Republican farmer., 1919-09-05

thus reducing the quantity of funds available for private enterprise. A collateral turning to get rich quick" schemes is noted.
 Space is devoted in the memoran- dunn to the effect of the tendency 10 buy non-taxabl securities, or at least those yielding high rates, upon our export trade, the banker arguing that thus we do not buy as we should, the securities of foreign na- tions to which we wish to sell goods. while this attitude initiates further against our capacity to come to equal England as an international money center.
 Furthermore" he continued, "a very unfortunate impression is creat- ed abroad by the fact that a time when we alone are capable of sup plying the nations with urgently needed funds, we fail to do so ade- quately, and when We do accord loans tC foreign countries, exact very oner- ous conditions. The fault is attri- buted to the American character. when, as matter of fact, the cause apart from natural cOnditions-ls primarily due 10 our taxation measures.
 The housing famine and the re- sulting hardships and high rentals are due, in considerable part. to the fact that the private investor, gen orally speaking, has withdrawn from the field of real estate mortgages. because they do not yield him a suf- fciently attractive return after taking into account the income tax.
 My criticism is not of the magni- tude, but of the method of our tax measures. My point is that we haN e emitted to impose certain easily col Iected, greatly productive and well tested taxes, such as-to quote only one minor, but characteristic in stance-a stamp tax on checks, and have grossly maladjudged others with the result that our revenue legisla- ton has largely contributed to throw our economic equilibrium out of gear to the detriment of everybody, and particularly to the great cost and damage of the masses of the people. I realize, of course. that even if strict governmental economy is practiced, we are faced with the necessity of raising a vast sum of money an- nually by taxation. But I am con vinced that the needed amount can and should be raised with far less complexity, vexation and economic disIocation and disadvantage than have resulted and were bound to re- suit from the revenue measures now in force"
 Another suggestion to the memor- andum is for the creation of a Fed eraI Bureau of Salvage. MT. Kahn stating that he learned in England in 1918 that a similar body there had saved the nation in three years S5O0,- OOO.OO0 The thrift lessons of the war. the financier adds, are being unlearn- ed rapidly and the teaching of thrift therefore is suggested as further function of the proposed bureau.
 A general staff on economies dur ing the readjustment period is the final suggestion, MT. Kahn writ ing:
 It would seem to me that the ap- pointment by the Government of one or more nOn-political commissions, consisting of business men, working men. farmers and economists, for the purpose of making studies and rec concentrations on a non partisan basis, would still be of great ad- vantage to the country at a time when grave economic, social and fi- nancial problems are pressing for so- lution and both the Executive De partments and Congress are greatly overworked."