Republican farmer., 1920-04-30

! go on record as opposed to the grant, 1 ing of bonus to soldiers who served ] in the world war by adoption of l resolution submitted for action by the 1 resolutions committee at the initial l session of it's eighth annual conyen- | tion here today.
 The resolution as presented decIar- ed that mot only half million ne- groes in the south, who probably would receive $500 or $500 each, 1 would immediately quit work until l the money was spent" but predicted | there would be generally t'an orgy of 1 spending" that labor would be dis organized and production decreased. The chamber also received for con sideration report of it's national committee on European finance, in l which it was asserted that while | American bankers and business men are friendly toward aiding in the re- | mobilization of Europe by private in Vestment, no such action can be look ed for until peace has been formally concluded and the Uited States gov- ernment has adopted a definite policy | of sanction and cooperation.
 l Revision of the excess profits and l income taxes ttso that large investors can afford to put their funds in other I than tax free securities is urged in the report, the point being made that 1 only by the freeing of large capital can any appreciable progress toward meeting Europe's needs be made.
 The small investor,' says the re- ports ''is not saving money. He has been influenced by the tendencies to- ward extravaganza which have swept over the entire civilized world since the arn-istice. Closely related to this is the almost universal speculative tendency of the time, which is an insuperable obstacle to the substan- tia1 sale of investment securities among small investors. It is na- tiona1 misfortune that the Ameri- can people are not producing more and saving more, so as to be in a po- sition to be of greater aid to Eu- rope in her hour of need. But the fact is that they are not saving in proportion to the present scale of in come. And even if substantial thrift were being practiced among inves- tors of small means, the resulting funds would not be large enough to meet the present situation without the support of the large investor, who has been substantially legislated out of the investment market as such.
 ''The large investor is largely un- l available because of the present sit uation with respect to taxation. Un- der existing rates of federal income tax, a return of five percent without tax deductions (which can be obtain ed from fully exempt state and muni- 1 cipal securities of prime character) is more attractive than domestic or for eign investment subject to tax-''
 Discussing the need for a fixed governmental policy of sanction and conservation the reports said there l ,f iyocr hat the government alter it's policy of not increasing the $10.O0O,O 100000 it al ready has advanced to European countries.
 'It would appear, however" says the report, ''that the present situa- ton involves more than purely busi- ness considerations and that it's numerous political and social raLniff- cations are of deep significance to
 our own people and to the whole world. In a matter of such tremen- dous scope it does not appear to us sound policy to proceed on an ex-
 tensive scale until definite govern mental sanction and cooperation !s assured.
 '"The American public, observing g the disturbed conditions of Europe and the many political considerations i
 extending credits there. will not be
 inclined to venture their funds in
 such investments unless they know that the undertaking is favorably re- ! garded by the government and is be- s ing carried through with it's approval
 and cooperation.
 Without in any way entering into , the political aspects of the treaty of . peace or the League of Nations, it IS
 necessary in a discussion of the con- 1 ditions influencing American senti-
 ment in. Europe to point out that the
 continued existence of a state of war
 has not tended to improve that conf |: dence in conditions overseas which \ I must always be the basis for forming ; l credit judgments
 gro many thoughtful bankers and . business men in America it seems
 impossible to expect action upon any
 extensive scale along lines of foreign investment until reasonable grounds for business confidence in European
 conditions are restored, and that such grounds cannot exist until this coun- s try comes to some definite political understanding with the nations ot 2 Europe with whom our own economic
 interests are inextricab1y linked.
 "A most immediate and important
 problem for this country" the report continues, "is how to extend further . | credit to foreign nations without | bringing about added imitation al 7 l home It is generally conceded thai : 1 further imitation of our credit struc- . l ture must be checked if commodity ! prices are to decline or even to re- , main stationary. Advancing com I l modity prices would more than off set any gain to European purchasers
 through better exchange rates.
 seWhat is really needed is that any e foreign credits to be granted here
 after be based upon additions to our own capital as distinguished from
 additions to our own credit struc- | ture.
 "In the United States it is quite
 clear that at least two things must happen to improve our domestic sit 2 uation before we can safely grant . further large credits abroad (a)
 The first is diminished home con-
 sumption and the saving resulting ! therefrom, and if possible increased