Show d or of Production Js Je Boosting Prices Price Throughout Country I I Is Jg Freezing Credits National p Campaign for Pr Pro Pro- Is Needed Mill l 3 ions Spent in Luxuries I i tReasons Reasons for Big High It ii Money l Rates By Percy M. M Cropper The Herald Financial Editor EditorS j l So S conditions have grown more oro complex during Juring tim tho past week to reports fro from various arlOUS commercial c centers l-b l hesitancy products has hIlS hocomo more determined supplies on hand ari arc ber be- be rt r bo on the shelves and in In rn raw v material and every eory effort made ine towards securing moro oro production There Ther is a n general cry crye e 8 of money yet credits aro arc being frozen solid Tho elasticity eal reserve bank is becoming as ns solid zt as ns j in the old days das Eastern the t to relieve t the strained situation ing taken from reserve c o I tat states and there 15 is somo some feeling that the peak of the load has bris I naturally turned th the 1 f iii 11 monc money centers towards kiana a d co 0 they hMo have than their share of at the 1 moro more Tt Yet tho to methods that I I c m piratical To ent our OUt new banking system with tho the business of ot An excess profits tax try of ot bus busl- busl 1 ft l great deal continual shifting to a. a squeezed Queued too hard bard a that 1 I II an n outcast a as far tar as asi nations Is con- con with European i Pi 8 continued teel feeling ng that Con- Con UUdo something to make old oldport port tt rt worse and tho the wringer I that i Is 15 being applied by tho the stem to compel compol people to g gOIs go ls Is causing the business man te of ot a large discount rate reserve bank Is no dir dlf- Wm D what Is 15 being dono in oth- oth Within tho the pa past t month and India have lae raised taito i to the highest In Jn years yeara In I irate i te has been raised to s 8 per 1 war war TV W we are ara crying Wolf hd hd leaving the door open pr profiteers when we should be beJ beS ber r S J campaign of ot production j of ot labor In most every re e Ii should be a a. a movement In iery try ery citizen of ot tho United oud tako take part to bring about Get production and would die a natural bavo b been cn trying to hold a no under water Wlter and whenever er wo we e. e have hare baIt it placed paced it bobs up ere re else I Campaign on one 1 campaign of ot get together Feato e-aie production would causo cause a aage ange ange age in conditions Watch ratch tho the bouses in Salt Lake Lako each IJ and you will probably notice ople attending the various number third one aro ago EO They Tiley were vere pro- pro Mno during th the titheS lime ent sent in Salt L Lake with say jay in is who I t noo O a moi month l lor or or In in a year car Is 0 11 flee nu of ot Utah nr Are short hort at pros pros- FoDo men men inca If It tho copper coppel Inre Into In- In re t to suddenly become active Cd lid probably be bo a shortage 0 of Like Uke th the farmer tanner the tho mining lU bLI 11 to keep p on with an open t what ho shall receive Willed conditions ho cannot id 4 4 He Ho I Is forced to keep his hlson Jon on or lose JoSt thousands fly Ty y and nd building building- it up afterwards T boon bean attracting a n. great of ot Attention sinco tho the buy- buy Ua lie beran ean to got acquainted foreign n bond market The at- at est eu of ot foreign n bonds and tho the chances chancos havo have prObed u ed d a decline In our own bonds i- i I extent stent Liberty bonds showed declines this week At the T price of ot these theeo bonds bonda the yield I er perhaps than any time since sinco continental bond days das The fol- fol able Sable shows s tho the yield of or govern govern- nd ad although the figures at I we he bonds bonda are now selling sailing Is be- be t. t given in tho the table j 1 g E e. e Q a PC s n S io D C 0 c. c I 4 Victory 4 tie Hs is 96 6 80 6 O Lq TIK j w 3 I t t. t 15 15 1928 91 8 8 Liberty JOeL i Iii 15 1933 i 87 81 c 61 G 56 6 6 Liberty rl jB No No- Noi IB i 16 1927 1921 S eI 37 87 PS S. S Libert Liberty 1st let f Juno JuM Jun i IE Iii 1932 n I VV 90 90 32 S. S Liberty j Nov os ov 15 Hi 19 1927 1 1 V 6 15 B 05 5 Liberty 1st let x 1 no o 1 ii 1932 r 90 90 B 12 12 87 S 8 Liberty 1st let JUhe i Hi 1932 I i. i 01 IH 1 n. n I it I ou i iu ile IC le at C option pt of t g government t at l any T Her fter i r callable lat dates s noted above us s marled marked are issued In denom- denom ns of or less than 1000 Ul h Money Rates ithe Othe cause causo e of ot high mono money rates letter of ot Goodbody Co r York says sas tnt ent monc money rates aro are excessively or the for following reasons the world war waste of or Uj mia not been worl repaired o the tho doubling and quad quad- I ot of prices makes the doubling of ot money nece necessary to the same volume of or business 4 credit Is b being InC used e es- es ely iy In speculative U ve operations ortons L uso of ot great extravagance 01 In Inv Ulc v and private an and the tho thel l ot f thrift and economy by tho thol l last of or these reasons Is not tho n a importance Our own govern govern- I wil rJ wIIl Bevon soven billion dollars R tat r. r This hla Is ls a about out ten times iu t spent any year before tho the war var K i j ls Is Attested by