South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-12-13
TAX EXEMPT SECURITIES.

Shall money be taxed into private industry be.
permitted to engage in municipal and state enteE
prises?
This is the question raised by the presidential
demand that congress pass a law which shall pre-
cities and states from issuing bonds which
exempt from income provisions
The argument against the tax exemption for pub
tic purposes is that wealthy men will seek such
vestments and thus take their capital away from
privately owned industries which are seeking new
blood
Before congress grants the request it might be
well t. examine just where this course will lead and
whether it does the shifting to the public
the burden of enormous rates for loans for needed
city enterprises.
During the war there very little done in the
way of public Improvement. There is a need in
every city or state of new buildings better
of schools of greater facilities of every kind
for public use.
The only way in which these public enterprises
can be built is through loans and in borrowing
money the cities and states so out and com
pete with every scheme, legitimate and otherwise
which offers its capital
In most private enterprises some sort of share
in profits is usually given bonus bonds.
The cities and states can only promise interest, and
this usually at a lower rate than is paid on bonds
of industrial concerns
To remove the tax exemption from public loans
means the shutting off OF money with which fl
nance the needs Of communities the raising Of
interest high point that any extra
money taken by the federal government from this
source will be paid by the public in the form of
local taxes
Money always seeks the highest return and goes
to the rlace that promises the richest rewards, if
safety be assured.
There are those who believe the driving Of
large sums of money into public use or coaxing it
there by some form of lure
The tax exemption is a bait held out to the
wealthy loan their money to the public. In
reality it is taking private money for public use,
for when the investment reaches a point where the
return is greater than the spending power of the
man who loans il. there other way him
escape taxation than keep on ping up his in
terest in loans
Remove that exemption and there can be
pected loss in value of municipal securities that
will bring those of every city to far below par
for the meager interest rate will permit cities
to compete with private industries which promise
10 or l. percent year returns for money they de-
sire their business
The only effect OF the result of this presidential
recommendation will be the embarrassment of
every city and state in obtaining funds for improve
ments they need and turning the money TO the
enterprises which the gentlemen of Wall Street
more money.
\ liberal policy of tax exemptions for loans to
public enterprises and a sales tax which shifts the
burden to the consuming incomes would probably
result i'm speeding up all industry. II might not
please the money vendors Of Wall Street, who just
hate to see the cities handling any of the money
of the country. They supposed that they had a
monopoly telling people how their cash is to be
invested.
Good times bad times. there's one old thing
we always hang TO and that's street car straps.
They call them quack doctors because they are
all bill
The Louisiana couple married at 1000 feet in
an airplane came earth quicker than most
couples.
Prof. Roubaud figures fly has SsS5.sss.755. 100
descendants in ibe months. Suppose she cackled