Evening star., 1921-03-20
BY I. A. FLEMING.

! Business Is recuperating "a trifle
groggy, if you will admit the truth.
| but gradually recovering it's wind,
| ready for a fresh start and in need
| of tonic.
The three first industries to get
down in the slough of despond. If
that ancient pond still exists. leath-
er, wooden goods and the automobile
| industry. have passed beyond the
danger zone and are rapidly return
! ing to the satisfactory stage.
| Others have taken their medicine.
gradually making what progress they
can in convaleScence or still worry
| ing along in the danger zone and
hoping for the best.
The tonic that railroads and cor
porations must have if they would
stand alone and make progress for
ward is a composition of excess tax
reduction and excess wage clipping,
plus increased efficiency, and the
sooner the concoction is prepared and
administered the better.
Excess profits, plus surtaxes, nave
absorbed the new money of the coun-
try. Every one understands TINS
fact.
Corporations-and if corporations
are not prosperous. then no real pros
need the profits to recoup their sur
pluses that have been shot to pieces
by tax payments and the ad)ustmehI
OF their inventories. consisting OF
goods manufactured on the hlgh cost
bases, to present-day values.
There seems to be more unaHilnily
of belief in connection with the heed
for the abolition of the eXcss prohts
tax than on any othr SUBJECT save
on our Americanism, where business
is a unit.
A substitute must be found. On
this problem there are many sug-
pestions and small unaminity. Let
the wisdom Of the administration and
the lawmakers centralize on the mat
ter for a time and something Will be
brought forth before the end of the
calendar year. If it will do the work
and it will not meet with admins
tration if it does MOTT will be well
coined as the one great tonic.
Financial New York. Chicago. Phil
adelphia, Washington and financial
interests all over the country have
large faith in the President and the
Presidents cabinet.
Mr.. Mellon is generally given credit
as being one of the most skillful of
financiers. He win unqnestionably
make many suggestions that will be
of great value.
Mr.. Weeks is another strong man.
while Mr.. Fall and Mr.. Hoover know
business from the ground up. Taking
the entire cabinet as a whole. 1t is
given rating far above the average
of presidential selections for the diff
ficult posts.
The Secretary of the Treasury seems
inclined to reticence. but it would
surprise no one If he should quickly
evolve a plan for refunding the $2,-.
000. .00O. 900 outstanding Treasury GER
tificates. thereby removing the
Iiot,, rhov f1 hn
market through the offerings of GER
tificates.
Money Working Easier.
The demand for money is less
urgent. So many conservative in
vestors have been driven from the
stock market by the nervous, un-
settled conditions Of stocks and by
meet. that they seem determined to
keep away from corporate invest
ments during the immediate future,
at least, and are in the field for gov
ernment securities.
Treasury certificates are good in
vestments. but the fact that the
longest maturity is but a year away.
and that frequent repurchases must
be made as each series natures. is
one of the handicaps against them.
certificates of six months and one
year maturity are subscribed for at
So and 5A per cent it is fair evil
dence that a $4,000. 900, 900 bond issue
could be placed at rates perhaps a
little lower. especially IL they were
longtime bonds and free Of excess
profits and surtaxes.
sabin ON Taxation.
Opportune at this time are the
remarks of Charles H. Sabin. presi-
dent of the Guaranty Trust Company,
made before group of the New York
Bankers Association some weeks
ago:
while the exigencies of the hour
may have originally justified Con-
gress in resorting to method
Of taxation as ineuuitable and un-
sound in theory as the present taxes
on profits and income. no excuses
may be offered for continuing to levy
such taxes during the critical period
OF transition from a war to a peace
basis, and Congress must lend a SYM
pathetic ear to the demands of busi-
ness for an early revision of exist
have for its basis a more equitable
distribution of the burden Of taxa
tion.'
Under any system that is adopted
as a taxation or revenue measure,
lief that exemption from participa-
tfon therein should not be extended
to any securities, as 1t is too much
of a temptation to those perfectly
able to make payments to seek ex-
additional burden on others.
Look for Lower nRtes.
1t would surprise no one familiar
Board would relax it's credit guard
and lower the rates on rediscounts
for member banks. 1t would be a
help to business and anything in the
nature of an aid at this time, as be-
fore stated, should be encouraged
The banking fraternity now admits
that the pressure to restrict credits
was not applied a minute too soon
by the reserve board. that it's COM
! plants on frozen" credits were rea-
| sonable. and that its wise actions
helped over the dangerous period.
| Action in the Stock Market.
Action in the New York stock mar
ket while decidedly drastic has ap-
parently been so well managed that
| at no time were conditions approach
/ ing a panic.
Months ago the opinion favored the
idea that the market was grinding
on the bottom" and then new ideas
lowed. prices being stifrened when
the liquidation became serious, gen.
| orally for q slight rally. Thousands
| Of shares of stock have been liquidat-
ed by holders who had their stock
paid for and who refused to get out
at much higher figures. but who have
yielded to q desire to save some
thing and get out.
Mary who sold out at much high
er levels are beginning to replace
ing the market and waiting for
chance to get in again when condi-
tions are more 10 their liking.
Columbia Grnphophone.