Evening star., 1932-05-15
GOLD WITHDRAWAL.
FROM j. S. LAID TO
POLITICAL FACTORS
Foreigners Disturbed Over
Uncertain Course of Amer
ican Fiscal Measures.
ROBINSON BILL WAITS
ON BUDGET BALANCING
Goldsborough Proposal Is Held
Futile Effort to Alter Work
ings of Economic Law.
BY DIR. MAX wINKLER.
Special Dispatch to The Star.


Special Dispatch to The Star.
NEW YORK, May IA Incessant
Withdrawals Of gold from the United
States due to the misinterpretation by
Europe of Americas fiscal measures and
the suspicious which tactics in Wash
ington arouse abroad were responsible
in large part for the recent renewal OF
liquidation in the stock market.
Apparently. the principal difficulty
seems to reside In the likelihood OF the
early passage Of the Robinson bill de-
signed to create more than 50 ,000, 900 900
worth of bonds for public works and
unemployment relief. 1t is only nat
ural that the first reaction to the meas
ure should have been unfavorable.
On second thought, however, 1t must
be realized that apprehension over the
project being put into effect is not war
ranted. 1t Is within reason to assume
that the fiotation Of such huge issues
cannot and will not be undertaken so
long as the budget remains unbalanced.
This Senator Robinson doubtless ap-
preciates, although no one questions his
sincerity in trying to provide work for
the millions of unemployed.
menting upon the Senator's proposal,
specifically points out that the pre-
requisite of any plan is balancing Of
the budget.
The Goldsborough Bill.
It is not yet clear how Representative
Goldsborough expects to raise the price
level through legislation. His efforts
are praiseworthy, and he doubtless ex-
aggerates when he states that the forces
which have brought destruction and de-
spair are those which are opposing the
legislation now.
The mere issuance of DEGREES does not
alter economic laws. Supply and de-
mand will continue to regulate these,
and little else. II prices could be ad-
vanced by a mere stroke of the pen,
other countries would promptly resort
to the adoption Of such remedies. Un-
fortunately, 1t does not work this way.
The crisis is fundamental, and it re-
qufres fundamentals to bring about a
change
In the meantime, Europe is apprehen-
sive. as evidenced by the Withdrawals
of gold from this country. On this
point Mr.. Goldsborough feels that Con-
gress should prohibit exports Of gold
within "a hours
Such step would not solve the situa-
ton. It would merely increase Europe's
suspicious, and, while there may not be
an official abandonment of the gold
standard. there would doubtless ensue a
depreciation in the value of the United
States currency In relation to its gold
value. 1t Is doubtful whether legislators
desire this.
Britain's Commerce.
Much has been said about the likeli-
hood Of an increase in Great Britain's s
commerce as result of the abandon
ment of the gold standard. April fig
ures, which have just been published,
show a decline compared with April,
1881. Of almost Is per cent. If account
Is taken of the decline in sterling,
shrinkage is in excess of IS per cent.
1t is apparent that salvation does not
lie in one country after another going
off the gold standard, but rather in a
genuine attempt by countries controlling
most of the yellow metal to help others
restore the gold standard, thereby per-
mitting q more natural flow Of COM
merce.
Trade. more than any other combi-
nation of factors, indicates the eco
nomic status OF country. the views Of
isolationists to the contrary not with
standing.
Proposed Tax Levies.
The proposed national tax rates will
not impose an undue burden upon any
class Of taxpayers, in the opinion Of the
sponsors The increase over the rates
under the 1928 act would seem to re-
veal. on careful analysis, that the tax
payers with lower incomes are in less
favorable position than the ones with
1nr 1y,A4 rrin yIftf n
no dependents and a taxable income of
SIS, 600 will pay, under the new Finance
Committee bill, more than three and a
third times as much as under the 1928
act, while the increase on a $780, 200
taxable income is about so per cent and
the increase on a 100000 income about
46 per cent.
Single persons with an income sub
ject to tax of $4,000 will pay 154 per
cent more than under the 1928 act.
The increase on a $50, 900 income Is SO
per cent and somewhat more than rs
per cent on incomes Of 100000.
Liquor Revenues Abroad.
Contrary to prevailing beliefs, reve-
nues derived directly from the alcohol
industries abroad are not very large,
especially in relation to the total re-
ceipts of the respective countries. That
the indirect income from this source is
quite substantial is generally admitted.
Germany Is about the only country
of Importance in Europe where liquor
revenues still constitute material part
of total receipts. For the last fiscal
year income from the beer tax and the
spirits monopoly aggregated about
$184, 100000. But even in Germany 1t
is only per cent of the reich's total
income.
In Hungary receipts from beer and
alcohol are estimated for 1882 at
less than $4,000, 900, or slightly more
than u per cent Of total governmental
revenues
In Rumania, the tax on beer, wines
and alcohol in general was estimated
for the past year at $7,500, 900, or about
per cent of total income. It is under
stood that actual figures for 1881 are
materially below estimates.
The situation is similar with regard
to other European countries Of which
statistics are readily obtainable.
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