Evening star., 1921-08-21
EXCESS ROFITS OF YEAR 1921
LIKELY TO BE SMALL FACTOR
Business Wants Tax Revision, But Is Hard
to Suit-Phases of Commercial Condi-
tions-Bonds Strone-Money Is Easy.

becomes law it will be possible for
any investor to go into the mark ct
and buy any of the Is or 4Als aggre-
eating $4,000. which will be tax
exempt for two years after peace
with Germany shall be proclaimed by
the President 1t will not be neces-
sary that the purchaser should have
been an original subscriber to any
issue. and he can hold the full
$4,000 of one issue, If he chooses
Of this s1Sc0o0 exempt there is
$4,000 which is permanently exempt
under the present law. and will con-
tinue to enjoy that privilege under
the Fordney bill.
Against Tax Exemptions,
A determined effort to end the tax
exemption Of certain classes of se-
curities has been started by the Chi
cago Mortgage Bankers Association.
consisting of concerns in Chicago
lending money on city real estate.
The organizations began it's efforts
when the recent national convention
of real estate boards was held here
lasc month. That convention adopted
resolutions directed against the fur
ther extension OF the ia exemption
tion has enlisted large number of
real estate men throughout the coun-
try in it's campaign.
At the real estate convention the
Keynote was sounded by Melvin A.
Traylor, a Chicago banker, I'm an ad-
dress on "The Menace Of Economic
Failacies." Mr.. Trayror asserted that.
including liberty bonds, there are over
thirty billions of dollars of tax-free Sc
curities af1oat in the country. These, he
nfcipal securities. and appeal to the
very wealthy, resulting in keeping
general taxation high and restricting
productive industry. He charged also
that much municipal extravaganza is
due to the tax exemption feature of
The Chicago Mortgage Bankers
Association charges that tax exemp-
tion causes the diversion of large
amounts Of money by estates and in
building enterprises to those which
are inert, SO far as productive indus
try is concerned. 1t charges the
building shortage to be due largely
to the purchase Of tax-free securities.
ard that as a result rents and taxes
upon the general public are increased.
A protest against the furtherance of
tax exemption has been sent by the
association to every member of Con-
gress and the foundation of a national
organization of city mortgage loan
men has been formed. 1t is purposed
through this national organization to
demonstrate that the extension of
| the tax exemption privilege means
exemption for the wealthy only and a
greater taxation for the general pub
| lie, higher rents through less build
ing, the continuance Of the high liv-
ing cost and unemployment because
of less capital for productive indus
try, and a general halting of indus
trial development.
Our Foreign Trade.
Our foreign trade is bad. nor is there
any indication of improvement.
what she needs and credit is well
nigh exhausted.
That seems to be about the only
trouble.
South America seems to have reach
ed about the same stage.
The National City Bank has closed
its branches at BarranQuilla. Bogota
and Medellin. Colombo. Improbable
| business and slow collections are
given az the reason therefor.