Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-16
Washington Ticker
BY CLINTON COFFIN,
Associated Press Financial writer


ington at Secretary Melons invitation
to consider ways and means of limit.
| ing international double taxation
Considering the tremendous total of in
vestment in foreign fields that Ameri.
can citizens have made and the pros
pect that 1t will increase, the conference
was told, it was a matter of growing
importance that some method be de-
vised for preventing the accruing in
tereSt and dividends from being taxed
twice, once in the country where the
investment is made and again in the
United States.
Ogden Mills, UnderSecretary Of the
Treasury, told the gathering that the
principle favored by the American ad-
ministration was that of "exempting the
yield of investment capital from taxa
ton in the country of investment and
| taxing it only in the country Of resi-
dence of the investor" DR.. T. s.
Adams, whose expert service In the
shaping of revenue measures has been
obtained both by Congress and the
| Treasury for nearly 20 years, warned
auditors that the problem was one of
immense difficulty, but added there was
every indication that foreign govern
mentS were very willing to cooperate
with the enterprise Of preventing the
double impoSts.
AS the views of the asSemblage finally
crystalliZed. 1t was determined to recon-
ing proposal. The American law Sug-
/ gested will tender reciprocity to all for
eign countries, relieving investments of
their nations in the United States from
income taxation if, in turn the foreign
] country will do the same for invest
ments within its borders by citizens of
this country. There are some difilcul-
ties in the way of determining resi-
dence of taxpayers, but the opinion gen.
orally held was that the Treasury De-
partment, If granted by Congress the
right to make regulations supplemental
10 law in the matter would be able to
repreSs fraud and yet accomplish the
laws detectives.
This plan will obviate any necessity
| for treaties or conventions between the
United States and other nations spe-
ctf1cally dealing with double taxation.
In large number of instances foreign
countries are anticipating increased
financing and borrowing on the Ameri-
| can investment markets, and are ex-
pected to welcome the opportunity for
reciprocal treatment Of income taxes
that the American Congress will be
asked to tender. Oficial optimism as
to this international welcome for the
scheme is based in part on experience
with similar scheme applied to mer-
camille marine profits a few years ago
which Is operating satisfactorily. BY
the establishment of a general practice
among principal sea-freighting nations
snip operators are taxed on shipping
profitS only in their own country, and
are exempted from levies in the other
countries which their ships may serve
Foreign Trade Figures.
First figures of 1880 foreign trade
OF the United States became available
last week, and for January disclosed
sharp shrinkage in dollar values of both
exports and imports. Thus January
exports OF the country amount only to
SAT- 900, 600, or about $4,000 900 less
than IN the same month last year, while
January imports amount to 1912 ,OOO. 900,
about $56,000.000 less than during the
same period last year.
However, as commodity experts of the
commerce can demonstrate, this shrink
age in dollar value of the first months
international business does not mean
that the shrinkage in quantities of goods
moved Is equivalent. There have been
some marked price concessions affect
Ing number Of important commodities
since January, last year, which marked
~ distort comparisc rs. On the import
size raw rubber, sugar and coffee, three
items which bulk heavily in American
normal supplies from abroad, are SELL
ing at figures from 10 to 40 per cent
under those of last year.
=, on the export side Of the schedule
there is to be noted the same phenone-
non as to raw cotton, which Is the most
important single raw commodity GUS
tomarly shipped abroad from the
united States Cotton prices have been
under last year by meEe than 10 per cent
during most OF the DQgiod. In addition.
as TO copper and wheat, foreign pur-
CHASING in the United States during
LnlS winter has been temporarily set
back by differences between the price
views OF purchasers and producers. It
Is probable when the further details of
the January trade accounts are made
available that it will be- demonstrated
tnat the exports of manufactured goods
from this country varied little.
Banking Investigation.
number of representative Ameri-
can bankers will be summoned before
the House banking committee next
month, II present plans are carried
through, to express their views on pos
sible transformations, statutory and
otherwise. impending in the banking
field. This is the tentative plan of
congressional members, which will be
more completely formulated after the
committee goes into executive session
on the proposals next Tuesday.
Chairman MacFadden and the bank
ing committee, by vote of the House,
nave been authorized to carry an in
qulry into all the chain, branch and
group banking developments and prof.
ects in the country, with view to
determining legislation. Bills pending
IN the House express the widest pos
siole range Of legislation that might
treat the problem, since one or two of
them propose to facilitate the extern
sion OF chain and branch banks, while
others fatty propose to outlaw or tax
out of existence practically all forms
OF association banking. With this ex-
IRENE discrepancy of opinion existing
in the matter. the committee intends to
push an extensive search for views
OF banking leaders before considering
action.
InstalIment Selling.
From tentative figures collected by
the Government for 1929, the actual
proportion of the country's total auto
mobile output which is sold on INSTALL
ment may be smaller than supposed.
Compiled records of the all installment
credit houses as to 1929 automobile
sales showed that but 1,S15.673 new
machines were put out on time pay
ments during the period. American
automobile production for the year was
estimated at 5.500,O0O ears, and it has
been thought that as much as So per
cent OF the machines were being mar
keted by installment.
However the attempt to collect the
figures has been undertaken only re-
| Gently. and the findings may be less
complete than national statistics usual
| ly are.
| COTTON PRICES REACT,