the tito the if d consumption of ot 1 uch as Jewelry cigars I silk BUIC lk automobiles nC to Byron Dron Newton the port ort of ot New York more t 0 of ot the gems of ot tho the I the ni diamonds the tho rUbies rubles tho the are ure re now v In ln America d upon this fact Mr Mr- dl i says ears ln In Commerce n of ot April 14 U reo Ce Is 11 no particular occasion for tor drawn or V boasting because Amer- Amer th the tho Jewels of ot tho the world Ih ti such uch Volume Somo Some Persons it I a l bad ad sign elen Barbaric r I recedes precedes deca decay Ul Ki credit ha has haa be been ben n wasted d d ton Is bc beyond ond Question In Inn d. d a nand n and I n Bc schemes Queston particularly u movIng Pictures are aro The for tor or tho the higher bank I to panic panl In ln JaPan is and a n this COUntry there has hai ha been d Sated 1 tn speculation ton In real roal rs 8 eg- eg commodities rid ml especially Ja sugar Speculation in fn rn- rn ha har las alf also been ten exten- estimates that 10 10 companies haVe havo been floated n in tn the tho f i United States Th The hd to toi to- to tat tal tl capitalization of or those floated here I th the tho armistice was signed Is close to tour our our billion dollars Expect High hates Those These aro are sufficient reasons why rates aro are high We Ye expect them to stay high until there thoro hag haa boon been a financial collapse followed b by a business busi busl- ness depression This may 11 occur in a arow afew row few weeks or months or not for tor several soy sev oral eral years Y There Thero are arc however m many signs that a crash Is not far Crr off ot There Ther uro are also some Bome signs notably underproduction underproduction that serious financial trouble ma may not come como soon Wo are are however living In a new world and we should not be bo guided too much by precedent The Tho 10 general letter loler on Oi conditions leaned Issued by tho the Utah State National bank lank has hs tho following Dividend and interest disbursements for April will wm be bo 37 dollars compared compared with wih million dollars dollar dolaN in II March and million dollars ni milon figure In Sn April Apri of ot last a t oar Divi thuds will vIll wil account for tor 95 i JU million dolIn dollars dol dul II lars In- of ot the amount compared with T lh 9 92 million year aco o and Interest payments will be G million compared with tho the same Bama amount a n year jOH ago ugo Government interest wilt will total million dollars with wih 11 11 I million dollars paid In April th I decrease being belle duo due to bonds bou bought ht and aad r retired tred by tho the government go Interest in crest terest paid b by corporations will wi be he 11 G million dollars compared with 11 milion mil mil- mi lion ion lon dollars a 0 year 11 ago Bank Dank clearings for tor the tho principal cities for tor March amounted to 41 H billion dollars compared wl with S 33 3 billion dol dollars rs the ho previous month and 30 billion dol dol- lara ars a year car ago ngo Clearings exclusive I or of f Now New York Cl City were ero nearly 19 billion dollars compared with wih 15 IS billion bilon the he previous month and less than 14 1 billion dollars Colan a a. J year car n ago the Increase I over O a n year ago being 39 per por POI cent Of or ortho ho tho principal moro more than 60 had clearIngs during March ex exceeding any previous pre record for or any mon month tho wool consumption during February amounted to thousand pounds compared with thousand pounds pound ho time previous VII 1 month t ir and iL 20 thousand I U in a 01 11 itC i Copper s sales I for or lr March are aze rc reported por cd I at it 3 O. O million milon pounds pounds export saTes safes being 6 62 million pounds Sales Sale for tor February wore 89 million pounds and andor for or January 39 million milon pounds Receipts or of zinc and spelter at tho the principal market for the calendar year ear to o April 17 1 worn wern 1600 1500 thousand slabs compared with 2044 O. O i thousand slabs for or the he samo same period a year oar ag and ship ship- were wera 2809 thousand slabs comred com com- pred red with 2987 thousand slabs for tor forthe the the he same period In 1919 Tat lax Ix Th The Tho Mechanics Mechanic Metals National bank ank of or the Cit City l of or Now New ow York I t says sas In n its Is May Ia lete letter It I has been heen estimated that tho the United States government go expenditures for the thc fiscal year car en ended ed June 30 next will wil total otal This does docs not include in- in elude lude the proposed soldiers' soldiers bonus which if It granted would certainly exceed equal to the total ora a o annual prewar government expenditure for or a number of years earl Appropriations for tor or tho the fiscal year car 19 1921 1 are estimated at though Representative o Mondell londel has promised a reduction of 20 26 G I per pcr cent from this total total The Tho situation is greatly confused contused by b- ho tho coming election electon In November for tor fora tora a new administration may mean meah a now fiscal policy polley Assuming however a continuation of or present policies and of at resent present present expenditures this this' money will willbo willo wIl bo o raised