New-York tribune., 1920-12-03
40 Bond
Issue Urged to
Fund L. S. Debt
Chairman .McFadden Of
Banking aud Currency
Committee Favors Move
TO Reduce Tax Burdens
Hits Excess Profits Levy
[. 5. Suffering From De.
pleiion of Capital by
Huge Drain, He Asserts

r~,~, TO -rshsreis Washington s4reau
VASAINGTON, Dee. o-Refunding
80 national deb. over period Of al
lsssr forty years. With the new govern
r.sa. bonds bearing 5 per cent interest,
: par. q comprehensive financial
posov outlined in an interview for The
Tribune today by Congressman Louis
:. NcFadden. chairman Of the House
Rarsirz ana Currency Committee. Mr..
NcYa1den favors repealing the excess
vrotits tax az once. and making drastic
cu.s II tire expenses OF operating the
government.
"Tr,s country IS suffering from loss
q caniral which has been brought about
av 80 demands Of the government for
purposes q Var and governmental ex-
psases. he said.
~Nhsn these demands began the
earnings and ordinary investments IN
industry were diverted to the require
r,arts q the government and because
@. ire var conflict and the needs for
inves nsrt IN a similar manner Of the
surrius Investment capital Of the
countries o the world. that amount
vricl was coming TO US from these
countries for lnvs stmsnt in our securi-
tes tor the upbuilolng and develop
rrsnt O. our lrGustr .es, railroads. etc.
Immediately stopped aud for the last
:car to SIX years the upbuildins of
our CAPITAL account has ceased almost
entirely. because this money las been
diverted . government loans and taxes
vaicA we're Placed upon ministries,
a lr1aCs and individuals, so that to-
d. ve are confronted with a situation
=, E,
before.
Capital Needs Repletion
Because Of this fact The continued
imposition Of these wartime taxes and
tha increased cost Of dong the bust
ness q the government make it par
tcularly pertinent to the average bust
rsss man at this time that ways and
means should be provided FOR inprov-
irg and aiding the rehabilitation of this
capital account. thus enabling this
cola.rys business institutions to get
back 70 a normal equilibrium. so that
-heT nay not only meet and discharge
The possibility Of proper production,
IL. tha- .hev may provide The neces-
sarT net earnings to meet the contin-
ued demands for Increase of capital &C
coun- and pay their proportionate
share - the tax burden, that the gov
er7nent5 own nnanclal situation may
0e improved.
zone OF ne first items TO Re dis
crssei N this connection is based on
~ -heOry that government Expenses
ard axes mus be raduced. We come
70 ~ question o. the requirements Of
-.e government. and II this connection
~ 1rd that the Secretary o. the
Treasury makes the statement that
- c-rrant expenses % .he govern
rsn- earno. be redueed below the sum
C: = oo1 1o0. coo annually, ard re are
o-f-cr-ed With the estimated income.
--csr existing statutes. aa follows:
I-co--e ~ .rd!vtuzls 11-2lo o0o 100
IE-1--s TX -po-e-ions. $50 10o o4a
--oSrs -sxes....-.-.-.. 90 100 40
Or internal revenue -ax=s ! 17so noo 600
Cgs.o-s Observation-Disclosures. $4,000. 800
e l1.zrst miscellaneous re-
csssit-=s including salvage,
.-,--=s- o1 loans 70 Allies,
-ec1-n - "a Virsi investfrerr
II VA finance Corporation
acl grain corporation, Tow
among the inves-nlen held
b the Treasury ....'..... $50 100000
j. ................. 4s2.5oo. 600
-o-al ...................s $3.50. 500 coo
r=-- ............... 4son.ooo.too
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