Evening star., 1950-02-08
investment Incentive
Baked by Taxation,
Bankers Group Told
By Edword c. Stone

forces that have given America
its strength-a strength that grew
out of incentive and strength
that is unique among the nations
of the world.
This statement was made by
Robert P. Boylan, chairman of
the Board of Governors and pres
ident pro tenn of the New York
Stock Exchange, in addressing
400 investment bankers, members
Of the Association of Stock Ex-
change Firms, at the Shoreham
Hotel last night.
The American investor is the
forgotten person in this country,
he declared. Millions of men and
women would increase their in
vestments if given reasonable as
surance that their dollars would
receive fair treatment.
What Investors Fear.
Fears uppermost in the minds
Of these investors are restrictive
taxes that diminish the incentives
of both the stockholders and the
managers of business; the enor-
nous growth of the Federal
establishment and the cost of
government; tax-free organiza-
tions that are doing an estimated
$10,000,000,000 business annually,
resulting in unfair competition,
and the taking over by the Gov
ernment of lending functions
properly belonging to private cap
itaI markets.
Mr. Boylan declared that rela-
tionS between the Government
and business are cordial, contrary
to some beliefs. What we call the
good life can only be stimulated
by incentive. by wise monetary.
tax and debt management pol
icies, he said.
Capital Gains Tax Scored.
Another serious inequity in the
tax structure, which has very
damaging consequences, is the
capital gains tax. It is form of
confiscation but complete elini-
nation is not to be expected at
this time. Mr.. Boylan said.
The investor who finds that he
cannot use his own judgment in
selling his securities because of an
arbitrary time factor, becomes
apathetic and turns to tax
exempt issues.
Underinvestment is putting
cloud on the economic horizon
that must be checked, Mr.. Boy
Ian declared. as he presented
the views of 600 Stock Exchange
firms.
Benjamin H. Griswold, Sd, presi-
dent of the Association, well
coined SO members of Congress
and high Government officials.
among them William McChesney
Martin, former president of the
Stock Exchange and now Assist
ant Secretary of the Treasury.
Mr.. Griswold presented two pic
lures OF brokers. Balzac said: "I
do not regard broker as a mem
Der of the human race" Oscar
Wilde took a different approach:
With an evening coat and
black tie anybody, even stock
broker, can gain a reputation for
being civilized"
Dynamic Economy Needed.
Seriously, Mr.. Griswold asserted
that the success and existence of
the securities industry is depend
ent on progress and a dynamic
economy. "We are just as anx-
1ous to eliminate the boom and
bust from our economy as any
one, and believe it can be done
without stif1ing or restricting in
centives."
: The association president gave
some impressive figures on the
number of people holding securi-
ties listed on the New York Ex-
change, and concluded with a
strong plea for the continuance
OF free enterprise and a stable
economy.
: Clement A. Evans, chairman of
The National Association Dealers.
and A. T. Armitage. president of
the Investment Bankers Associa-
Mon OF America. also spoke.
Emil Schram, president of the
New York Stock Exchange, had
been expected at the dinner, but
he is now in Florida for a rest.
! A final board of governors meet
ing was to conclude the three-day
conference this afternoon.
Real Estate Loans Higher.
Combined real estate loans in
Washington banks for the week
ending February l were slightly
higher than in the preceding week,
the Richmond Reserve Bank re-
ported today. Commercial loans
were down a bit.
Total investments were con-
siderably lower due to little buy
Ing of Treasury Bills. Demand
deposits were lower but time de-
posits were up.
A new store, to be known as
the television center, will be
opened at $40 Eleventh street
NV, on February Is, Ben Wien
er announced.
State and municipal financing
in January totaled $235. 1858 ,044 VS..
$199,063,341 year ago. the Bond
Buyer reports.
The National Association Of
Mutual Insurance Agents will con-
fer with Senator Byrd next Mon
day, in a "Tell It To Congress"
move.
N. G. Benson, auditor of the
New York Statler, has been ap-
pointed manager of the William
Penn in Pittsburgh.
Haller Heads Auto Dealers.
Fred L. Haller of Washington
was elected president of the Ma
tional Automobile Dealers Asso-
citation at Atlantic City today. He
is a Hudson dealer, has been ac-
tive in NADIA Is years, and is a
former president Of the Washing
ton Automotive Trade Association.