The Washington times., 1924-01-18
BANKERS FAVOR
MELLON TAX
PLAN
american Bankers League
Urges Reduction Of Taxes
Before House Committee
By HARRY GUsACK.

A committee of the American
Bankers League, consisting of lead
ing bankers from twenty.seven
States appeared before the House
Ways and Means Committee and
presented their Endorsement OF the
Mellon tax reductions plan at a
special hearing granted to them
this afternoon.
According to the bankers COM
mittee, twenty-five per cent OF the
profits of any concern is the limit
which the Government can exact
without killing off productive in
dustry.
Offer to Help.
Headed by its president, Chas.
deb, Claiborne, of New Orleans,
the League claiming authority 10
speak for more than ten thousand
banks including the presidents Of
twenty-one State bankers associa-
lions, officially fixed this figure as
the deadline in taxation and stated
that on this basis alone could the
bankers finance productive enter
prises and take care of the agri-
cultural budget of the nation.
1--WE are here as bankers to offer
you the benefit of our observation,
experience and judgment In tax
matters and to relate how, in our
opinion, taxation affects investments
and to give you our judgment on
the Mellon Plan" President Clai-
borne stated, speaking for the com.
Mittee.
"Our primary concern is in H.
nancing the farm, the ranch, the
mine and the factory and aid them
in producing wealth to their full
capacity. AS bankers, it is our
mission to provide funds to keep
our wealth-producing industries 60
ing on a sound financial basis. II
takes large volume and reasonable
rates of interest to do SO. With
our farm and other productive Sc
curities, we must, Of course, enter
competitive markets. It, Of course,
goes without saying that investors
will put their money where 1t will
bring the largest net returns to
them and no law Of the land can
compel them to do otherwise. 1t
Is at this point that the tax system
enters as a controlling factor in in
veStments. The present rates pre-
vent a man Of large means inver t.
ing in taxable securities, and COM
pels him to buy tax exempt Sc
curities thereby destroying our mar
kets for farm and productive Sc
curities.
DeadIine On Taxes.
Somewhere there is a deadllne
in taxation. There is q limit to the
levy that Government can lay upon
capital and upon the profits of
th6se engaged in investing money
in productive industry without
Gripping or destroying those In
dustries, and we believe that this
limit is twenty-five per cent Of the
profits Of any person or concern
In our opinion that Is all the traffic
will bear and more than it should
stand. It is our observation and
opinion that any rate Of taxation
above twenty-five per cent will
bring less revenue than a lower
levy, and this decision is borne out
by Government records in your
treasury department"
Approval Of the principles Of the
Mellon plan of tax reduction was
voted by representatives from TWEEN.
ty-six states at a meeting of the
League at the Raleigh Hotel today.
The delegates were addressed by
Senator Carter Glass Of Virginia,
who explained the proposed changes
in the Mellon plan.
Where the tax of an income Of
$4,000 was now about 500 and
where under the Mellon plan 1t
would be cut to SIS, under the
proposed change would be about
SAP he said.