Evening star., 1923-11-30
DECLARE BUSINESS
NEEDS TAX CUTS
Bankers Say New Industries
Are Held Back by Fear
of Too Heavy Burdens.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, November 30.-The
National City Banks December bank
letter says, in part:
Secretary Mellon has offered a
feasible plan of tax reduction, the ef-
fects of which If adopted are certain
to be seen in a new impetus to in
dustry and business of all kinds. The
country is in need of such an impetus
at this time. Business is in an un-
certain state and would be greatly
helped by action that would revive
general confidence. The prospect for
a settlement of European troubles is
not hopeful. and this country must
continue to look mainly to it's own in
oustrial activities and it's own in
dustr1al leadership for the employ
ment or Its workers and the consump-
tion or the products of It's farms,
mines ana factories. 1t must tide over
the period of restriction in world
trade by stimulating activity at home
We need TO support and encourage the
spirit OF enterprise throughout this
country in the coming year by every
practicable means.
construction work has been the
basis of the revival of business in the
past year. The difference between
good times and bad times, between full
employment and half-idle industries.
Is mainly in the amount of construc-
tioh work under way. The volume of
constructions work depends upon the
pulse OF confidence and the supply of
new capital flowing into the invest
ment fund. The old industries are
Kept busy in large part by the equip
ment and development of new in
dustries, and when confidence is dead
industry dwindles away.
iaAes winch take large part of
me earnings may be endured by es-
laDlished industries. but new enter
prises are involved In risks, and it is
serious deterrent to new ventures
that losses must be wholly borne by
the investor while the government
50 lands ready in the event of success
Such conditions do not promote the
spirit OF enterprise which the coun-
try is needing at this time.
War PrOflt Hard to Find.
or course there arises an outcry
against taking the taxes off of vast
incomes created by war profits etc.
winch has no more meaning than
beading tomtom. SO far as war
profits are concerned. those which
were not paid in taxes at the time
have been in great part lost since.
They are not tangible factor in the
wealth of the country. there is no
way of finding or distinguishing
them, and the man who talks about
them can be written down as one
who has nothing of any consequence
to say. To the general argument
against relieving the rich of taxes,
the statements from the Secretary's
letter afford reply that cannot fail
to be convincing to those who give
attention to them. The proposals are
not designed to take the taxes off the
rich.
Relief on Moderate Incomes
THE reductions that will be eff
fective are mainly upon moderate
incomes. while the rate reductions
upon large incomes are intended to
increase the Treasury revenues The
great body of thrifty, effective peo-
pie of moderate incomes will receive
substantial relief from taxation
Under the plan. and will have more
to invest in enterprises which will
give employment to labor. increase
the productive capacity of the coun-
try and contribute to the national
independence and prosperity in this
time of world disorganization and
uncertainty"