to 75 sugar degrees by
polariscope, 1 24-100c lb.: for each addi-
Molasses and sugar sirups n.s.p., testing not
tional sugar degree, 46-1000c lb.
above 48% total sugars, 25-100c gal.; above
48%, 275-1000c gal.

Maple sugar and maple sirup, 4c lb.
Sugar candy and confectionery n.s.p., 40%.

Schedule 6-Tobacco and Manufactures Of. Wrapper tobacco, unstemmed, $2.10 lb.; stemmed, $2.75 lb.

Filler tobacco n.s.p., unstemmed, 35c lb.; stemmed, 50c lb.

Other tobacco, manufactured or unmanufactured, n.s.p., 55c lb.; scrap tobacco, 35c Ib.

Snuff and tobacco stem, pulverized. 55c lb. Cigars and cigarettes, cheroots, $4.50 lb. and 25%.

368

Schedule 7-Agricultural Products and

Provisions.

Cattle, 12c to 2c lb.; fresh beef and veal, 3c lb.; tallow, c lb.; oleo oil and stearin, 1c lb.

Sheep and goats, $2 head: fresh mutton, 2c lb. fresh lamb, 4c lb.

Swine, c lb.; fresh pork, c lb. bacon, hams, shoulders, 2c lb.; lard, le ib.; lard compounds and substitutes, 4c lb. Venison, reindeer meat, game n.s.p., 4c lb. Extract of meat, 15c lb.

Meats, fresh or preserved, n.s.p., 20%. Milk, fresh, 2c gal.; sour and buttermilk, 1c gal.; cream, 20c gal.

Milk, condensed or evaporated, unsweetened, lc lb.: sweetened, 12c lb.: all other, 1%c lb.; malted milk, 20%.

Butter, 8c lb.: oleomargarine, 8c lb.
Cheese and substitutes, 5c lb.

Poultry, live, 3c lb.; dead, dressed
dressed, 6c lb.

or un

Eggs in shell, 8c doz.: egg yolk and albumen. 6c lb.; dried albumen, 18c lb.

$150

Horses and mules valued at not more than
$150 each, $30 per head; more than
each, 20%.

Live animals n.s.p., 15%.
Honey, 3c lb.

Salmon, prepared

fish. 1c lb.

or preserved, 25%; dried

lbs.

Pecans, unshelled, 3c lb.; shelled, 6c lb. Seeds, oil-bearing: Castor beans. c lb.: flaxseed, 40c bu.; poppy seed, 32c 100 lbs.; sunflower seed, 2c lb.; soya beans, c lb.: cotton seed, c lb.

Seeds, grass, 1c to 4c lb.; other seeds, le to 25c lb.

Beets, sugar, 80c ton; other beets, 17%.
Lentils, c lb.: lupines, e lb.
Mushrooms, 45%; truffles, 25%.

Peas, green or dried, 1c lb.; split, 1c lb.; prepared or preserved, 2c lb.

Potatoes, 50c 100 lbs.; dried, etc., 2c lb. Tomatoes, 2c lb.

Turnips, 12c 100 lbs.

Vegetables in natural state n.s.p., 25%; prepared, 35%.

Chicory, acorns, dandelion roots, crude, 1c lb.; prepared, 3c lb.; coffee substitutes and essences, 3c ib.

Chocolate and cocoa, 17%.
Ginger root, candied, 20%.
Hay, $4 ton; straw, $1 ton.
Hops, 24c lb.; hop extract, $2.40 lb.

Spices, 1c to 22c lb.; spices n.s.p., 25%.
Teasels, 25%.

Schedule 8-Spirits, Wines and Other Beverages.
Brandy cordials, liqueurs, arrack, absinth and
bitters (except Angostura), $5 proof gal.;
Angostura bitters, $2.60 proof gal.
Champagne and sparkling wines, $6 gal.
Still wines, $1.25.

Beer, ale, porter, stout, fluid malt extract, $1 gal.; malt extract, 60%.

Fruit juices and fruit sirups. 70c to 70c plus $5 proof gal.

Ginger ale, lemonade, soda water, 15c gal.
Mineral waters, 10c gal.

Schedule 9-Cotton Manufactures.

Cotton yarn, not bleached or colored, 1-5c to 28c lb., according to number; bleached or dyed, c to 34c lb.

