The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-19


ployment so generally and arc -
influential upon sentiment that they
make the pace to which others cen
form. In neither case is there
quite the necessity for activity IN.
there was year ago, but in lot
cases the needs are still al,c'
normal.
industrial corporations are glv',,
evidence of there confidence IN IL
future by adopting plans for y
. creasing their capacity. 1t was CO.
mon talk after the war that the ste
industry had been expanded beyo''
probable needs for ten years or NOR
but a number OF the leading COZ.
panies have been enlarging since thc
and the u. S. Steel Corporations n..
planned $1s00O,O00 Of the CAPT.
expenditures in 1924.
The very condition which is tf'
chief cause OF uneasiness, the hi :
scale of industrial costs, like IA
house rents. is stimulus to sor =
forms of industrial expenditure. 1t Is
causing most searching stu"y -
costs to be made and the install /
ton Of much new equipment t'r
the purpose OF reducing the l
The papers from day to day "a"
carrying announcements or ny
processes, some OF them OF very 81.
nihcant Importance. liydro-c i"'
trio development is going OH at AZ
unprecedented rate.but by no mean:
tells the whole story Of clcc;'cai
development. More than $IM,"9'
600 of new capital was irwe"t"i
last year for additions TO steam ~
hydro-e.cctric pants trans'ni'''''
lines and the general cquIrn,e;' o.
distribution, while the total ,n:r>:.
ment in the central stations OF 'h-
country is now nearly six h'' '"''
dollars. 1t is STAYED THAT CIV ie.'
important new power stations ''..'
be completed in the State OF Penn
sylvana before the end OF lo!@.
Electrical energy is one o. the t"w
cost-of-living items that is lower "'w
than in 1913, and This is ,uG,:ts,"s
of other developments under way
Tax Reduction
The probability of reduction ~
taxation is one OF The most st,'nr.
lating prospects. The progress ~
the Mellon program i'll the llo":'
Committee indicates that su5staHt''
reductions certainly will be ma"
but the outcome upon the ne u
schedules is yet undetermined. IL:
is precisely where the largest h"r"n
| to the business community arc -
secured. Mr. Mellon has fo'io've,; 80
his original argument for lower .,
taxes so vigorously and efiec''r.
! that he must have made .he =.
| very clear 10 most readers who ID.
followed him, and the business r;t'
lie has supported him in n1ar.~
that has made the talk about crop
| uganda weaken perceptibly.
The essence Of the case is that -
revenues now being collected OH 'ht
high incomes consist OF capital -
would serve the country more
fectively in production and that Ia
| addition to this much create
amount OF capital is made unavail-
able for new business enterprises b,
being driven into the tax excn,p'
| class of investments. II is worse than
farce for the government to le"s
taxes running up to s. per cent o,
an individuals income while tax
exempt securities paying 4H to per
cent interest are available in alum
dance. OF course. nobody with The
high incomes will pay these tan"
unless his capital is already investc'
in such manner that it cannot .
shifted without heavy loss. The levr
therefore become heavy discrimin
atory taxation. paid only by individ.
uals whose investments are suh,ec
to the risks of business. AND act ~
. deterrent to new investments >.
this character. It is unintclligent Tax.
alton from the standpoint OF :h-
public interest. because it takes orac-
tically nothing except funds destined
to become productive capital.