The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1920-11-23
PROPOSE CHANGE.
FOR INCOME Law
Want Provision to Alb
sorb Shrinkage in
Values.

ssoner OF internal revenue, whereby
taxpayers whose lines have been mos
affected BY the price decline nigh
postpone for six months their De.
eember IS installment of income and
profit taxes and whereby the so-called
net loss" provision Of the revenue
act should be extended to the present
year. This would permit business
men to deduct their losses through
shrinkzge in values in computing
taxes due.
The Federal Reserve Board advisory
council held its final meeting Of the
year in this city recently, but it was
the opinion of officials connected with
Il that only congress could act for the
relief Of such business men. The tex
tile industries seem to have been prin-
eiipafly affeeed. and hey are unable,
according to their Representatives
here, to induce banks to loan on their
inventories.
Extensisn q Credit Dlamed.
Extension Of credit by banks to
speculative ventures Is credited In
many quarters with having done much
to KEEP prices unduly high.
Carter Glass. former secretary Of the
treasury and now senator from Vir-
gina. said that he did not consider
action by congress probable, and that
he saw no reason Why the government
should be expected to borrow money
At high rate to pay taxes or extend
payments for business men.
I have heard q great deal about
falling prices" he remarked, but II
find little evidence of it when start
ont to buy coal or lumber or other
COMMODITIES"
Congressional committees concerned
with income tax matters will. how
ever. give the disturbed business men
~ hearing If they ask for Il, il was
learned.
Mr.. Roper's plan for minimizing
the hardships Of the textile men and
Others was made personally in an ad- |
dress recently at Binghamton, N. Y.,l
and was also given to the press in a
formal statement here. He said:
Shrinkags IN Inventory Values.
Because Of financial and Industrial
conditions with which all are ne
quainted, many concerns are going to
experience great difficulty III meeting
ehfs instafiment The tremendous de-
cline since the first Of this year in
the market value Of many staple COM
modities has resulted in an almost IN
preeedensed, decrease Of inventoryI
values. In many instances these
losses exceed the entire net income
fof .lSlS. and the unfortunate COM
panies possessing such goods find
themselves unable to convert their
wares into cash or to obtain credit
u tAeir banks upon their paper profits p
lakes. based upon their paperi profit.
that have never been real
zed. In some Of these cases, underl
he present law. unless il is amended
'efore Dee. IS. il will be mandatory a
'pon the treasury to collect the tax q
" court action through distraint pro- {,
eedings. This would mean financial n
'tsaster in many cases. and should be s.
'bviated.
"A plan should be devised for leeis- :
alive relief for such cases. whether =
rising from inventory losses or from
ther industrial and financial condi-
ions, by deferring the tax payment
Dr. period Of. say. six months, under
UGH safeguards as will extend the
eiief to only such concerns as can
OF pay the tax. Where such pay-l
'ens Is deferred. I would suggest tha,
Re rate Of interest be as high as 8
e. cent. to discourage those who
light improperly take advantage of
'e government under a lower rate
I interest"
Amsn1ment q Net Loss Section.
Ia urging early amendment of thell
4 loss section. to make it apply to
'siness OF the current year. and thus
taxes due next year. the former rev.
ue collector said:
Section 2O@ Of the revenue act pro-
des that ip case a taxpayer sustains
net loss In taxable year beginning
Ter October I. 1918. and ending prior
January !. 1870. such net loss may
deducted from the income of the
eeedins year, or. if necessary. from
: income Of the succeeding, and the
les for that year recomputed accord
Iiy. his revision was enacted in con-
nplat3on Of the period of industrial
J financial contraction which is now
~ 90. bot the contraction did no,
e place within the period specified
the law. The result is that there
now no, provision to care for the