Cotton waste, manufactured, 5%.

Cotton thread, c 100 yds.

Cotton cloth, plain, 40-100c lb. to 16c lb.; to 45-100c 18c lb.: printed, bleached,

55-100c lb. to 22c lb.

Tire fabric, 25%.

Tracing cloth, 5c sq. yd. and 20%. Oil cloths, 3c sq. yd. and 20%. Tapestries, 45%.

Pile fabrics, 50%.

Table damasks, 30%.

Quilts, 25% to 40%.

c each.

Knit fabric, 35% to 55%.

Gloves, 50%, or $2.50 to $3 doz. pairs. Hose, half-hose, 30% to 50%. Underwear, 45%.

if hemmed 10% in addition. Handkerchiefs and mufflers, duty Clothing n.s.p., 35%.

on cloth:

Shirts, collars, cuffs, n.s.p., 30c doz. and 10%.
Lace curtains, 12c sq. yd. and 25%.
Cotton articles n.s.p., 40%.

Schedule 10-Flax, Hemp and Jute and
Manufactures Of.

Flax straw, $2 ton; flax, not hackled, lc lb.: hackled, 2c lb.

Hemp, le to 2c lb.

Sliver and roving, 20%.

Jute yarns or roving, 2c to 11e lb.
Single yarns, 10c to 35c lb.

Threads of two or more yarns, 184c to 56c lb.
Manila cordage, c to 21⁄2c lb.

Hose for liquids or gases, 17c and 10%.
Woven fabrics. 30% to 55%.

Clothing, 35%; collars and cuffs. 40c dozen and 10%.

Bags or sacks, 1c lb. and 10% to 1c lb. and 15%.

Bagging, 6-10c square yard to 3-10c lb.
Linoleum, 35%: floor oilcloth, 20%.

Matting, 3c sq. yd. to 8c sq, yd, and 35% to 40%

Schedule 11-Wool and Manufactures Of. Wools, not improved by admixture. 12c lb.: washed, 18c lb.: scoured, 24c lb. Wool and hair of angora goat, cashmere goat. alpaca, 30c to 31c lb.

Waste, 16c to 32c lb.: rags, 72c lb. Wool advanced beyond scoured condition but not further than roving, 33c lb. and 20%. Yarn of wool, 24c lb. and 30% to 36c lb. and 40%, according to value.

Woven fabrics. 24c lb. and 40% to 45c lb. and 45%, according to weight and value. Pile fabrics, 40c lb. and 50%.

Blankets. robes, steamer rugs. 18c lb. and 30% to 37c lb. and 40%.

Felts, not woven, 18c lb. and 30% to 37c lb and 40%.

Fabrics with fast edges, 45c and 50%.

Knit fabrics in piece, 30c lb. and 40% to 45c lb. and 50%.

Hose, gloves and mittens, 36c lb. and 35% to 45c lb. and 50%.

Knit underwear, 36c lb. and 35% to 45c lb.

and 50%.

Carpets. 25% to 55%.

Wool manufactures n.s.p., 50%.

Schedule 12-Silk and Silk Goods. Silk, partially manufactured, 35%. Spun silk or schappe silk yarn, 45c lb.; bleached or colored, 45c lb. and 10c lb. cumulative.

Thrown silk not more advanced than singles, 25%.

Silk thread, $1 to $1.50 lb.
Woven fabrics in piece, 55%.
Plushes, 60%.

Fabrics with fast edges, 55%.

Knit underwear, hose and gloves, 60%.
Handkerchiefs, 55% to 60%.
Manufactures of silk n.s.p., 60%.

Schedule 13-Papers and Books. Printing paper, n.s.p., c lb. and 10%; on imports from countries charging export duty. an additional duty of 10% and in addition the amount of export duty charged by said country.

Paper board, wallboard and pulpboard, cardboard, not printed or decorated, 10%; pulp. board in rolls, 5%.

Filter masse or stock, manufactures of pulp. 25%.

Tissue paper, stereotype paper, copying paper, 4c lb. and 15% to 6c lb. and 15%. Paper with coated surface, 3c lb. and 15% to 5c lb. and 17%.

Picture cards, calendars, cigar bands, placards, etc., decorated and printed, 25c lb. to 65c

lb. Writing and other handmade paper, 3c lb. and 15%.

