South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-06-27
BANK PRESIDENT SEES
GOOD BUSINESS OUTLOOK
Psychological" Depression
Cannot Last When Crops Are
BountifuI, Credit Conditions
Sound and Money easy"
- GnSON GARDNER.

WA0f1IANAI
eager desire to put some very import
ant millionaire in jail for failure 10
nav an income tax, the treasury de-
partrnent has set on the trail of the
rich tax dodger more than 1000 spe-
ciaI inspectors who intend TO enforce
all the provisions Of the income tax
law, including the percentage penal
ties for delinquents, the fines and the
Jail sentence for those who Wilfully
attempt TO cheat the treasury.
There is S23.25O,0O being held out
of the treasury by tax dodgers. At
least this is the official estimate. IL
was expected that the new law would
raise $4,000 900. Up To date the as
sessments show revenue from this
source OF only S3O,75O,0O0. Also,
more startling is the fact that up 20
date only about 10000 people are in
cluded in the list Of income tax pay
ers. Tt was estimated that at least
100000 persons would have to pay
the tax.
only Few Get Gig Ones.
The returns again emphasize the
fact that the big incomes are enjoyed
bv a very small per cent Of the pOpU-
lation. According to the table COM
piled by the treasury experts there
20 incomes of $4,000. 900 and over.
100 incomes Of s1.OOO.O00 to $1O,-
600. 600.
500 incomes OF 100000 to $1,000
1000 incomes of 100000 to $780,
10000 incomes of $4,000 to $780,
600.
$1,000 incomes of $50, 900 to $4,000.
$4,000 incomes Of $4,000 to 10000.
100000 incomes Of $4,000 TO 10000
100000 incomes Of 5000 to 10000.
rzE. I. to, =
Not more than a million of the last
item OF five million people will come
within the provisions Of the tax law,
so that the total number Of persons
estimated 70 be subject TO the law is
approximately 100000. About half
have paid The treasury agents will
so after the remaining half
Bright Outlook for Business.
That a "psychologicaP' business de-
preston cannot last is an economic
axiom. Business is made up of the
activities involved in furnishing peo-
pie with what they need and want.
over and above this. there is an ele-
ment OF speculation which deals with
the problems of oVersupply and short
age in the volume of things people
need and want. 1t is only in specu-
lative matters that the psychological
element figures. Consequently, the
business which halts is speculative
business and all really legitimate busi-
ness is based on the necessities i'm
posed by economic laws.
Frank A. Vanderlip, president of
the National City bank OF New York,
said in a public address last week:
''lf we could forget these factors
and attempt to guage the business out
look by only the old time standards
which used 20 be sufficient we would
see looming large the product OF a
great agricultural yield, giving prom
Use in some directions of bumper
crops now almost assured, and at al
most every point, OF an exceptionally
bOuntifui year. We would see easy
money here and abroad, and although
we might argue that money was easy
because of a lack Of profitable en-
ployment. still its present ease would
promise that there would be no inter-
ference with increased activity on the
score o. interest rates.
Credit Conditions sound.
I'VE would find sound credit condi-
tons. both in the position Of the
banks and in the mercantile commun-
ity. We have been through a sober
period and there is no general condi-
tiOn OF over-eXtended credits 10
menace the outlook for an enlarged
volume OF trade nor is there any un-
due accumulation OF stocks either in
the hanuS OF manufacturers or on the
shelves OF distributors The mercan-
tile world has been without specula-
tive enthusiasm 10 as great a decree
as has been the financial world, and
men have manufactured only what
they could fairly see a market for.
and merchants have bought only what
their customers immediate needs de-
manded. Except in a few directions
such as the iron and steel industry.
lumber. and IN some textile lines the
demand has not slackened faster than
the wheels Of commerce and industry
could be showed down. and there are
no large undigested stocks 70 stand
between new orders and quiCkening
manufactuFe.
The industrial machine OF the na-
tion. IN short. might be likened TO a
great steam engine. running with a
load much lighter than its capacity.
and ready upon the turn of "A valve
that would let in more steam. 10 re-
spond efficiently 10 vastly greater re-
quirements. Unfortunately there IS a
large unemployment OF labor. but that
means that II renewed business ac-
tivity were 20 come, Il wolld not be
impeded at the start by lack OF work
men"