New-York tribune., 1921-11-06
More Intensive
Action Agai1,st
Fraud Schemes
Government 0yad State Co.
operation to Curb Stock
Promotions, Especially
in Misleading SsAds''

Julian II. Harris, of Harris, Small
e Larson, Detroit, read the report
of the Committee on Taxation, CT
tracts of aVhich folloao:
"Our association was one of the first
publicly to recognize the need of elimi-
mating the excess profits tax as peace
time measure. Your committee is
thoroughly in accord with this. We
feel that the provisions of the present
law in that regard, while they may
not bear as heavily at this time in
money payment as the new proposed
Is per cent tax because of our de-
pressed business condition, do, never
theless, in normal times tax almost
to the point of destruction that ele-
ment of profits which is and should
be the insurance against risk. without
which capital cannot be ,duced to
promote legitimate business.
eve do not think it necessary to 20
further into the evils OF the present
methods of corporate taxation, since
we believe that the country has reason
to feel assured that this method OF
taxation will be abandoned.
your committee feels that the oues-
tion of refunding is sufficiently ger
name to the question Of taxation to re-
qulre some attention in this report
Consideration of the question of re
funding the early maturing obligations
of the government has led US to the
! following conclusions: We believe that
the policy of refunding is economical
ly sound and humanely just to the ex
tent that it spreads over the present
and Immediately succeeding genera.
tions the necessary burdens of the
we'll as for ourselves, and that the
economic soundness of the same is fur
ther emphasized by. the desirabilitv OF
removing part Of the strain from the
present already oyerburdened period
of reconstruction. Nevertheless, We
feel that it is neither sound economy
nor elemental justice to pass on tt
future generations any present un.
necessary eXtravagencc, and we are o.
the opinion that the whole question
of refunding should await the actua
etfecting of economies, promised by the
present Administration. The outstand
ing Treasury certificates are at presen,
largely absorbed by what may be callee
lHYcStHlcHt IHOuey. Inc country is II
be congratulated upon the way thi.
has been handled. and the hops ma,
be reasonably indulged that the pres
ent liquidation is sufficiently advanced
so that there may be no danger o1
these certificates being thrown back or
the hands of the banks. If this is so
there is no pressing need for refund
ing.
Your committee is heartily in ac
| cord with the position already taken b,
the association in regard to doins
away with tax exemptions on the in
come from municipal bonds thereafte
issued. We understand the position o.
the association in that regard to in
clude the provision that the same
should be done in an orderly manne,
by constitutional amendment, which
should include reciprocal right to tn,
states to tax the income from Fedora
securities, with proper safeguards O,
both sides against the power to destro,
| which IS always inherent in the powe1
| to tax.
Nothing illustrates the evils of tn,
present system of taxation better tina,
the abnormal flow of capital TO munici
| pal securities. They should be an
sorbed by institutional buying and b,
the investment of trust funds. Will,
business enterprise should be able t,
draw upon large accumulations of cani
/, tai which should be ENCOURAGED 10 tai.
the risks incident to business progress