Five Mile Beach weekly journal., 1922-02-17
From the
ELMER TIMES
COMMENT

forcefuI way. He speaks truths which
arc not always popular. In a speech
n tbe annual banquet of New Jersey
legislators last Saturday night he re-
ferred to present conditions in part
as follows:
"The fundamental evil, in my judg-
ment, is the country's unfavorable tax
apstem. This system is holding back
eVerv legitimate activity because in
vestors in an enterprise are forced to
nav anywhere from 40 to 65 per cent
"a all they make. The PRONUNCIATION
~ the theory of soaking the rich to
help the poor is having it's effect in re-
farding capital and keeping the poor
OUT of a job.
"All will admit, no matter on what
side they happen to be, the country
viii not recover it's stability until we
have markets. What are markets?
Tbev are the creations of business ac-
tiyity. There is just as much money
now as before the war, if not a little
more. and there are just as many peo-
pIe. And the only way to bring about
AL exchange of commodities and
money is to have the people working.
So to get back to the fundamental
dificulty, so long as incomes from
legitimate enterprises are kept pour
inc into the Government, and not
added to capital where they belong,
INST so long we will not have markets
and remain exactly where we are"
E% "
In an effort to reduce expenses the
West Jersey & Seashore R. r. Co. is
laving off men wherever possible. Five
entire gangs of track walkers have
been laid off and that has made many
changes in other gangs on account of
The seniority rules. Some who have
been gang foremen for several years
have had to step down to assistant
foremen, or lower, and assistant fore
men have dropped down a notch in
working status.
A searching inquiry into station Of
fee forces has been underway and
many clerks will have to look for
other positions.
The reduction in working hours and
other rules forced upon the railroads
a few years ago, nearly swamped them
financially and even the old West Jer-
sey found itself with a deficit instead
of a margin to go as dividends to
stockholders.
1t is unfortunate at this period that
Railroads must retrench, but the law
makers are to blame and not the rail
roads. The people pushed the control
Of the railroads from the stockholders
and directors, and piled financial bur-
.sHgns On them which they were not able
no bear. The result is that railroads
Wave been discharging employees
wherever they al be spared in order
to pay high wages to those who re-
main.
1t is believed that Congress will pass
a soldier bonus bill. Secretary of the
Treasury Mellon is against it be-
cause he foresees a slack-up in the eff
fort to get back to normal if govern
ment loans are to be fioated in addi-
tion to those absolutely necessary
without the bonus bond. He with
every other big man in the country
favors almost unlimited expenditures
to help any and every soldier disabled
lin the war, but most of the big men
would stop at that point, not because
the soldiers are undeserving, but be-
cause with the billions of debt the war
piled up on the country, any addi-
tional expenditures must increase tax
ation and also affect every kind of
business.
1t is claimed that the bonus should
be paid out of the funding of the for
eign government loans. That would
be fine if the foreigners were able to
pay even interest on the debt, but aside
from Great Britain there is not n
chat can pay without further increas-
ing the terrific monetary conditions
They face at home.
If this country is to prosper we must
Sell goods to foreigners and buy OF
Them also. They cannot get back to
normal in any other way. Instead of
paying this country money owing,
they must borrow more to re-establish
their industries and keep their own
people from starvation. 1t will not
pay to depend on money from them to
defray a bonus bill.
The only other course is more gov
ernment borrowing and new sources
pf taxation. Government borrowing
has already caused a lack of money
for other investments. Thousands of
SneOn1a who formarIv invested in mort
cages have gotten accustomed to cut
ting government coupons and will
not loan a dollar on real estate. Ex-
cept for this there would be a surplus
Of money for 5 per cent mortgages.
III the government could stop the flo
cation of treasury certificates the
money they now absorb would soon