Evening star., 1948-12-19
Administration Seeks
To Calm Fears Of
Business Leaders
By Chories r. Speore
North Ams,;<on N.w,pop.r AIIione,


NEW YORK, Dec. 18.-Members
Of the Truman administration this
week advised businessmen to remain
calm, not to be disturbed by the
Washington reports Of higher taxes
or the Wall Street exaggerations of
falling trade and growing unemploy-
ment.
Vice President-elect Alben w.
Barkley stated there would no in
crease in general taxes" but made
no prediction concerning the sub
ject of "excess-profits taxes" in
which most interest centers. Sec
retary of the Treasury John w.
Snyder told delegates to the credit
division of the American Bankers
Association in Chicago they have
nothing to fear as the Truman poll
cies will continue, and that this fact
should give the Nation increased
confidence in the stability Of present
high business levels"
1t will take more than this to do
it. Incidentally, Secretary Snyder
reasserted his decision to support
the Government bond market.
Also at this meeting was DR.. W.
Randolph Burgess. chairman Of the
Executive Committee of the Ma
tional City Bank Of New York, who
has been a consistent objector OF
the Treasury policy of "pegged
price" for Government securities
This he would like to see abandoned
1t was just a year ago that this
plan was put into effect, and 1t has
developed more contention and Bit
terness than, any Treasury action
since the price of gold was revalued
in 1884.
Outlook Improves.
The business scene was slightly
cleared this week where, for months
it had been clouded by falling de-
partment store sales, evidence Of a
buyers strike against high prices
for household goods. clothing and
food, and "layoffs" by railroads
whose freight and passenger traffic
is dropping, and by manufacturers
in New England and the Middle
West.
New York stores reported better
sales as the week advanced. Iron
and steel production, electric output
and other trade indicators were
above last years totals. Among the
dividends increased was that of the
Northern Pacific Railroad to a s1.50
basis from 81, following a lift in the
Burlington Railroad rate to an So
bass.
On Friday the Mediation Board
granted the incorporating railroad
orotherhoods an increase of Z cents
an hour or $3.50 per week under the
proposed new 40-hour week. The
railroads have been setting aside a
fund to meet the expected increase.
Wall Street had a rather dismal
week with tax selling representing
a high proportion of daily transac-
tions. However, a Christmas tree
again was raised on Broad Street,
as has been the custom for many
years; and brokers gave their EN-
ployes bonuses though their net in
come was small in proportion to
gross receipts. Sales of stocks so far
this year have been $4,000, 900 shares
greater than in 1947.
Canadian Recovery Watched.
American bankers are much i'm
pressed by the recovery in the Ca
madam situation since the end of
l947. At that time, the outlook for
the Canadian dollar was gloomy.
Today it is excellent.
The gold and United States dol
lars held in the Dominion have risen
from S501 100000 to $3.50, ,OO0, 900 in
the past nine months. This includes
a sl5O,000.000 loan from this coun-
try.
The reduction this year In imports.
as a measure of economy, and a
substantial increase in exports have
brought great improvement in the
Canadian balance.