The evening world., 1920-11-13
Business Situation May Nullify
Law Which Capital Has
Complained About,
GO AHEAD POLICY SEEN
Nation Believed ReadiuSting
Itself Without Any Hint
of Panic.
BIZ David Laurence.
ESPECIAL correspo ndent Of The Eve
nina WORLDLY

WASHINGTON, Nov. 10 CCopyrlght
is2O).-Business conditions through
out the United states are more a sub
ject OF discussion among Government
officials nowadays than questions OF
foreign policy or national politics.
The passing of the election has
brought back to some extent the non
partisan viewpoint which prevailed
during the war. Men are not so like
" to express opinions that reflect on
the opposite political party. There -
the beginning here of a real appre-
citation Of the big problems ahead.
For instance, much talk has been
heard about repeating the excess
profits tax. Congress will probably
do something about It in due time,
but the interesting question is being
asked whether the drop in prices as
we'll as profits will not actually re-
duoe the revenues that have hereto
fore been expected from the excess
PROFITS taxes. Some observers have
gone so far as TO suggest that for all
practical purposes the business situa-
ton will before long have virtually
repealed the tax.
On the whole, information available
in the national capital on business
conditions throughout the country
reveals a dlsinclination on the part
of consumers to buy. Stocks have
therefore piled up in many businesses.
Manufacturers who have had orders
cancelled are, however using the OPP
portunity to cut down labor overhead
and to weed out inefficient help.
II seems to be generally expected
that the first Of January will witness
a marked change. With st cks run
ming low, the feeling seems to be that
buying by the merchant will have to
begin and that the consumer also will
find It necessary to join in the buying
procession.
Another reason for optimism in
Washington, however. is the certainty
mat European markets will come
back to America just as soon as fin
ancial stability is accomplished.
Everybody seems agreed that Europe
needs American goods and needs
en- desperately and that the re-
financing of Europe will again bring
full production to American factories.
Yet there is very little said here
about Governmental aid to credit OPP
erations in Europe,
with the election out of the way,
official Washington may decide to
take a more active part in internal
Eonal credit operations, even in ad-
vance of the new Administration.
With the high cost Of living, many
Government employees who originally
got their jobs through political in
duence haven't been especially cnthu-
Siastic about staying in Government
employ when attractive positions are
available IN the business world. The
Republicans will find the houseclean-
ing job they have been promising the
country a very easy task in many
respects, but the hard part OF 1t will
be to get competent persons to replace
those who are every day reslgning to
enter the business or professional
world at higher salaries than the Gov
ernmcnt has been able to afford.
With the excess profits tax falling
OF in revenue and with liquor taxes
naturally diminished, the question of
how the money is going to be raised
is puzzllng everybody. 1t is seriously
advanced by some officials that taxes
will go up instead OF down unless the
tax burden Is distributed over more
years than originally planned. Some
Of the experts say this may tempo
rarily ease the load, but that in the
long run the plan will not prove eco
nomicaL Briefly. now that the cleo
ton is over, Washington is changing
from the political to the economic
phases of reconstruction.