Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-11-20

II the securities can be disposed Of;
II not. 1t stands at about $4,000 cash
loss to the government.
In the loot were ass Argentine Re
public gold notes, each for 81 900:
rs $1,000 bonds of the National
Leather Company. Al Mexican Petro-
leum bonds. ~ Northern Pacif1cs. 10
American Telephone and Telegraph
and thousands Of other bonds.
Creditors vs.. Courts.
Benjamin NJ. Anderson. jr., Phi. D..
economist of the Chase National Bank
of New York. in an address delivered
before the national convention OF
Robert Morris Associates, spoke very
strongly in favor of creditors com
mittees as compared with bankruptcy
courts.
He called attention to the fact that
the substitution of the former for the
latter had been one of the most sig
| nificant developments of the 1320-21
crisis.
One sees the point of his argu-
ment at once.
The creditors committee. vitality
interested in nursing the assets, that
they may recoup to the greatest ex-
tent possible: creditors getting to-
sether to lend relief and agree upon
a policy which may net a much larger
| hold a customer, at once friendly and
liable to work up to an important
place in trade again.
On the other hand is the law
| courts. with first costs adding to the
| loss sustained; with legal talent out
for what it can obtain. and pounc-
/ ing on assets with first claims. with
! small chance of the net proving even
| worth considering.
The creditors committees in 1920
81 have saved thousands of firms and
not a few new corporations from
n a rl
Had the other measure, the bank
ruptcy court, been resorted to, it
would have been a hard matter 10
tell the tale of disaster to many
| great corporations now fortunately
7 getting on their feet again, none
bankrupt. but unable to realize on
/ slow assets in time to secure quick
assets for their salvation.
There were many close calls and
| there is still much nursing to be car
| ried on to health and continued bust
ness life.
! 1t is. however. difficult for either
| the committee or the court to find
good management for really bad
business.
When it is hopeless. amputation is
| recommended
Calls for $I9.OOO.OOO.
! The Secretary of the Treasury has
asked for the repayment to the Treas
y F. -, L
S19.o00,OOO on Tuesday of this week
| This cash will come out of the pro-
! ceeds Of the certificate sale Of No
| vember !.
Speaking OF Call.
Bankers hold to the belief that the
controller Of the currency is salts
! fled with the legal number of state
| ments from national banks-namely
| f1Ee i year, and that he will abandon
J the six calls that marked the advent
| of his predecessor.
There have been four calls made
| this year. The latest on September
| 6. 50 that the usual interval in the
| siN-call program has passed.
This has led to the belief that the
| fifth and final call of the year will
| be made late in December.
The Sales Tax.
Senator Smoot has this to say re-
garding a sales tax:
when l first proclaimed the viz
! tues of the sales tax. ii seemed as
| though l was lighting the battle
/ alone Since that time, however. SEN
atorS have made a thorough study of
| this great revenue problem, and as a
result more than half have actually
| been converted to the doctrine and I
honestly believe that - sales tax
| will be n reality after this Congress
! or the following one
The republican party pledged itself
to a thorough tax revision, and | can
! not regard the passing Of the present
revenue bill by the Senate last week
as such a revision which the people
of the United States had a right TO
anticipate. l shall do all in my power
TO bring about real revision of the
! revenue laws, and l regard the sales
tax as the one great remedy for all
the evils now thrust upon the Amer
i6Dy1 10 hN- he lou
When the new session meets next
month. Senator Smoot will reintro-
duce his sales tax measure. according
to his implied intention.