Books, bound or unbound, 15% to 25%; blank books, engravings, photographs, maps, 25%; booklets, 7c lb. to 15c lb.; postcards, 30%; cards with American views, 15c lb. and 25%. Albums, 30%.

Playing cards, 10c pack and 20%.

Schedule 14-Sundries.

Asbestos, manufactures of, 25% to 30%. Boxing gloves, baseballs, footballs, tennis, golf and other balls, finished or unfinished, 30%; skates, 20%.

Spangles and beads, 35%: ivory beads, 45%. Ramie hat braids, 30%; manufactures of, 40%. Boots and shoes composed partly of wool, cotton, etc., 35%.

Braids, plaits, laces of straw, palm leaf, etc., for ornamenting hats, not bleached, 15%: bleached or colored, 20%; hats of foregoing materials, 35% to 60%.

Brooms, 15%, toothbrushes, 45%.
Bristles, 7c lb.

Buttons, ivory, pearl, 1c gross and 25%.

Cork stoppers, 6c to 25c lb.; cork manufactures n.s.p., 30%.

Dice. dominoes, billiard and other balls of Dolls, toys, Christmas decorations. 70%. ivory, bone, etc., 50%. Emery and other abrasives, ground, lc lb.: emery wheels and files, 20%. Firecrackers, 8c lb.; fireworks n.s.p., 12c lb. Matches, 8c gross: wax matches, 40%. Cartridges, percussion caps, 30% blasting caps, $2.25 per 1,000; fuses, $1 1,000 ft.

per

Feathers and downs, 20% to 60%; importation of feathers except of ostriches or of domestic fowls prohibited.

Furs, dressed on the skin, 10% to 50%; hatters' furs, 35%.

Fans, except palm leaf, 50%.

Human hair, 10%; manufactures of, 35%.
Hair for mattresses, 10%.

Haircloth and felt, 25% to 40%.

Hats, caps, bonnets, etc., of fur. $1.50 to
Jewelry, valued above 20c doz., 80%.
$16 and 25%.

Diamonds and other precious stones, rough
or uncut, 10%; cut but not set, 20%.
Laces, lace curtains, 90%.
Chamois skins, 20%.

Leather, manufactures of, 30% to 45%.
Gloves of leather, $4 to $5 doz.

Gas, kerosene and alcohol mantles, 40%.
Harness, 35%.

Cabinet locks, 70c to $2 doz. and 20%.
Amber, manufactures of, 20%.

Bone, chip. grass, horn, quills, rubber, palm leaf, straw, manufactures of, n.s.p., 10% to 50%.

Ivory, manufactures of, n.s.p., 35%. Electrical insulators of shellac, copal or rosin n.s.p., 30%.

Musical instruments and parts n.s.p., 40%. Phonographs and parts, 30%; needles for. 45%.

Rosaries and similar articles, 15% to 50%. Sponges, 15%; manufactures of, 25%. Violin rosin, 15%.

Works of art, including paintings, engravings, sculptures, etc., 20%. Peat moss, 50%.

Pencils of paper or wood, 45c gross and 25%: pencil leads, 6c gross.

Photographic cameras and parts n.s.p., 20% dry plates, 15%; motion-picture film, lc ft. Pipes of clay, 15c gross to 45%; other pipes and smokers' articles, 60%; meerschaum, crude, 20%.

Thermostatic bottles, 15c to 30c each and 45%.

Umbrellas, parasols. 40%: sticks for.

canes, 40%.

Acids:

and

harrows,

TITLE II.-FREE LIST. Chromic, hydrofluoric, hydrochloric, nitric, suphuric, oil of vitriol. Aconite, aloes, asafetida, mate, crude. Agates, unmanufactured. Agricultural implements: Plows, headers, harvesters, reapers, drills and planters, mowers, horserakes, cultivators, thrashing machines. cotton gins, wagons and carts, sugar machinery, cream separators valued at not more than $50 each and other implements n.s.p.

Albumen n.s.p.

Animals, pure bred, for breeding purposes..
Animals brought in temporarily for breeding
or exhibition purposes.
Antimony ore.

Antitoxins, vaccines, serums for therapeutic purposes.

Arrowroot, natural.

Arsenic, sulphide of, and white.

Articles exported and returned without being advanced in value by manufacture or otherwise.