The Washington herald., 1921-05-05
BANKERSFAVOR
REPEALOFExCESS
PROFITS MEASURE
Pres. Drum Reports Re
suit of Associations
Economic Survey.
SALES TAX FAVORED
Practically All Oppose Cancel
lation of Allied Debts to
United States.
SALES TAX FAVORED

PINEHURST, y. C.. May IKE
peal of the excess profits tax is
favored by a group of 1000 lead
ing American financial and indus
trial experts, according to an eco
nomic survey drawn by John s.
Drum. president of the American
Bankers Association, and .resent-
ed to the executive council of the
association here today. :r-'s
N large majority Of these men
are favorable to a sales tax. while
nearly all opposed cancellation Of
allied debts to the United states.
Drums survey was in the form
Of a chart on which was indicated
the majority and minority opinions
advanced by 1.eoO bankers and busi-
ness men TO, whom a series of thirty
questions on the chief financial.
commercial Industrial, Agricultural
and building problems of the day
were submitted. The survey ac-
companied Drums annual report.
new. Drum said.
Conditions that prevail today
prevailed in a lesser degree after
the Napoleonic wars" he said. -Our
problem Is the same as the world
problem 100 years ago.
Our solution today also is the
same. .
The world has been slow to re-
q a
palliatives are of no avail.
Tt Is time for action-not talk.
Urges Affirmative Action.
Il strongly urge this executive
council to take such Affirmative ac-
tion as will lead the bankers Of
the country to adopt a policy of con-
structive ltadership.
Il urge the creation of financial
machinery necessary to enable the
markets sof the world to consume
our excess production OF raw and
manufactured goods; machinery
necessary to guide and direct the
people in the common effort to cre-
ate new wealth so that the cost
OF war may be discharged, its
waste replaced and a surplus ac-
cumulsted.
a surplus Is necessary for the
normal prosperity of the world"
Drums report was adopted with
out debate by a unanimous rising
vote.
A composite survey Of answers to
the principal questions submitted
by Drum follows
1-Sentiment virtually unanimous
in favor of the repeaIof the excess
profits tax
:-ConsiderabIe majority favors
a sales tax.
"A great majority oppose can
cellation Of allied debts to the
United States
tionary this year.
5-Cancellation. Of contracts be-
cause Of falling prices has produced
a serious situation, although the
problem is less serious now thsp in
the fall or winter of 1920.
6-Manufacturers and exporters
are relainxg their efforts towards
securing foreign business.
IA surplus of manufactured
goods is shown to be stored in
virtually all parts of the country.
S-Complete stabilization of
prices may not be expected this
year.
s-Prospects for spring and sum-
mer retail trade are considered
poor to fair. rE
1Q-Commodity prices will not be
less than 25 per cent higher than
in,1s14. the majority opinion held
The minority opinion held that
prices will not fall to the 1914 level
within two or three years.
I1-Retailers were reported as
buying very sparingly.
1s-Collections were held to be
-rlow to fair
13-Transportation facilities were
declared to be adequate. A surplus
of cars was shown.
ia general reduction of pro-
duction in practically all lines Of
Industry was shown.
15-Emciency of labor was de-
eIared to be greater than a year
ago. &C.,
1s-A surplus of raw material
was shown due to decreased de-
mand-
17-Lack OF abundant credit for
farming purposes throughout the
country will cause some little re-
auction of acreage.
ieBuilding operations generally
will show a reduction as compared
with last year unless costs are re-
duced, the majority opinion held.
The number Of dwelling houses is
expected to be larger than In 1920.