Every evening, Wilmington daily commercial., 1920-10-19
URGE REDUCTION
7; OF FEDERAL TAXES
American Bankers, in Session at
Washington, Hear Vital Prob
lens Discussed.
nv Associated Press to Every Even ing

Washington, Oct. lo.-Reduction of
federal taxes. cooperation of the bankers
in solving the problems of the railroads
and economy in government and private
cNpenditures were urged in the annual
report of Richard s Hawes, president of
tAa American Bankers Association,
which was presented today at the opening
session Of the associations 10th con-
ventlon.
Other recommendations made by Mr..
HasveS were that the transportation Act
be amended so that bankers and business
men could become directors of railroads,
that agriculture and foreign trade be on
couraged and that steps be taken to
relieve the present industrial unrest.
Taking up the tax question, Mr.. Hawes
said the need was not only for n reduction
Of federal taxes, but also for a most care
full supervision of the expenditures of the
proceeds OF the taxes.
"A slogan recently coined" he said, lis
appealing; More business in government"
less government in business
Mr.. .Hawcs declared that .no tax itself
should interfere with the accumulation of
wealth, or the development of the indus
trial lifc Of the nation.
ANY tax system which discourages
savings. which discounts accumulation
OF capital. is to be deplored,' he said, ''for
all capital is used and enjoyed primarily
by society at large and not particularly
by the one in whose legal title its ownership
rests.
MIR. Hawes hailed the enactment Of the
Transportation Act as "a distinct VIC
tory He declared that a vast sum of
money was needed for the railroads and
that this could be made available only
through the cooperation OF the iinancleTs
oi the country, encouraging the investing
pphlc and guiding their Judgment.
'"The passage OF the Transportation
Act. he said. 'has taken railroad sccuri-
ties out Of the highly speculative field and
stabilized conditions SO that just returns
on investment may be received and proper
service rendered the nation.
Bankers and business men, he continued
should he permitted 70 serve on the boards
Of directors of the roads, regardless of
their dealings with the railroads, but they
should hc charged with full responsibility
in their duties
Mir IIawes sounded an optomistic note
rig-lr ding industrial unrest He expressed
. the opinion that there was needless alarm
that America would see changes in It's
industrial society similar to those under
taken IN some other countries.
With n prospective decrease in prices
ard increaSein IN the disposition Of industrial
tral and labor leaders to recognize their
mutual obligations and duties, both to
zach othcr, and the public, Mr. Hawes
continued. we may reasonably look for
ward. without alarm, TO better adjustment
of the forces Of labor and capital
labor by fomenting strikes, cncorrag-
ing disagreement with employers is, in
fact, striking at the heart Of its own future
progress, and impairing the prosperity Of
the country. Capital should recognize
the results Of the toilers and improve
wprking conditions and wages in ratio TO
the production and investment. Every
man should be free to work out his own
salvation and not be bound by the shackles
Of organizations to his detriment"
Declaring that production IN the coun-
Try Is now somewhat above the pre-war
level and showing indications Of i'm
provement. Mr.. Hawes said the real
difficulty has been in unbalanced produc-
tien. The diversion Of productive forces
into certain restricted channels demanded