The New York herald., 1922-05-14
Says Funds Flow Into Invest
ment and Speculation In
stead of Industry.
BIG BURDEN ON MINORITY
War Time Makeshift Contin-
ued. Hating Return to
NOrmalcy.

Otto Fl. Kahn. banker and fnancier,
before starting yesterday for Europe.
addressed a large gathering Of business
men at the Midday Club. 25 Broad street.
Mr.. Kahn said that business has
been getting better in recent months,
but normalcy has not yet returned,
that ''the corner has been definitely
turned for the better" and that I'VE are
isow on the ascending scale" There is
still considerable unemployment, Mr..
Kahn added, with all it's attending dis
content, restlessness and maladjust-
ment."
The typical spirit of American enter
prise" he said. sis not at work on its
former scale, for the reason that it was
crippled by faulty taxation so that
funds are flowing into investment and
speculation instead of into industrial ac-
tvity."
lie declared that while this country's
export trade shows a heavy shrinkage
from the war years, yet "even in the
year of depression OF 1921 our exports
aggregated in value almost twice our
average exports in, the prewar years OF
1913 and 1917
Three Questions Asked.
"rhe social and economic welfare of
the country is inseparably connected
With the welfare of its industries
said Mr.. Kahn. THE return to normal
conditions of industrial activity can
lot be accomplished. ] believe, without
wise and courageous revision of our
tax laws
q should like to address the follow
ing questions to all those who. un-
tsught by the test of the last four
xaars, still cling to the ill-conceived
and nationally detrimental system of
taxation which was inaugurated in the
stress, and to meet the exigencies, of
war and is mo more fitted to be per-
petuated in peace than any other war
me assure.
has any one. any calling. or any
section of the country been benefited
by IN system which was meant by its
promoters to place the principal burden
Of Taxation upon a small minority of
tho people? Has not. on the contrary,
that burden, translated into higher
costs. diminished supply of capital, re-
duced enterprise, decreased employment
and freaksh maladjustments, fallen
heavily upon ak the people, more heav-
ily y%indeed than would have been the
case under a system less based upon
political opportunism and make believe.
Surtax Rates Top World.
%. Do you know that our sprtax rates
are still the highest in the Wo-ld-that
is. to-day no other country has thought
IL wise and safe to penalze success and
discourage enterprise by Imposing sur
taxes rising as ours do % So per cent.
Vet the revenue needs of soire of these
countries are far greater pr5portionately
than are ours?
20. Is it not a fact that tie problem
offraising in times of peace SC large a
sum as 100000 by taxation is an
entirely new one to us AMI that we have
no precedent to guide us in its solution?
If so, 1t is reasonable to think that we
have found the best solution right off, at
the first attempt, in the revenue measure
enacted in the midst of var. and to
adhere. as we have dorC, generally
speaking, to the economic conceptions
underlying that measure? Ought we not
rather. while retaining the principle of
progressive income taxation. 10 do some
prudent. carefully circum5cribed and
iesponsiby- sponsored experimenting in
order to ascertain through the test of
actual experience what IS the best and
most advantageous and least burden
some way all round to raise the revenue
necessary for the conduct of the Govern
r1eI1f 2''