The Washington herald., 1921-10-05
AX-BlL DELAY
HURTS BUSINESS,
BANKER ASSERTS
Says Tariff Should Be
Laid Aside Until Trade
Is Stabilized.
FLAYS PROFITS TAX
Declares Industry Cannot Re.
cover Under Present
Burdens.
FLAYS PROFITS TAX

Los ANGELES. Cal. Oct. f.-E. c.
McDougal, president OF the State
Bank Division. American Bankers'
Association. nayed Congress for its
delay in reducing taxation and Rcv-
ernment expenditures. in an address
delivered st the convention here
The Republican party 1sacredly 10
pledged" he said, ito real reduction
Of government expenditures and
government taxation. No halfway
measure will satisfy that pledge.
Let no member of Congress think
that the nation Is not fully aware
that many OF his colleagues are
hoping by delay and csmoufiage to
obscure the main issue deliberately
to evade fulfillment
One specious excuse for delay
is that the tariff bill should have
the right of way. As a matter of
fact, Intelligent leaders in Congress
must know that SO long as domestic
trade and manufactures are in q
state of fiux, and until they become
stabilized, TO say nothing Of foreign
trade, IL will be practically impos-
sibie for human wisdom. to frame
any tariff law that will not be out
of date soon after IL is printed
Under such conditions the only sane
course Is to do nothing.
Raps Inertia Of Congre.s.
1t would appear to the nation
that Congress Is against our Presi-
dent In his sincere intention to cut
expenses and taxes. Under our
Consultation, in matters of taxation.
Congress has the initiative. BY
deadly inertia alone il can defeat
him. The nation has complete con-
fidence in him and his Cabinet
Whatever they tell us we believe.
Whatever taxes they say are alb
solutely necessary we cheerfulIy
VIII pay, but not dollar more.
Now. when we are least able TO
bear it. when business cannot re-
vise under IL, is the time to.re-
duce taxation. Every months delay
means more, perhaps much more.
than a months prolongation or
business depression, and many ad-
ditional and entirely unnecessary
business failures. Every dollar OF
unnecessary taxation will cost the
business to merchants aud manu-
employees
PROFITS Tax Out-dated.
The theory of our present excess
profits taxes Is that in war times
some merchants and manufacturers
make enormous profits. to the
greater part OF which they are not
entitled. That greater part the
government takes. In November,
next. the war will have beel ended
three full years. As a matter Of
strict justice excess profits taxes
should long ago have been abolished.
They now should be abolished at
once, without regard to any other
question. As a matter OF fact, few
businesses are having, or will have,
any excess profits to tax.
Notwithstanding that. Congress
says to corporations: We will abol-
ish the excess profits tax and in
lieu thereof increase the percentage
OF straight tax on net income. In
other words, we will deduct moth
ing, and in lieu thereof will add
something. This is pure camou-
flage. and OF the most shameless
kind. This is not merely refusing
to reduce taxation. It is actually in
creasing it. Judged by its own acts
Congress little cares what happens
to business, or to the nation. 50
long as II can avoid any real reduc-
tion of government expenses. SO
long as its members can keep all
their friends on the government
payroll, whether needed or not"