Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-02
TRADE
PROMISED BY KLEIN
Assistant Commerce Head
Assures Chamber Govern.
ment Wants to Help.
Continued From First Page.)

Continued From First Page.)
in the great majority of which retailing
and wholesaiing make up the major part
of business, Mr.. Grimes told the con-
vention.
AN industry making up such an i'm
portant part OF the whole amount can
not be pushed out Of existence without
seriously deranging the entire business
mechanism" he warned.
There are approximately 1900 900 re-
tail outlets and about 5000 wholesale
houses in the country, he pointed out.
Invested in these enterprises is ap-
proximately SIS ZOO, 900, 900, and its an
nual sales approximate 100000 900 900.
Engaged in these businesses are some
several million people. These. with their
families and dependents. provide income
for approximately 100000 of our pop
ulation."
Chances for Young People.
Mr.. Grimes warned that nothing
should ever be permitted to impair Seri-
ously the making Of profits and keeping
opportunity open for young people to
engage in a business of their own.
BusinesSlike administration to check
the indiscriminate growth of taxation
was advocated by John G. Lonsdale,
president of the National Bank of Com
merce Of St Louis.
The farmer and the banker have
been singled out as victims of unjust
taxation, he said. and he directed at
tention to the tax on corporation in
comes and earned incomes.
The income tax on corporations is
too high and should like to go on
record for adequate reduction" said
Mr.. Lonsdale. Likewise the tax upon
or materially reduced.
Earned Income Tax Cuts.
Because the tax on earned incomes
imposes a penalty on thrift. this also
is deserving of attention by Congress
Fortunately, President Hoover has just
recently gone on record as favoring
legislation for earned income to head
the list of relief laws. However, with
vast public expenditures and other
monetary drains facing the Treasury,
this reduction may prove to be only
one of those will-o' -the-wisp hopes, I'M
less pressure Is brought to bear"
Business men have accepted the
challenge, thrown off their coats and
rolled up their sleeves, Mr., Lonsdale
said. and definite results are certain,
The annual dinner. one of the princi-
pal functions of the convention. will be
given tonight at O'Clock at the Wash
ington Auditorium with nearly 5000
delegates in attendance. Paul Shoup
of San Francisco. president of the
Southern Pacific Co., will be tOastmas-
ter Senator Henry J. Allen of Kansas
will be the speaker.
An aviation meeting in connection
with the convention, sponsored by the
National Association of Commercial Or
ganization Secretaries, was held this
noon at the Willard Hotel. One of the
six surviving aviators who were flying
before 1911, Gerrish GasSaway, pre-
sided Gassaway is manager Of the
Chamber of Commerce of Wilmington
Del.
Famous aviators, including Amelia
Earhart. Elinor Smith. holder Of the
womens endurance record; Shirley
Short, winner of the Harmon trophy;
George Haldeman, Ambrose Banks. the
first air mail pilot to come to WASH
ington. and others were among the in
vited guests.
Convention Closes Tomorrow.
The convention will close tomorrow
with a final general session, at which
the assembly is expected to ratify the
election of II new directors, placed in
nomination last Monday.
At the conference yesterday on
finance and credit supply Prof o. M
w. Sprague OF Harvard University ad-
vocated increase of the Federal Reserve
rediscount rate from~5 to per cent
or higher, as a means OF restricting the
amount of money used in speculation.
Prof Sprague declared the present
policy of the Federal Reserve Board haC
proved ineffective and urged that more
drastic action be taken, so that the full
benefit would result Immediately. in
stead of following the policy OF slow
gradual pressure" which. he said, hac
been employed by the board.
BY raising the rediScount rate, Prof
Sprague said, the Reserve Board woulC
serve notice that unlimited demand fol
credit will encounter definite and ef-
fective obstacles.
He explained that he did not contend
security prices are too high at present
but declared the Reserve Board Shoulc
act before prices do become too high
and possibly result in collapse.
W. F. Gephart, vice president OF the
First National Bank of st. Louis. said
those who expect the Reserve Board tC
work miracles expect the impossible.
Cannot Stabilize Prices"
"The Reserve Board cannot. ought
not and has no business trying to sta
bilize prices" he added. This seems
to me the poorest possible time to ex-
pect it to be able to devise any particu-
lar method to control the situation"
Declaring the Reserve Board has been
attempting to control the credit situa-
ton by a policy based merely on opin-
ion. Waddill Catchings Of New York said
that business cannot be regulated In
this manner.
He charged the Reserve Board with
attempting to control the use of credit
by a policy based on the opinion that
security prices are too high and that
speculation is harmful.
Proposals that the Chamber of Com
merce sponsor of Nationwide cam
paign to improve the health of the
people and increase longevity were laid
before the round-table conference OF
life and property conservation by lead
ing public health officials and inSur-
ance representatives.
Taking as basis the enormous
strides made in the reduction of life
and property loss by fire through the
A. rAA hHy