Evening star., 1920-11-19
Secretary of Treasury Look
ed to for Data to Support
Postponement Demand.
OFFICIALS KEENLY ALIVE
TO NEEDS OF BUSINESS
Houston's Report and Recon-
mendations on Law Revision
Awaited With Interest.
ny N. O. MESSENGER.
BY N. O. MESSENGER.

Intimation comes from responsible
quarters in the House of Representa-
tives. which is the source of revenue
and tax legislation. that there is pos
sibility of action at the December ses-
sion of Congress to postpone the next
maturing income tax payment, for
which there is such widespread de-
mand.
1t is indicated that if the Secretary
of the Treasury will Immediately
upon the reconvening of Congress
supply the committee on ways and
means with data supporting the de-
mand for postponement and officially
recommend such action. it would be
quite within the range of possibilities
to pass a resolution to that effect
through the House and Senate before
the payments fall due, December Is.
Treasury Advice Recognised.
Otherwise. 1t is said. it would be
committee to initiate action. as that
would involve holding of hearings to
develop the facts and prove the ne
cessity for the legislation. More
over. 1t Is pointed out. the commit
Ice would not feel authorized to take
the first step. without knowing from
the Secretary how the government
is fixed. financially" and whether he
will need the income tax payments to
meet obligations of the government
falling due in the future.
1t is stated in authoritative con-
Sressional circles that there Is no
lack of knowledge among members
of both bodies of the demand for post
possessing that information even at
first hand from the prospective VIC
Tins of the situation does not neces-
,sarily arm the committee on ways
and means with license to proceed to
amend the statute without recommen-
dation from the officials charged with
enforcement of the law.
Basis for Confidence.
This widespread acquaintance by
representatives and senators with the
state of affairs existing in business and
the crisis presented by the maturing
taxes is the basis for the confidence ex-
pressed in congressional circles that i'm
tained upon the official recommendation
of the Secretary Of the Treasury. The
subject would need no el,sciAAa5er In
debate. it is said, and even that branch
of Congress charged with propensity to
prolonged discussion would find little en-
couragement in this instance.
Treasury officials are more keenly
alive to the predicament OF business and
heavy taxpayers than even the congress-
men. 1t Is said that the hard luck"
6tOTicS WHICH OtSfWucIfu Tic 1TSASVIy
people would melt a heart of stone.
Business men come in, almost with
tears IN their eyes, to complain that
they have not the money to pay the
tax, that the banks will not lend them
the sums, and that they face being
penalised and adding further to their
debt to the government.
New Angle to Situation.
There is a new angle to the income
tax payment situation. The dry goods
people have taken the initiative in
provisions of the revenue act which
provided crediting net losses sus-
tanned. Omitting technicalities, the
point is this:
the period between October 81, 1918.
and January !, 1920, net losses sus>
tanned might be deducted from the
net income of the taxpayer for the
preceding taxable year.
That provision was adopted to take
care of possible depreciations follow
ing the ending of the war. 1t was
supposed that II there was a slump
it would come within the period
stipulated, but in point Of fact 1t
did not fall out that way. The high
prices continued during the time
specified and the losses were incurred
later than the taxable year included
in the provision.
Want Limitation Extended.
The dry goods men now want Con-
Eress to extend the limitation beyond
January /, 1920. so that the provision,
designed for the benefit of business.
shall not be vitiated because the losses
hung fire" until it was too late to take
advantage Of the beneficent provision.
OF course. the benefit is not restricted to
any one line of business. but the dry
goods interests seem to be taking the
lead in the movement
Secretary Houston's forthcoming an
nual report is awaited with unusual in
tercst. especially with respect to his
Recommendations on the financial stu
a,ivn and income tax law revision. Ac-
tion with regard to the postponement of
the income tax payments would, il il
expected. be suggested in n special
communication to the chairman of the
ways ard means committee. IL the secre-
tary finds the necessities of the case
demand il and the financial condition
of the government warrants
As affairs stand. then. he is restricted
by statute from acting; Congress alone
can afford relief by authorizing post
ponement and Congress does not feel
d .sposed to act unless the responsible
.yercy of administration recommends