The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-03

exemption gives clear advantage In
income. as contrasted with taxable in
vestments bearing the same face rate
or interest. In the case OF individuals
subject to income tax, ranging from IS
per cent. In the case OF those subject 10
the proposed lowest rate of surtax to
"a per cent. In the case of those subj
5ect to the proposed highest rate of sur
tax. In other words. Az per cent. tar
exempt income is equivalent to taxable
income ranging from 4.94 per cent. when
subject to the lowest rate of surtax
to 1S.4s per cent when subject to the
highest rate of surtax
Exemption from all income taxes
and excess profits or war profit taxes
Is extended to second and third Liberty
Loan bonds in the bands OF original
subscribers to fourth Liberty Loan bonds
to an amount equal to one and one-half
times the amount of fourth Liberty Loan
bonds, but not exceeding $4,000, pro-
vided subscribers retain ownership of
fourth Liberty Loan bonds at the date
or tax return. Making the second and
third Liberty Loan bonds tax exempt
is equivalent to increasing the Interest
return therefrom.
$4,000 Exemption Total.
Heretofore only $4,000 aggregate
principal amount OF Liberty Loan bonds
nave been tax exempt. The amendment
provides additional exemption on S75-
900 principal amount Thus, an indi-
vidual, partnership or a corporation may
now hold $4,000 Liberty Loan bonds
$4,000 fourth Loan and $4,000 second
ana third Loans-exempt from all in
come taxes and excess profits or war
proht taxes. Such holdings yielding
AZ per cent. on the subscription price
are. during the period OF the war and
for two years thereafter, on a parity.
with respect to taxation. with the Liberty
Loan avs now selling above par.
The exemption from all income taxes
which Is obtained by subscribers to the
fourth Loan Cup to S30,000) on the pro-
portionate amount of their holdings of
the second and third Loans Cup to S45,-
0OOD, Is equivalent to an additional re-
turn on the investment in the fourth
Loan. With this additional return the
subscriber obtains a return OIL the pro-
portionate amount Of investment in the
fourth Loan equivalent to income from
taxable securities yielding rates rang
Ing from 5.09 per cent. when subject to
the proposed lowest rate of surtax. to
$3.50 per cent. when subject to the pro-
posed highest rate OF surtax.
schin for Peace by victory.
Jacob II. Schiff declared at the Idbertv
Loan rally yesterday on the steps of the
Sub-Treasury that the war Is In effect
already won by our allies and ourselves
or our foes would not sue for peace
negotiations.
The fact remains" said Mr.. Schiff
that Germany's allies have already he
IN law dOuyn a he
ing the sinking ship. We must however,.
continue to battle until we shall become
assured OF peace on terms entirely die
tated by ourselves and our allies-not
peace made in Germany. but a peace
that shall be lasting, because of the
business OF It's terms to ALL
The American sword has been drawn
to teach the lesson that right and not
might must henceforth govern the ma
tons. that the peace we are contehdin1
for cannot be brought about by give ana
take negotiations through which the
strong are to gain aggrandizement an
the expense Of the weak. but rather TO
bring nearer the time the Prophets of
old have visualized: When the swords
shall be turned into ploughshates, bay
onets Into pruning hooks. all strife shall
cease and war shall be no more
ota"oins Hoie, as vi flsgdn'S Heights
and like Moses Of old, looking down into
a Promised Land. which cannot hope
ct my age to enter. yet my eye can per-
ceive how In times to come the sacrifices
we are making now will bear rich fruit
In making this a happier world, will as
sure to our own posterity and to man
kind In general great blessings, because
the brotherhood OF man shall have he
come a reality and selfish strife and
class hatred shall have disappeared.
Shall We for so lofty q purpose not
gladly again ana again come forward to
-u'.'.'' = - -.-.i II - ~ =. - 49,