Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-19
WHOLESALE PRICE
DECLINE REPORTED
Business Report by Depart
ment of Commerce Shows
Bank Loan Increase.
BY JOHN F. SINCLAIR.

nounced the following program to rails
more taxes to cover the growing deficit
], tax on bachelors and spinsters. Il
bring in a net revenue of 100000
marks; 2, 5 per cent increase in al
income taxes exceeding 1900 marks an
nually, to net an estimated revenue o
56,000,000 marks; 8, a vigorous cut il
miscellaneous" expenditures of 10O
100000 marks; 4, sacrifice" levy OF
civil servants income to net the gov
eminent 135, 100000 marks.
The sum total of this program
amounts to 403,000,000 marks, while DR.
Bruening's estimated deficit for 1880 Il
ance of the deficit a poll tax of from :
to 6 marks for each citizen was under
consideration.
When the Reichstag refused to accept
the chancellor's program of increased
taxation the dictatorship became ne.
cessity.
A drastic overhauling of German
finances was intimated in the last re-
port of S. Parker Gilbert, then agent
general of reparations, who warned
Germany that 1t must quit Kidding
itself and use sterner measures to
bring its national expenditures below
its income, if economic recovery is to
be permanent.
Has new Bismarck arisen in Ger
many?
Wholesale prices have declined Ia
per cent during the past IL months.
says the United States Department OF
Commerce-some more, some less. Iron
and steel prices are but per cent lower
than they were year ago.
Business for the week ending July IL,
as indicated by the volume of checks
presented for payment, declined from
the precvedi1g period and was lower
than for the same week in 1929,
Bank loans and discounts and stock
prices for the week ending July IL, in
creased over that of two years ago.
While the number of business failures
during the last week were less than
during the same week of 1928.
some industries are ahead of last
year. Candy manufacturers report in
creasing sales
Candy is purchased at retail in such
small units and at such small cost that
1t is negligible factor in the family
budget" says the National Confec-
tionery Association. Statistics show
that the average person spends only 2
cents a day for CONNECTIONS. Individ-
ualA this item is so small that it
doesh figure at all in any scheme of
economy"
There is distinctly better feeling re-
garding the business future now than
there has been for months past.
Brokers loans ere getting back into
the control of the banks again, after
lures" Bootleg" loans-those con-
tracted outside of banks-are little
talked about now. because they are get
ting smaller every week.
The shift, which has taken place
from the non-ban g lenders to banks
is considered a gent. ally "stabilizing in
fuence upon the country's credit facili-
ties" according to Dominick 81 Domi-
nick, we'll known bankers.
Brokers loans still, however, are
also higher-probably attributed to the
withdrawal of non-banking funds.
Banks are, if anything. discouraging
loans on securities. Their immediate
job is to take on the brokers loans, let
loose by the non-banking lenders who
withdraw from the loaning market.
The value of listed stocks increased
almost $780, 100000 to May this year
while new listings added another $1,000
100000. Brokers loans during this
pertSd rose but $3.50 100000 and security
loans around 350,000,000.
The huge brokers' loan drop Of
1000, 900, 900 during the month of june
brought the total brokers' loan dowr
to S3,721 100000. the lowest leve
reached since August, 1917.
The New York banking situation
while complicated somewhat because Of
the need for taking up the brokers
loans, formerly carried by outside banks
and private corporations, Is in excellent
shape, judging by the June 80 call re-
ports.
OF the $4,000, 1000 900 of taxes levied
this year in the United States, about 75
per cent of it is asked by the State and
local governments and one-fourth by
the Federal Government.
This is three times as much as wal
raised in 1913. But every year since
the total taxes levied have risen from
e400,000000 to $500, 000,0 900.
So when the Bureau of Railway Eco
Monies announced that $4,000 miles OF
railways employ $4,000 people, 1890
locomotives, 521 900 freight train cars
and 10000 passenger train cars just te
produce enough net earnings to pay
constantly increasing taxes to the front
Today one-fourth of the total net in
come of railroads goes into taxes
other industries show much the same
percentage.
When conditions are prosperous anc
everybody is making money tax bills
in the United States have been paic
commodity prices and heavy unemploy-
Tnent it becomes a much more serious
one.
That is the situation today.
Another we'll known writer on bust
ness conditions. Theodore M. Knappen
in the Magazine of Wall Street. sug
gests that the third and fourth quarter
reports of corporations net earning
will be disappointing and will tend Il
Offset in the public mind the certain
consequences Of the resumption Of bust
ness activity.
He says: THE writer is inclined Il
think that August will witness the ces
sation Of the business retreat, but tina
the upturn will not be undeniably il
evidence until after the first of tn
year"
Quoting the committee on economi
changes 10 the effect that while tech
nique Of balance for the control Of tn
business cycle may in time be worke
out. he adds, lit might, If attained
tend to impede progress"
Then says Mr.. Knappen: 'Mankin
still may require the alluring hazard
of uncertainty and the sting Of defea
from time. to time to make it put fort
its best efforts"
(Copyright, 1880 by North American News
paper Alliance