Evening star., 1920-11-15
TAX AID UNLIKELY
BY RESERVE BOARD
Officials See No Way Of Help
ing Business Firms Meet
Next Payments

Discussion Of aid which may be
extended business firms in raising
funds to pay the last installment in
their income and profit taxes for
1919. due next month. was expected
to take up part of the time of the
advisory council of the Federal Re-
serve Board. holding it's last. meet
ing of tie year here today. but Off
cials held out small hope that any
method could be found that would
change the situation.
In appealing to the income tax divi-
sion of the government for some re-
lief from the payment of the tax in
stallment, which must be met December
Is, business men. particularly those Of
the textile industries, have said that
the banks will not loan them dollar
on their inventories: In reply to this
bankers said today that to grant addi-
tional loans Of depositors' money on a
falling market would be poor finance,
and that the security offered and not
the need Of the borrower must govern
the banks at such times.
Congress Alone Can Give Aid.
OficiaIs Of the Treasury Department
! insist that the only relief, IL any is to
be had, lies in Congress, which meets
ten Gays OeioTc TIC Ia hAoenHhchl %
due
"Action by Congress in that period
is possible, but not at all probable.
said Senator Carter Glass of Virginia.
former Secretary Of the Treasury. to-
day. "I have not heard the subject
discussed much, but I do not see how
the government could be expected to
borrow money at high rate to pay
taxes or extend payments for busi-
ness firms. / have heard great deal
about the falling prices, but find
little evidence Of 1t when 1 start out
to buy coal or lumoer, or otner COM
modities."
Secretary Of the Treasury Houston
| is out of the city, but will return
Wednesday, when. 1t is expected. he
will take up the matter Of income tax
payments
Congress VIII Give Hearings.
Wholesalers. big retailers and many
manufacturers. who are seeking an
amendment to the tax laws. changing
the inventory provisions because of a
shrinkage of values this year. will be
| given a hearing by the congressional
| committees dealing with such mat
| ters. it was said today, II they come
to Washington.
| Senator McCumber of North Dakota
and Senator Curtis OF Kansas. both
members Of the Senate finance COM
| mittee. said today that undoubtedly
any case presented by the dealers and
| manufacturer would be given con-
Federation They were not willing tc
predict what the committee would do.
All the facts would necessarily have
to be laid before the committee be.
| fore 1t could reach conclusion. they
said.
IL has been said that serious finan-
cial difficulties threaten some of the
large business houses of the coun-
trv narticularly in the textile indus
tries. because of the final installment
of income and excess profit taxes
| which must be paid on December Is.
The goods which they have on hand
have shrunk in value, they are ex-
periencing difficulty in raising money.
Would Charge Losses Against Taxes.
| Some are anxious to have the gov
ernment allow them to charge up
their losses against the taxes due FOL
this var. 1t was suggested today thai
Congress might pass a resolution gip-
| ing them an extension of time iI
which to make the payments.
Under the law, it was pointed out
any losses sustained this year couls
be charged off against the income ta1
and excess profit tax returns sub
mitted for the year 1920. Doubt wal
expressed, however, that permission
would be given to charge these losse
off against the taxes due for the yea
1918.
gress would be opposed to permitting
any injustice to the manufactured
and dealers, it was pointed out ais,
that many of these concerns hav,
made larger profits within the las
few years than they ever made be
consideration in considering the mat
ter.