The sun., 1909-06-28

;
policy OF the corporation Is obvious.
From now on q relatively smaller amount
OF earnings is likely TO be put hack, into
the property and the shareholders VIII
almost certainly receive q greater pro-
portion Of earnings In the form OF divi-
The foreign financial markets have
been all more or less inclined to heaviness
recently. owing to the approsch ,of the
semi-annual financial settlements which
cause larger shifting Of funds and
liquidations OF obligations than that
necessitated at any other time In the
twelvemonth with the exception Of that
at the end OF the year. At the same time
the effect produced by our gold exports
this year and by the relief extended to
the English situation by menas OF our
assumption. temporarily. Of the English
indebtedness to Argentina on grain
purchases are reflected in the present
strong condition Of the Bank OF England,
which reported last week q higher ratio
OF reserves to liabilities thsn at any
other time, save on two occasions. and
then but very slightly. since 1888. Sterling
exchange was strong throughout the
week and there was talk at one tins
OF an immediate resumption .of gold
exports to the foreign financial centres.
But exports were not made except In
trifing amounts, and the prevailing
opinion among our bankers 10 that with
the time 90 near at hand when foreign
bills In psy..en. sor our grain vii once
more appear in the sterling market
prospects Of gold exports until much
later In the year are becoming remote
So far as the corporation tax question
is concerned, while dissent TO the idea
is strong and unanimous In the financial
community, the general feeling u that
the measure. even IL 1t becomes law,
will not be much Of stock market factor.
1t is subject which the courts will
have to deal with after their usual lsisurely
fashion. At the Same time universal
curiosity is expressed a. to the reason
why. il a temporary deficit in the Govern
ment's revenues 10 to be made up. this
cannot be done by the imposition OF
stamp tax rather than by recourse to
novel, inquisitorial and thoroughly OBJ
jeotionable methods OF taxation. The
stamp tax is easily collectiblo and can be
as easily abolished when the oooaAion
for It disappears. Is 1t possible that the
only purpose in levying the corporation
tax is to have 1t said that the present
national Administration has done sopae-
thing along the lines laid down by Mr..
Roosevelt? The grain markets most OF
the time during the week were heavy
because OF the gratifying agricultural
conditions, although the extreme and
conceded scarcity OF existing supplies
OF wheat still holds the options for the
nearby deliveries of wheat at high level
az compared with those referring to
grain raised in the present year. It 10
still true, as regards agricultural ahairs
in general. just as it 10 also true OF the
security market, that the course Of both
OF these depends upon the years crops.
So far as the international agricultural
situation 10 concerned. there are strong
indications that there 10 to be q
shortage OF the foreign crop. . develop.
ment that will help and not hurt the
American farmer. Az regards our own
land, the gods this year have continually
smiled. Over the Western corn and
wheat fields now, drenched with three
months Of moisture. high In the heavens
hangs each day q warm and unclouded
ailp