Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-19
BANKER CRHIC|zES
/ FEDERAL TAXATION
Head of American Association
Urges Reduction and Proper,
Outlay
TRADE REVIVAL NEEDED
BY the Associated Press

washington, Oct. 10.-Reduction of
federal taxes, cooperation Of the
bankers in solving the problems of the
,ailroads and economy in government
and private expenditures were urged in
Che annual report of Richard s. Hawes,
nresident of the American Bankers As
sociation. presented today at the open
inc session of the associations forty
,yth convention.
Other recommendations made by Mr..
Hawes were that the transportation act
no amended so that bankers and busi-
ness men could become directors of rail-
roods. that agriculture and foreign
trade be encouraged, and that steps be
taken to relieve the present industrial
unrest. ~,
Taking up the tax question:, Mr..
uavps said the need was not only for
reduction of federal taxes, but also
for n most careful supervision Of the
Expenditures of the proceeds of the
taxes.
"A slogan recently coined" he said,
"is appealing: More business in gov
ernmcnt,, less government in busi-
ness.
Mr.. Hawes declared that mo tax it.
self should interfere with the accumu- :
iation of wealth, or the development Of
the industrial life 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"
Mr.. Hawes hailed the enactment OF
the transportation act as "a distinct
financial victory" He declared that a
vast sum of money was needed for the
railroads and that this could be made
available only through the CO. o-operaticn
of the financiers of the country, en-
couraging the investing public and guild
Ing their judgment. He sounded an
optimistic note regarding industrial un-
rest. expressing the opinion that there
was needless alarm that America would
see changes in its industrial society
similar to those undertaken in some
other countries. ,...
Extravaganza Blocks Revival
Declaring that production in the
country is now somewhat above the
pre war level and showing indications
of Improvement, Mr.. Hawes said the
real difficulty has been in unbalanced
production.
"The orgy of foolish extravagances,
the speculative consumption which has
preyailed in the United States and is
vet too largely evident" he said, ''must
cease if we are to obtain a permanently
strong position in world trade?
In recommending the encouragement
and development of agriculture, Mr..
Hawes declared that all bankers and
business men should know that less than
thirty cents of every 800 spent by the
government last year was expended for
the development Of agriculture.
at is the bankers duty as a citizen
and financier to realize and encourage
this source of our wealth; to lend coun
| sci and assistance and to regard the
farm in its true Importance to our
economic existence"
Stressing the importance of the ma =
tion's foreign trade, Mr.. Hawes said
that without hampering the require
ments of American industry and busi-
ness. the bankers must find a means
! Of extending liberal credit for foreign
trade without further initiating the
| American credit structure.
Meredith Pleads for Farmers
Shrinkage in the value of farm prod
ucts so far this seQson will result in
American farmers receiving $4,000, 900.
600 less than they would have secured
on the 1920 price basis, Secretary Of
Agriculture Meredith told the bankers
He estimated that the fall in corn prices
had involved a billion dollar loss tc
producers, while the decrease in cot
ton prices amounted to a third OF 9
billion dollars. The situation was fur
ther made harder for farmers, he said
because the labor and materials neccs
sary to crop production had been sup
piled during the high price period.
The American people must see t.