The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-10-15
Higher Surtax
Hits Business
Striking Demonstrated
Seen in Disposal Of Gcv-
crnment-owned Railroad
Bonds.
BY DAVID LAWRENCE.
'C"pyrISht by The ln;eliiseucev0

WasNinctnr. OCT. 1.-THE first ef
t"cts Of N" Unsr.entittc or rather DIS
to!nt"i way IN Wh!,h the tax problem
has te"r tIrh!ed ~ congress has been
:s.t by the executive brauch OF the goY-
ernT"Hr. II leaked out to-day that az
ter selling dur IG three weeks In Sep
tsmhcr rr"r" than Sl0n. 600. 900 worth OF
Industrial AMI railroad bonds held by
the treasury. the sal. stopped abruptly
as soon aS the AGRICULTURAL boo In the
senate forced the Republican leaders
to agree to higher surta1es amounting
to about so per cent
Money that - had been expected
would tlo~ into business and cause y
reo?sntnS OF factories and revival OF
export trade. has sought other channels
"f investment. The trouble Is that In
congress. the feeling prevailed that tho
higher SurtaSes should be imposed IN
order 10 make IN for revenue that would
10 lost through the removal ~ other
taxes falling upon smaller incomes. Tho
argument was made that wealth should
be taxed heavily.
Rut as government officials point cu,
IL is not n question ~ d.scrimina ton
between large and small incomes. but
hrolG policy % economies. Business
enterprises hay" hccn hold stagnant
initiative has haen repslled and tho
country'S reconstruction retarded BY tho
vicious character ot the excess profits
taSes-hoth Republicans and Democrats
admit this. Now. however. In tho short
sra"e or two weeks. a demonstration Is
h"inG given ot parallel emergency
the imposition IF taxes SO high that q
will keep capital from being used in in.
dustry.
As TO Unemployment
Officials ~ the administration insist
that unemployment will continue un>
less means are found to tempt persons
with money 70 lend 4, 10 business en-
terpriS"s that need expansion and de-
NA!opment Indeed, /. IS urged that tho
purchasing power OF labor will be d.
mln!sh"d n the business depression 10
no; relieved by the easier flow Of capi-
tai from Invisible tn Visible use. Thus
agriculture would suffer along with
other r"'ail srd wholesale businesses.
Whom S"rtaSes are high. .hA tax exempt
houdS are gohhled Ut. ITty and munl-
cipa bords are tax free Irder tho
rs'!rrai constitution. congress- can't touch
Il, Al securities. Accordingly billions
o. dollars are tied up n rrrrtr!pa! bonds
that ought 20 be available 20 private
business
The .nIl significance ot the agree
ment made hy the senate leaders last
week to MAKE the sp-taxes about 81 per
cent is hN=. rn'rS - d. an on the admin
ts.ratlon which IS l.kei" to express IT,
ser v""y strong" on this point before
!"nC The house Mil made the S;lrtaxes
ABOUT 20 pHr cent which with the addi-
ton Of p"~ ,"nf normal tax made the
tofsl s~d"rH' taN About ~ ner cent. This
t"" !S considered hl@h. bat the fact Is
tho Government found ready market
tor - securities when TIA: figure vas
unae- discussion. Tho r'cmen: the pro-
poSal vaz madh howere~. TO 90 higher
to n s. ner cent s'rtaS Plus an per
cent "nrnal taX--th, saturation point
was 80 ,hsnt'y rAa.he,I--men with money
y" ,onCsr couY'd>"eI ,aH railroad bonds
offered for sac By the government
worth buying wA"H other tax-eIempt
securities were a:a..ab,e.
Knocked Bottom Out
Tho treasury department had fully
evpa, teI 70 dispose OF $3.50. .n0o. .0D0 worth
o; railroad securities. Everything went
fire dur!n-. cue recess OF congress bur
the new tax program has knocked tho
bottom out Of the governments aspira-
tioNS. And tho awkward pan, ~ tho
situation Is that the executive branch
OK the government which is t.ytng hard
10 hrjg: ;,r"nt a business revival. IS
~ adica pp"d hy the attitude Of members
of Congress. vino are mostly concerned
v!th a till that looks nell In, print. \
measure that seems TO relieve the mod
crate incomes hnt "soaks' the people
with capita. The viewpoint OF tho for
rcr is econom!r. tho latter IS purely
political President Harding alone ran
reconcile Tho t~o and before the tax
program IS finally competed. his Inter
N"nti"n - expected 50 that Il bill may
bc framed not FOR the benefit OF a class
u 10 brf pG-,.