The Washington herald., 1919-03-18

people must put their hands In their
pockets, so that 1t might be the more
quickly ended. Now the only ap-
peal that can be made Is to be. bas-
ed upon the need of the government
for money so that war conditions
can be liquidated, and also the fur
ther' appeal which will be based up
on the knowledge people have al
ready gained of the safety and the
reasonab BILE income which an obliga-
tion of the United States represents.
All Kinds of Fiaaneinx.
Even financiers who, have had
long experience. some of whom have
been occupied in untangling difficult
railroad propositions based upon the
intermingling of all kinds of securi-
ties. speak with a queer sort of
smile of the peculiar financial and
money conditions which now pre-
vail. Here is the government COL
lecting six billions in taxes. Prob
ably the expert lawyers of the
United States never had more diff-
cult work to perform than has been
the case since the new revenue bill
became a law. The government
wants taxes to be paid, but have
furnished no blanks by which the
corporations could be guided. The
light has burned late in some Of the
lawyers Offices who have been re-
tained to show the corporations and
the individuals what their tax obli-
cations are. In many cases the best
that could be done was to make an
estimate OF the probable amount of
taxes which the government had the
right to collect SO that a tentative
payment could be made to the tax
collectors. All are making the best
of ii, but IL these taxpayers spoke
freely in public as they do in pri-
Vate they would say that 1t Is their
opinion that the government has
bungled greatly in this matter al
though insisting. in spite of this
bungle, that some part Of the tax
must be paid at once.
Talk of Banking PoeI.
or course the banks have been lend
ing money to corporations and indi-
viduals who have taxes in large
amounts to pay. Coincident In point
of time is the attempt OF the govern
ment to persuade the people to sub
scribe for 5000, 600 of short-time
notes, these being in principle IL not
in terms practically short-time bonds
/ Now comes the railroad situation
and the imperative need because OF
the peril OF dangerous confusion and
Decentralization, that at least 500 0OO, ,OoC
be secured with which to meet the
situation. There is talk of a banking
pool. there is suggestion that the
Federal Reserve Bank help out, there
is somewhat queer proposition that
the government issue vouchers to the
railroads which the railroad COM
panies can make use of as collateral
security II the banks will accept the
security for loans with which to make
/ good this lack OF $50, ,ooo, 900.
Wise Guidance Needed.
| At the same time there come into
the market various propositions in
NolvlnS the underwriting for indus
trial corporations of issues of notes.
American banks have underyritten
recently what amounts to a $4,000, 600
loan to Belgium. Our bankers are al
ready considering whether il be ex-
pedient to convert notes issued by
other countries and marketed in the
United States into longtime bonds.
And in addition there is an appro-
| priation Of s., E,o0oO00.0oO whereby the
farmers can receive the s226 a bushel
I for their wheat. and, Furthermore, ii
Is presumed that we will extend large
credits to Great Britain and other
countries, so that they may be able to
pay for the purchases they will be
compelled to make in the United
States. For these reasons the situa-
ton Is spoken OF as confusing and ut
terly without precedent. Yet there are
/ billions OF money in the country. so
mat nothing is needed but wise guild
ance in order to make our money and
our credlt avail HOLLAND.