New-York tribune., 1921-01-23
us. Trade Pact
With Allies Is
Urged by Kahn
rnusworth Also Indorses|
Reeipreeal Agreenaeats|
With European Nations
10 Restore the Markets
AK Repeal Of Surtaxes
Banker Suggests Gradual
Iiauidasien Of War Debt
81 Elastic Stalking Fund

s.narnte reciprocal trade agreements
Lax Zach OF Americas allies in the
~.y ~.,s snd gradual amortization Of the
..untry's war debt through an elasue
.;rI3sf }uAd were advocated vesteraay
~ Tspxesentatiys Nicholas LenSwoFth,
= Ne House Ways and Means Com
mis{se, and Otto Il. Kahn, OF Kuhn,
Loneworth and Mr.. sKahn we're
.,saIsrs at the Saturday luncheou
ss,sn 81 the National Republican Club,
ks r. West Fortieth Street, during which
S;,trsjiy every phase Of Federal taxa
,;os e ii is and sheuld be was ana
i.ssa s Dr.. Thomas Sewall Adams. pro
X.ssex 81 Political economy. ct Yale and
teySsrly Tax Commissioner for the
ss.is "a Wisconsin, and Dr. Hugh SAT-
e.,sss. author Of the regulations Prs-
.e,ibine the procedure under which the
FsSsraf income tax is collected, were
other speakers.
.em 81 naticnal taxation for pssss-times
unr,oses Is "intelefable," advocates
tie yepeal Of the excess profits taxes
and ! SEDUCTION in income sureharge
tsxss. sgd opposed the issuance Of any
NOR % 5onds 70 discharge the present
nosSag 1ebt.
KahA Urges Sales Tax
Nh. Hshn also recommended try-
out aa ths sales tax plsn-a turnover
on esmmedities from producer ell the
way through to the consumer, and not
= tsx ON Tetaii sales only. DR.. Adams
serisasly questioned the advisability Of
ereatiaG new tax laws which would
msfavisily change the present methods
q esasssment on the ground, he said,
It'll tie surest check on public sx-
penliiufes are "onerousp taxes.
III conceived taxation, said Mr.. Kahn,
Excessively concentrated on business
and Individual aceuMulation, and caus-
ing, amens other things, malfunctian-
ing n ths Investment market and great
scusrylpe of capital into tax-exempt
secuyjtlss, has Y9qvestioHably been .
ssppG influence in helping to bring
about the Ills that beset us and ia
Broadening their harm and intensity
ing tbeiF nslignity."
The thought and purpose underlying
the fseai policy inapgurated in 1911,
The ARanciaE declared, twas crudely to
take II cut Of the rich.'n
sAAa bow has it worked?" he asked.
"Ths Heh, it is true, have besn incpH-
yeniepesd and Handicapped, but far
meye inconyenienced and Handicapped
hasa bean trade, industry and agFi&nl-
tuTe, and the greatest hArdships from
the fesulting conditions have falien Nm
foftpaately on those Of smsli bnd nod
erasA means.
II 10 an old and sad truth that the
effect Of economic biundering BY gov
siuwents is always felt NEST by these
least able to protect thsNseiyes. The
revenue measure Of 1917, yssnacted
.s.sensislly. unchanged fer 1918 and
lnp, stands disclosed as Z breeder Of
Hsys harm by tbs inexoTable test Of
actual experience"
With regard to remedies. Mr.. Kahn
\ shall assume that the sggregate
required to be raised by taxaffon for
nj ssssss1h.ss sssi sssI Il yis 6oo M o s =
iisss With Professor Edwin Seligman
that u y rot necessary to consideF
"ursslyss yiaidly obligated TO set sside
some Ssee, OPT, 600 eaeh year as . sink
Ing fpnd to stnortize the war debt
\ can see no reason why that debt
sheqla be tetiyed with undue rapidly.
thjlt ge shapld be perfectly jpdtified
IN Heattpg the sinking fund provision
elastically; that is to say, when times
are good and revenues abundant. all
ment that fund literally and, on the
ether hand, in leap years such as the
PRESENT one Is likely to be, suspend its
oEsrasiaHs in whole OF in part::r
fe said there was, in his mind, only
one gsy to fad out who is right in the
eoselet Of opinion Feearaing the turn
over TAX, and that was to test it in
actual practice at a rate 30 low that
no slPteeiable harm would result in
tae eylat It turned out to be the wrong
shiAg He doubted il > retail sales tai,
ssssn ak 2 rate four or fiYe times as
hleA ~ the one-third per cent turnover
nx which he urged. would be ada
qaasely pyaduetiye of sevenue,
y y Head Values Shsuld Rise
NJ Kahn alluded to the depreciation
i Liberty and Victory bonds, He
leaiifed, he said, the moral and prac-
ueal 4estssbiiity of the aim to restore
y seMe method the wprth Of these
esaee, bpt he knew Of nothing that
sepM wisely and effectively" Be done
- efeempIish the purpose In view at
mle rage. II the government finances
sss eesdqetsd with due regard henee-
ens - 70 economy and conservatism and
wv Sxatlon system is revised on
.sallple lines, he added, and the gov
slneat's credit carefully guarded
y nstural tendency Of the prices OF
neegsy bonds ought to be distinctly
uSssFd In the eeming year"
.Ar tengworth said the excess profits
A I'D the heavy surtax must be elm
Mssed - seen ~ possible. He did net
az TO place himself on record a.
,ss4ySps ? general sslss tax, but re-,
ssske9 that the plan was greatly
nsxins IN popularity" He suses sc 4
shsal sales tax, bat enc very small. II
~ necessary, he said, to reducs the
1sone tax ia some manner,
nie ivhe qsestioa to be segsidsred, the
me member Of Congress asserted, was
sa1s ssliest EprePe's 9eht Of sl4,-
w sepntFy, be said, woufd mean this
ssRys economic ruin. He favored
s1tsneien Of Amerisa's foreign
~ tut he siso favored nnaintainjn1
- AsMs market intact. hseiproen
~ eeresmsnts with each Of TIE Al
~ declared, would isayen the In
seHcHal situstiop and ct the same
~ saofd tbs projection desired. 4
r. revision Of United States prot4c-
Mytn schedules, ths spssksy sdd-
s1swovla pot incresse the custema Fev-
sNyts which kAye ahamn = evraak "A.