Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-13
END OF DEPRESSION
seen WITHIN YEAR
SWarthmore College ProfeS,
Sor Also Predicts Another
Slump Within Ten Years.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, April 13.-Prof. H. F.
Fraser of Swarthmore College says the
present industrial depression will end
in about another year" but another
equally serious hard-times period will
come within the next 10 years. He
therefore advises the great industrial
corporations of the country to work out
an unemployment insurance policy to
meet this recurring problem.
Today only / per cent of nearly
40,000,00 workers are insured against
unemployment by their employers. If
these employers do not find a way of
providing effective insurance, the State
will have to step in and make unem-
p,oyment insurance compulsory.
Prof. Fraser characterized the Brit
ish dole system "as great social ex-
pertinent" but said that it involved
major administrative difficulties. He
thinks the United States will not over
come periodic depressions until it
adopts a more stabilized monetary unit.
There's enough material for book in
that last sentence.
Foreign Taxation.
Who foots the bill for double taxation
on American business abroad? Judging
from the special report on this subject,
recently issued by the Federal Taxation
Committee of the Chamber of Com
merca of the United States, it seems
that pretty nearly all Americans pay
this
The tax imposed by foreign govern
ments on American business within
their borders becomes a tremendous
burden when these American firms nave
to meet a second tax on income in their
home country. This double taxation
has become such a dead weight, espe-
cially on exporters, that the Govern
ment for some years past has been COM
PEELED to grant them credit, which, for
1928, aggregated S34000,000. Naturally,
this loss in revenue must be made up
in general taxation, so I suppose one
might almost say American citizens are
indirectly paying taxes to those foreign
governments.
What is the solution? The report OF
the Chamber of Commerce urges the
Government to arrange conferences with
the foreign governments abroad and
hints that agreements might be made
similar to those already in force between
several European countries whereby
double taxation is reduced to a mini
mum. This would remove what is
widely regarded as an unfair discrim-
inatfon against American business
abroad Since the United States is the
ranking nation in volume of interna-
tional trade, the removal of such OBJ
stacles to its natural flow cannot fail to
do some good in helping to untangle the
existing snarl in the world markets.
Fast Air Service.
1t is now possible to pack your paja-
mas and toothbrush Monday morning
in New York and unpack them in San
Francisco or Los Angeles Tuesday after
noon by using the newly inaugurated
transcontinental affair service for your
steed. This means, of course, that there
is a steady schedule of both day and
night flying but lest any one be deter
red by fear to travel at night it may be
added that the route of the planes is
probably the safest long-distance fly
ing lane in the world. In fact, it is the
only one where night flying is used be-
tween such widely separated terminals.
Here are the factors that make it so
safe. 1t is the worlds best lighted air.
way. The sum of $1,000,000 was spent
by the Government to mark the ground
path of this route with beaeons and
Illuminated emergency landing fields. 1t
Is studded with weather-reporting sta
tionS-more than any other existing
line 1t is the longest radiophone-
equipped plane service. At no time are
the ships out of radio communication
with land stations. The companies who
operate 1t have had FIVE years expert
enee in large-seale commercial flying
service.
This new route increases America s
lead in air transport and indicates that
its leaders are planning big things for
its future development.
Price Of Silver.
Silver will not increase much in price
until revival in world trade takes
place. This is the conclusion of A.
Iselin & Co. of New York, who have
given considerable study to this subject
These bankers hold that the base OF
the trouble lies in an uneconomic rela-
tionship between the production of and
the demand for the white metal.
THE proposal to make China silver
loan with the object of revitalizing her
buying power and thereby helping Chi
neSe- american trade is not convincing, -
says this report. las for stabilizing or
strengthening silver, desirable as that
objective may be, the placing of large
quantity of new silver in China, pre-
sumably from stocks in the United
"
to debate still further the world price.
This firm says further that it does
not believe that any remedial action by
the government of India alone would
be permanently helpful. 1t would not
reach the heart of the matter.
In theory, international cooperative
action which would regulate the time
and flow of all government buying and
selling (of silver would seem helpful,
but whether such action is practicable
seems open to doubt"
These bankers think that only re-
vival in world trade will improve the
price of silver.
Airmail Service.
Air passenger service in connection
with the airmal service has been dis
appointment When the United States
Government, through the Post Office
Department, subsidized the airlines, it
was understood this would only be for
a short time, and it was believed that
the growth of the passenger service
would make the scheme self-supporting
within few years. But it hasn't work.
ed out that way.
W. Irving Glover, Second Assistant
Postmaster General in charge OF airmail,
has issued a warning in the current
number of Aviation, saying that from
the Government standpoint the whole
business is still on trial
I'VE are prepared to continue this
trial for a couple of years more" writes
Mr.. Glover. IF we do not then con-
slider that it has justified itself, we shall
go back to the airmail as a separate
undertaking, served by fast open-cock-
pit planes, Without thought of passenger
accommodation, and paid for only at a
rate which will cover the actual OK