The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-03
PUT MONEY TO
I. WORK; ASSURE
future; ADVICE
New York Bank President
Also Urges Intelligent Re-
vision of Income Tax-Lend
to Foreigners.

tcharles Phelps Cushing, IN Lsslis's.l
Few men can draw their conclusions
upon what is going on in the world Of
finance from such a wealth Of ac-
curate and widely CLEANED information
as can Charles f. Mitchell. president
Of the National City company.
Mr.. Mitchell hesitated to attempt a
forecast for 1920. Then he began,
frankly, to explain the reasons why
how the case hinged on Ifs,
1t seems to me that the difficulty
OF attempting TO make forecast Tor
. any Definite period suCh as Tor lne
coming l2 months of 1890 Is because
OF the impossibility of saying when
certain obviously necessary corrections
viii take place in what are now truly
basic faults,
when viii the public and labor take
steps to Tc-cstablish confidence IN the
minds Of capital that fair play can be
counted upon Surely not until legis-
iation has been passed that assures 70
railway capital fair treatment; surely
not until the public attitude Of mind
toward public service corporations
changes from one end of the country
70 the other while not playing fair
with public service companies who are
struggling along at old rates and with
double expenses, can capital ne expect
ed "a permit flow Of Its money that
win enable such companies to com
mand labor and products essential to
further development
surely, not until way has been
found to lend dollars to foreigners
which dollars can be used In America
In the purchase of goods, can We eN-
meet stable expo rt demand. And I'M
der existing exchange rates we must
certainly look not only Tor falling oil
in exports of merchandise, but also
sooner or later, as foreign countries
themselves get into production, we
must look for increased imports at fig
ures which will make difficult the com
petition Of our own industries When
win the way be found to correct this
situation
$40 the American people realize to
what extent the present surtaNes on
incomes are disastrously affecting the
credit structure And win the year 1920
see such reVisions As To remove the
strangling grip that Is already IN eNl-
denee? II the most favorable railway
legislation conceivable were passed to-
day. and II the public attitude toward
public service corporations were 10
change over night, would 1t he possible
III a big way. 10 finance such corpora
tions 50 long as the present rate or
surfaces on incomes prevails? can
these corporations, which must look TO
fixed maturity lOIlll OF lluAI''l'e 80 ~
resented by bonds and notes. expect 10
mt out such obligations at normal rate
OF interest and have such obligations
taken in a substantial way by the large
investors OF this country, when the
nresent income taxes take from the
or 6 per cent coupon as high
70 per cent Of the amount received?
lvui 1920 substitute financial sanity for
political eApediency in this regard? VIII
our tax laws be SO revised as to cur
tail consumption rather than produc-
ton, which is, unquestionably, the pres
ent trendP
Mote, am not urging a campaign
against spending or against putting
money to work. II We care for Ameri-
ca's future, the sooner we put money
TO work the better
ITO bring this about, nothing. viii
aid more quickly than intelligent re-
gent legislation permitting develop
/, nent OF such vital utilities as the
railroads"