Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-27
PROPOSES ACTION
AGAINST BONUS
TO SERVICE men
u. S. Commerce Chamber
Committee Sees Possibility
of "0rgy of Spending"
By the Associated Press.

BY the Associated Press.
ATLANTIC CITY, N. j., April Ct
The United States Chamber of Com
merce would 60 on record as opposed to
the granting of a bonus to soldiers who
served in the world war by adoption of
a resolution submitted for action by the
resolutions committee at the initial res
sion of it's eighth annual convention here
today.
The resolution declared that not only
half a million negroes in the south, who
probably would receive $500 or $500
each. would Immediately quit work until
the money was spent" but predicted
there would be generally IAN orgy Of
spending that labor would be disor-
ganized and production decreased.
The chamber also received a report
OF its national committee on European
finance. in which it was asserted that
while American bankers and business
men are friendly toward aiding in the
rehabilitation of Europe by private in
vestment. no such action can be looked
for until peace has been formally con-
cluded and the United States govern
ment has adopted a definite policy Of
sanction and cooperation.
View of Excess Profits Tax.
Revision of the excess profits and in
come taxes so that large investors can
afford to put their funds in other than
tax free securities" is urged in the re-
port, the point being made that only by
the freeing Of large capital can any ap-
preciabte progress toward meeting
Europe's needs be made.
Discussing the need for a fixed gov
ernmontal nOlicv ri sanction and 20
operation. the report said there was
no thought of suggesting that the
government alter it's policy Of not in
creasing the $4,000. 00o, 900 1t already
has advanced to European countries.
without in any way entering into
peace or the league OF pations," the
report says. cit is NECESSARY in q
discussion of the conditions influence
ing American investment in Europe
to point out that the continued ex-
istence of a state of war has not tend
ditions overseas which must always
be the basis for forming credit judg-
ments.
Further Credit to Foreign Nations.
"A most immediate and importan
problem for this country" the report
continues. rs how to extend furth,r
credit to foreign nations without
bringing about added imitation al
home. 1t is generally conceded that
further imitation of our credit struc-
ture must be checked If commodity
prices are to decline or even to re-
main stationary. Advancing commod-
ity prices would more than offset
any gain to European purchasers
through better exchange rates.
What is really needed is that any
foreign credits to be granted here
after be based upon additions to our
own capital as distinguished from
additions to our credit structure
"In the United States 1t is quite
happen to improve our domestic sit
I-uation before we can safely grant
further large credits abroad: (a) The
first Is diminished home consump-
ton and the saving resulting there
FROM and. II possible. increased pro-
revision of our system OF income
taxation.
Foreign Trade Discussed.
| 1.-THE matter OF foreign investment
has been referred to as not matter
of sentiment, but of arithmetic 1t
is inevitable that the United States.
as a great unit in the worlds eco
nomic affairs, should participate
largely in foreign trade and in for
eign financing.
"But, from the standpoint Of Europe,
the worst possible result at this time
would be to hold out hopes of as
From the standpoint of America. the
worst result conceivable at this time
would be to attempt to set in opera
ton machinery for the extension of
foreign credits which would not, in
fact, operate"