The Washington times., 1928-10-15
TOURISTS GOLD
INCREASES

NEW YORK. Oct. 15.-Ameri-
can tourists this year will have
spent enough abroad to put debt
or countries in funds to pay their
interest on the outstanding private
and governmental obligations held
in this country.
In other words, the Old World
will again pay its debt to the
new by permitting Americans to
visit European art galleries and
spas and to import impressions OF
European customs and manners.
Tourism accordingly has become
q giant industry-of record-break-
ing proportions this year. The
rising demand for foreign travel
IL phase OF the higher STAN
dard of living and the new pros
perity. The expenditures of tour
lists constitute a huge invisible
import, which help to right the
balance OF payments between the
United States and foreign nations.
DIR. Ray Hall, OF the Department
Of Commerce. estimates that the
expenditures OF American tourists
abroad in 1928 will be larger than
in any previous year. and also that
the gain over the previous year Is
of record. brtaking proportions.
Mr.. Hall, in predicting total ex-
penditures of 5000, 100000 sees a
gain OF 800 100000, over the 1927
total, which reached 1870, 00O. 900.
The increase in monetary ex-
penditures. however, Is less than
the gain in the number of tourists.
The disparity is explained by the
increasing proportion of those who
travel BY student third.class or
tourist class, and whose expendi-
lures are accordingly smaller than
the outlay of first.class tourists.
Expenditures by our overseas tour
lists, according to Mr.. Hall, may well
be 10 per cent more in the present
calendar year than in the last one.
This ratio compares with an In
crease OF III per cent in the De-
partment OF Labor statistics on
the number OF United States cit1-
zens who have departed.
The lay mind will be impressed
with the magnitude of the aggre-
gate expenditures overseas when,
II is realized that the sum spent
OF capital to foreign countries
during the year by American in.
vestors and bankers.
In spite of moderate prospective
Improvement in the aggregate
income of American farmers,
aSrarians are hard-pressed by
high overhead charges. Farmers
find rising local taxes particu.
larly burdensome.
Under the impetus Of low in
terest rates, local units of gov
eminent throughout the country
have spent funds prodigiously for
public improvements. Local out
lays for current expenses and
capital purposes amounted to So
900, 900 900 in 1925, compared with
$4,000, 600, 900 in 1913. The net
bonded indebtedness of local units
of government In the United
States scared from $1,000. 900 900
in 1913 to more than SO 500, 900.
900 in 1923. The figure il now
above $4,000, 900 900.
In studying means Of applying
the brakes on the money-spend-
ing proclivities of public officials,
the committee on State and local
taxation and expenditures Of the
Chamber Of Commerce of the
United States has urged the
wisdom of the pay.as-you-go plan
instead Of piling up debts. Such
methods are employed in De
troit, Cleveland, Youngstown and
by the State Of Indiana in its
road building program.
THE amount of money being
paid in interest on outstanding
State and local indebtedness,
the report, issued today. points
out, lis commanding increasing
attention. Two dollars paid over
a period of years in exchange
for every dollar borrowed for
immediate use. one Of the two
being principal and the other
interest
Advocates of the pay-as-you. go
system for State and local gov
ernments have attributed many adj
vantaces to it, probably the most
important of which ig the reduc-
ton Of cost through avoidance of
interest payments. Its benefits.
however. extend beyond the mere
question: OIL COSl. SpGnQlnX OIL
Gals and taxpayers are more de-
1iberate about acquiring unneces.
sary improvements when the cost
has to be met immediately. In.
dividual projects are undertaken
on q more economical basis for the
same reason.
Tax considerations also have a
direct bearing on the stock mar
ket. The reluctance of wealthy
holders Is heightened by the fact
that under the Federal income tax
law they must divide one.fifth of
their gains with the Government.
Accordingly, rich holders feel that
they have an invisible margin, in
the Governments share of their
paper profits, against which they
can hold on, instead Of cashing in
gains. Conversely, losses are De.
ductible from taxable income, ana
there Is excessive zeal to close
out shares on which there is .
loss. Thus the tax constellation