Evening star., 1921-08-21
BY L. A. FLEMING.

so jealous of it's rights and actually
wanting a little better treatment
than his neighbor that universal
satisfaction is Impossible.
1t is hard enough to meet and
counter on the opposition OF the
party not in power. which may or
may not have any real grievance,
bul with the InCusand and one inter-
ess seeking protection each for it
Sell the ditticuity is almost insur-
mountable.
nous. save from labor sources, against
continuation of the eAcess profits
taxes during the current year.
Unanimous in a larse degree is the
demand that the measure be made
retroactive 10 do away entirely with
excess profits taxation this year.
The American Bankers Association
has voiced its protest direct to Repre-
sentative Fordney and mis- mail is un-
quessionably cluttered with similar
requests.
After all, to one who has watched
the business trend of the year 1921, 1t
does not appear as II it made much
actual difference whether 1921 or 1922
had been selected as the date to drop
the bulk of the excess profits taxes.
As matter of fact the great cor
porations of the country Will not
show many profits that will classify
as excess" IL the trade reports are
to be believed. and they seem TO be
substantiated by the passing Of divi-
dends, reductions and even some par
tial payments in scrip.
Many corporations that paid on ex-
cess profits last year have developed
net loss from operation this year, and
the signs of improvement have not
been sufficient to hope for any ma
terial increase in revenues for the
balance of the year.
1t is too early to discuss the pro-
visions of the Fordney measure;
House side and the Senate debates
will probably result in further
changes.
The country at large wants a new
tax measure and II the Fordney bill
with amendments does not satisfy
tax revision
Improvement In Slow.
One has to .dmit that Improvement
in business is slow. and yet condi-
tions might be worse. Unemploy-
ment is too general, wages are being
reduced in many lines of industrial
work, and in none more than by the
der the urge of price cutting and
competition by Independent manufac-
turers.
There is some talk of a renewal Of
Ine buyers strike, III lStiuSCS "hCi
retailers have shown a disposition to
again initiate prices, refusing to fol-
low the lead in adjusting themselves
and their business to the new condi-
tions.
Many investors have been forced
to meet circumstances ss they are.
finding themselves cut of from divl-
dends on stocks that they have held
for many years and have considered
invulIerable.
The American Sugar Refining Com
pany, after paying dividends without
an interruption for thirty years.
passed its declaration last week.
The passing and cutting OF divi-
dends has come to such a pass that
only the strongest corporations are
given credit for ability to continue.
Not a Criterion
And yet one must not take Wall
street and the New York stock mar
ket as a criterion of the business
Situa ton.
The long sick spell continues. The
greatest speculative and investment
market in the world is tired. Its
and go through the process OF lock-
ing them up for the dividends, with
intent 20 sell only on big advance,
have been sadly hurt and the scar
are too fresh, the memory OF the wiping
Out of margins and. in the event of paid
for stocks, of q very large part of the
principal Will not permit of the usual
picking up Of bargains at the fag end
of weak market.
They have no assurance that the
fag end is here. Lows OF one day
are not lows of the next.
And yet 1t is possible that some
buyers of stocks are leading up for
a two or three years pull, but they
are generally reformed bears who
cannot believe that prices will go
n1u- b lower.
That this is fact is admitted by
close observers. but they alone find
that the public, tired of waiting and
losing, has turned to bonds for In
yesrment returns with a measure of
safety ana to Treasury certificates
for absolute safety and commensurate
return on Investments.
7he OIher Side.
There are thousands of people still
holding their jobs and drawing fair
pay therefor.
Their capacity for buying that
which they need IS large. and there
are enough OF them to make the re-
tail business fair, and, per Sc, the
wholesale trade moderate.
Our great farming community Is
cashing in or will be vrey soon on it's
crops of 1921. and they will have
something over Tor their needs, about
their first buying and paying for a
year.
This must help conditions.
1t is always pleasant these days to
refer to the condition of the federal
reserve banks, strong in their accu-
mulated resources and bulging with
abundance, ready for the trade re-
vival, when 1t comes, and with dis
position to help 1t along with reduced
rediscount rates, which should not be
longer delayed, IL 1t Is, in the wisdom
of the governors, time to cut off frac-
tionS.
Bonds Decidedly Strong.
Bonds are decidedly active and
strong. This Is brought about
through the abundance of money
seeking employment. and the inabil-
ity of the banking fraternity to place
its secondary reserves on call at a
satisfactory rate, SO that they. too.
are turning to bonds. Many share
holders, or rather former share
holders eliminated from choice or by
losses from stocks, are also turning
to bonds, and the entire list. with few
exceptions, Is moving to higher
levels.
1t Is a fact that the bonds of many
corporations that have passed and
cut dividends have not reflected any
evidences of the depression going SO
far as to interfere with fixed charges.
Railroad earnings are doing some
what better and rail bonds are IA
vored above the industrials, while
foreign governments and foreign
cities bonds are holding well.
Further Liberty Exemptions.
possible limit of income-tax exemp-
fion IN Hharfv loans AYc1usJya 0f