The Birmingham age-herald., 1924-11-29
Men And MHrkpts
 By P. F. E.
By P. F. B.

Are we going tax crazy? State and local governments are building veritanie monuments of dsbt which will have to be paid off some day. According to survey just completed by the Industrial Conference board, long term bonds is- sued by states and municipalities during the first ten months of 1924 exceed the same period of 1923 by S319,O0O,OOO. Plans now underway will add another $500, ,000 900 to the present staggering to- tal of SIG, ,500, ,000, ,000. In fact, in 1922 this total was $S,679, 100000 and in 1912 it was but $3,S22, ,000, ,00O. The per capita indebtedness of every citizen so far as municipal and state obligations are con- cerned has trebled during the last 12 years. Tax-exempt bonds have been in demand and money has been forthcom- ing for every sort of improvement, necessary and otherwise, until the situa- tion in some sections is really serious Once these bonds are issued and the money Is spent there is no way to help the situation. Economical admfnistra- tion may be able to cut current admins tration expenses but interest must be paid on these bonds, and when they are due the citizens of the community must dig down into their pockets and pay back the principal. The fact that this day of reckoning is 20 or 30 years away seems to suffice for certain short sighted individuals who would place any amount of burden on the coming gen. eration, just so they do not have to foot the bill personally for their own extravaganza. Tax burdens add an urk- some load to any sort of endeavor. Economy is now the rule and much progress will be made toward more ef- fective and less expensive state and mu- nicipal administrations. Bond burdens already existing, however, will hold back many communities for years to come and 1t is hoped that the vicious practice of loading up the taxpayer just because there is a market for tax exempt securities of any sort will come to and end.
 A stream of money is flowing back to Europe as a result of more stable con- ditions and increased confidence. These cash reserves which have been carried since the war, are going back home, in our banks during the uncertain years where they are needed more than. we need them here. As the shift continues better balance of world finance will be achieved and things will be nearer nor nal all around.
 Reforestration is being encouraged in the Pacific northwest. It takes 50 years to grow a crop of timber and the tax burden during the interim Is very heavy for the public spirited citizen who is willing to plant a crop that will not mature for half a century. This diffi- culty Is to be overcome by proposed plant to defer taxes on cut-over land. The planter can then go ahead and put in his crop. His taxes will be paid when his timber is marketed and he can easily afford to pay them. Here is a sensible inducement for the reforestration of cut-over lands that should be of ad- vantage to the entire country.
 | A rail committee, similar to the Presi- dents special agricultural committee appointed to study transportation prob lens and propose remedies clear of po- litical flavor has been suggested. It sounds reasonable and highly desirable. The railroad puzzle is difficult enough without beclouding 1t further with the prejudices of petty politics. The sit uation calls for an expert. Why not appoint competent specialists and then leav them to work until something sound has been accomplished?
 The 25 per cent tax reduction has not cut into Uncle Sam's income so much after all. Revenues collected between July and October 31 show a decrease of but $79, ,393, ASA under the same period of last year. In spite of the 25 per cent tax cut actual collections by the gov ernment this year are only running about 10 per cent under last. Loss of revenue is therefore not as serious as supposed and we may have further tax cuts without completely bankrupting the national government
 The larger hotels are actually con- sidering mo tipping" policy that real ly means what it says. Meeting in New York recently they discussed the ques- tion and seemed to approve it. Will il work. Well, just let a good hotel render the service without change that is now being paid for peacemeal in ad- dition to regular charges, and watch the line form around the corner and down the block!
 Characterizing America as the work shop of the world with four years ol uninterrupted opportunity to work ahead of it." Charles Schwab, chairman of the Bethlehem corporation, predicts another era of prosperity. Whats more the facts seem to be with him this time!