The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1920-10-20
BANKERS DISCUSSING
TAXATION AND FINANCE

Z
federal taxes, cooperation of the
bankers in solving the problems of the
railroads and economy in government
and private expenditures were urged
in the annual report of Richard S..
Hawes, president of the American
Bankers Association, which was pre-
sented at the opening session of
the associations 10th convention.
Other recommendations made by
Mr.. Hawes were that the transporta-
tion act be amended so that bankers
and business men could become direc-
tors of railroads, that agriculture and
! foreign trade be encouraged and that
steps be taken to relieve the present
industrial unrest.
! Taking up the tax question, Mr.
Hawes said the need was not only for
reduction of federal taxes. but also
for most careful supervision of the
expenditures of the proceeds of the
taxes.
"a slogan recently coined" he said,
"is appealing: More business in gov
ernment; less government in busi-i
ness.'"
Mr.. Hawes declared that "no tax it
self should interfere with the accu-
mutation of wealth, or the develop
ment of the industrial life of the ma
ton
"Any tax system which discourages
savings, which discounts accumula-
tion of capital, is to be deplored," he
said, "for all capital is used and en-
Ijoyed primarily by society at large
and not particularly by the one in
whose legal title it's ownership rests"
Mr.. Hawes hailed the enactment of
the transportation act as "a distinct
| financial victory" He declared that
a vast sum of money was needed for
the railroads and that this could be
made available only through the CO.
operation of the fnanciers of the
country, encouraging the investing
lpublic and guiding their judgment.
'The passage of the transportation
act" he said, ''has taken railroad Sc
curities out of the highly speculative
field and stabilized conditions so that
lust returns on investment may be re-
ceived and proper service rendered the
nation"
Bankers and business men. he con-
tinued, should be permitted to serve
on the boards of directors of the
roads, regardless of their dealings
with the railroads, but they should
be charged with full responsibility in
their duties.
Mr.. Hawes sounded an optimistice
note regarding industrial unrest. He
expressed the opinion that there was
needless alarm that America would
see changes in its industrial society
similar to those undertaken in some
other countries.
with prospective decrease in
prices and increase in the disposition
of industrial and labor leaders to rec
: ognize their mutual obligations and
duties, both to each other. and the
public," Mr.. Hawes continuedy we
may reasonably look forward, with
out alarm, to better adjustment of the
forces of labor and capital
Labor by fomenting strikes, en-
cou1aging disagreement with en-
ployers is, in fact, striking at the
heart of its own future progress, and
impairing the prosperity of the coun.
try. Capital should recognize the re,
> suits of the toilers and improve work
{ ing conditions and wages in ratio tc
the production and investment. Every
, imam should be free to work out his
own salvation and not be bound by
the shackles of organizations to his
detriment.''
Declaring that production in tn,
country is now somewhat above tn,
lpre-war level and showing indications
of Improvement, Mr.. Hawes said tn,
real difficulty has been in unbalanced
production. The diversion of produc
tive forces Into certain restricte,
channels demanded by the war still i
Having its effect, he continued, AM
the nation has not yet been able t,
; lre-align these forces so that the sup
lply and demand of goods are normal
lly uniform.
Increased production" Mr.. Have
went on to say, is not nearly so mucl
a cause for concern as is more eco
nomical consumption. The orgy o
, foolish extravaganza, the speculative
! consumption which has prevailed il
the United States and is yet to
, largely evident. must cease if we ar
. to obtain a permanently strong posi-
ton in world trade"
In recommending the encourage
ment and development of agriculture
Mr.. Hawes declared that all banker
and business men should know tina
less than 80 cents of every 800 spen
by the government last year was ez
pended for the development of agri
culture.
"It is the bankers duty as citize
and fnancier to realize and encoul
age this source of our wealth; to len