The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-07


that many of them show the effects Of
the strain. Those who attended the re-
cent banker convention at Chicago
were impressed with the worn faces Of
the delegates. scores Of whom told OF
lost weight and mental strain. 1t has
been no easy work for the bankers Of
the country to weather the financial
storms Of the past year. and although
they have succeeded In meeting the re-
ouirements of an extraordinary situa-
ton the strain has been acute. This Is
because the bankers are now in the test
ing period, and the profits Of the next
two or three years will be governed
largely by TIE wisdom OF the course that
they pursue to-day. The problem Is not
only to distinguish between borrowers
whose demands represent essential or
non-essential enterprises; the difficult
thing is to tell how far credit should be
restricted to essential industries stocked
up with raw material purchased at rec
ord prices.
IL Otto II. Kahn is right in his con-
tention that the new revenue bill will
penalize success in running counter to
many tested principles Of war taxation
the banker has a difficult task in judy
ing the ability Of his customers to keep
their heads above water. The fortunate
thing Is that our business structure is
very sound and that the country's bank
position Is well fortified. The outlook
Is confused. however, and overshadowed
by a war hazard which although less
threatening than formerly is neverthe-
less the controlling factor in all business
enterprise Enactment OF the new draft
law has also exposed TO war service
several million men who previously were
beyond the reach Of the draft boards.
The Government will have to call to the
colors many Of these men. and while the
effort will be made to extend the exemp-
ton privilege to protect workers who are
engaged in tasks vital to war making
the effect of the new regulations win
be to withdraw a large body OF men
from productive industries which are al
ready Handicapped by reduced working
forces.
Government Expenditures.
Secretary McAdoo went on record last
week as saying that the actual expendi-
lures Of the Government during the pres
ent fiscal year will be- at least s24 .o0o.-
900. 900. The Secretary added that the
Treasury disbursements since the orig
iAal estimates were formulated strength
ened his belief that the huge total under
stated rather than ovsrstated aggregate
OUTLAWS in the fiscal year ending June
80 next. In order to avert financial
disaster" the Treasury head asked that
the collection OF the income and prof,
taxes should not be deferred later than
the dates fixed in the House bill. The
up the work of revising the bill SO that
it will be placed upon the statute books
with the least delay.
The Senate Finance Committee has
the measure under discussion and unless
all signs fail will recommend important
| changes. Should Ii be decided to enact
the law before the November election
the probability is that the leaders would
have to revise their plan for a Senate
recess beginning October 20. Every one
wishes to provide the Government will,
whatever money It needs to finance the
war enterprise There is perfect agree
ment on that point But the critics OF the
bill are fearful of another kind of "fnan.
cial disaster" should the proposed tas
be found SO onerous as to impair the pro
ductivity Of the nation. This Is the mos
burdensome tax law that any Govern
nnent has attempted to pass, and because
OF the honest differences of opinion
among those who are wholehea rtedly
supporting the Presidents policy of con.
Quoting the war. the coming discussion:
OF the measure will be exceptionally in.
teresting.
4 What IL Ahead.
The world war now at Its most in,
teresting stage. The next three months
will tell remarkable story in the work
OF cleansing the world" as Premier
ClemenceaN declared In his notable ad
dress Of last Thursday describing the
last sacrifices caused by the supreme
commissions Of savagery." In the ligh
Of what has happened since July IS 1t Is
apparent that the battle Of Chateau
Thierry, In which our troops upheld the
best traditions OF the American army
will mark an important turning point o
Inc war. This does not mean that thu
end of the war is in sight-there ar,
definite indications that this Is not tn,
case-or that the financial markets will
soon be called upon to reflect the lorna
calling together of a peace conference
There may be several Liberty loans is
sued before the American Government
, has completed its task of financing tn,
. war.
But the one thing certain is that from
now on the markets of the world will
be taken up with rejecting the change
, of returning peace. These will be o
great importance and in some aspect
quite as interesting as have been tn
problems OF war and the complication
which have resulted from them. s.
much has happened since August, 1914
that II is difficult to recall the position
OF the markets when the conflict began
This country within four years ha
I gained on balance more than $1,000. 900,
, 900 foreign gold. 1t has built up an ex
, traordinary foreign trade. II has pro
. duced bountiful crops and It has broke
all records in the production of ocean
going ships. This activity in shipbuild
ing will give II splendid merchant ma
! rine to fall back upon when the war |
I over and the whole world will be callin
, for shipping space.
D