The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-10
Liberal Viewpoint
BY DIR. HARRY ELMER BARNES

]
THE Taxation of Banks" by Lewis H.
Kimmel National Industrial Conference
Board. $3.50
Money and Credit" by R. V. LETTER
CHarper, s450).
Women Workers Through the Depres-
sion" Macmillan, 50.
THROUGH much has been written on banking
i in general too little attention has been given
to the problem of the taxation of banks Mr..
Kimmel gives us the first comprehensive survey
of the subject He finds that the most notable
and satisfactory trend in bank taxation from
1921 to 1884 has been "a trend from the property
tax on share value to the use of the net income
tax" He holds that the net income tax is the
best manner in which to tax banks
"rTl,e income tax states the direct relation
RI H.-rr taxes and net income and has resulted
.- creator ease of collection. The income meas
ure "a bank taxation provides greater HeXblllty
in the tax costs of banks than other methods.
The element Of fexibility is important because
it permits the individual bank to adopt the par
ticular policv that is called for by the eXgencieS
of the business cycle and that will harmonic
with the requirements of broad banking policy.
For this reason, together with the elimination Of
the direct relation between taxes and additions
to the capital funds, the use of net income in
taxing banks has advantages not possessed py
any other measure
THE nroblems of money, credit initiation and
prices are not being agtated with the avldlty
or ferocity that they were being handled just
a year ago now, but they are with us just the
same and are just as important underneath Che
externals of controversy as they ever were.
Professor Leffler has written a clear, compre-
hensive Introductory manual on the whole SUBJ
iect of money banking and credit 1t is descrlp-
tive and analytical rather than controversial IN
tone.
TIE is skeptcal of the Warren theories and
4 i the monetary policies followed by the
Roosevelt Administration in its first year, put ne
is not at all savage about them He sees the
money and credit problem as one phase OF a
larger issue of economic planning as Whole,
designed to f1atten out the business cycle. He
finds no hope for ending our Scandalous volume
of bank failures save by the adoption OF higher
standards of banking practice. He fears that
unless prosperity returns fairly soon the IN
creasing public debt may result in extensive ana
dangerous initiation. If the public credit is
placed in jeopardy, it may become necessary TO
finance Government operation by paper money
issues Personally he escheWS extremes OF either
optimism or pesSimlsm:
History probably will show that neither the
glittering hopes of the dreamers nor the black
pictures of the arch-conservatives will be real
lied in the monetary and economic experiences
of the country"
The American Woman's Association has made
careful study of the impact OF the depression
upon it's working members. The study is edited
by DR.. Lorne Pruette. 1t is based upon eX-
tended missionaries and interviews. Most of
those studied were salaried workers and in the
upper reaches of income. The average earnings
even in 1888 were $2428 for the year, which
rates high when we remember that the average
income of both male and female workers in that
year was under $1,000.
L VEN so, the relatively high salary of $2428
II was a considerable decline from the $3035
a decline in salary between 1929 and 1888. Some
1913 out of 1902 of these Salaried workers were
unemployed at the time of answering the ques-
tionnaire in 1888. While relatively fortunate in
all respects as compared to the general run of
women workers, even this selected group has not
escaped the evil results of the depression. Miss
Anne Morgan the president of the American
Woman's Association, comments as follows on
this point:
From these studies it is clear that the losses
these women have suffered during the depres-
sion years since 1929 have not been merely eco
nomic, but-nore Importantly psychological as
we'll. Extreme insecurity and the lear of the
future constitute very severe burdens for all
human beings. If long continued they threaten
to destroy the spirit of American life, the initi
ative, the courage and cooperation which have
built up our country.
If this is true of the more fortunate women
how much more true it is of the "other half
the mass of women workers. For this one must
turn to Grace Hutchins' excellent book, Women
Who Work"