by taxation as Secretary Houston louston has announced that there wilt will willio wll bo be io no o moro more bond Issues Much of ot it will 10 be raised b by tho the same Bamo taxes as now ow exists and It Is understood that neither party In Congress Congress wants to change chango tho the taxes applying applYing on income or for tor or the tho present calendar year ear car But nul opposition on one ground round or another to ono one tax In iii particular particular- t he the e present excess Pot profits s tax tax tax-is n-Is n Is con- con growing both within and outside outside out out- side of or Congress so that Its Is radical modification or elimination seems thin aln at tho the earliest earlest favorable tun It In practice the tax has proved unjust and vexatious It has discoursed aged sed economy and promoted waste That is because as a a n. tax It is fundamentally fundamentally funda funda- mentally unsound Taken together the tho excess profits and lc the tho income tax constitute constitute con con- a double tax the they take tako from tromm froman m an individuals individual's income before ho gets It t and mc after aCter ho gets It I. I Both taxes como come almost wholly out of ot the Investment Invest invest- mont ment fund and this Is ono one of ot their most mORt serious serIo s drawbacks Tho The money that hat has hns been taken from a n corporation In n ece profits taxes would in most Instances havo have probably be been on In enlarging factories Installing new ma- ma nr or In ln pr productive i o capacity t Similarly tile the mono mono mono- taken In taxes would beyond what W was ns S necessary for personal per per- onal consumption havo o ha been Invested and would havo have gone to Increase productive pro pro- capacity URN linn Angle AngIe Tho Tio W. W J. J Wollman olman Co Review ne of ot 1 New cw York gives another view of ot the tax situation as aH follows follows- No matter mater how urgent ml may be bo tho the Individual political exigencies of ot our senators and representative Congress should not adjourn until it 1 has hns instituted n a complete and anI sane aano tano reform of ot ou our taxation methods There should La be jo no timorous postponement or dallying laity dally ing ng with wIth this Important all nl question Our present system can en load to to a serious seri ou ous business s depression if J. J indeed It Itla itIs 1 is la not already alread tending In that tion ton If I It comes comB tho the people should nd probably will wi place the thc blamo blame it belongs at tho the door toor of Con- Con irr cross ros oss Under tho the excess profits tax and ho method of levying the income tax with lh its Is surtaxes the people have havo be been on bearing a n needless burden Tho The poor have havo suffered under It It tho the mo moderately moderate moderate- rich have havo been and tho ly Iy gouged very rich have been boen forced to dodge Into securities sub sub- tax exempt They wore were c to unfair un-American un discrimination and tho they havo have done dont their best to t escape cape I it J it DC lO to ura a i. i Jon Jong and stinging indictment n against aln t our taxation methods but hero aro are a few tew of ot tho the leading accusations I 1 Our present present system has been tho the chief causo cause of at the high cost of ot living that that Is Is the chlof cause causo that might ha have havo 0 boon been avoided Tho The department of ot Justice estimates that this has in- in tho the living cost to tho the extent of ot 2 per cent 2 It I has crippled Industry and and busIne business bus bus- Ine moss iness s by virtually causing a D mon money arnine The funds that used to be bo available for enterprise for building houses equipping equipping- our railroads and financing manufacturers has been locked up In tax free securities 2 3 2 It I keeps the people mouths months ahead in debt to the government while tho the government o keeps hoops borrowing In expectation tation of oJ collecting collecting- tho the debt 4 It I II I Is a n direct invitation to cx- cx Con Continued on Following rage Page I NEED NEE OF PRODUCTION IS BOOSTING PRICES I Continued J From rom Preceding Pago lra and waste wasta In tire Uvo operation through the UA Incentive It offers to needless costs costs- In operating expenses All Al this cost Is borne b by bythe the tie consuming public f 5 S Although I designed to hit the rich It bears most mostly heavily on un moderato mod- mod orate crato incomes for tho the rich can cs- cs capo cape through Investment In tax ex empt emt bonds mx On SaleM Sale These are arc called so-called so-caIet so destructive criticisms We e now come to tho the Question question queston Ques ques- tion ton o of a substitute for present meth meth- No better beter recommendation can b be bo made mado than that offered by tho the Chamber of or Commerce of or the United States which urges tho the adoption of or ofa ofa orn a n tax on gross sales or turnover with witha a graduated tax on p personal ronal Incomes I and an Increase In tho the exemption on those thoo Incomes Tho Bacho Review v ne of or New York says sas The Tue tax on en gross sales which Is receiving much attention in and out of or Con Congress res should not bo be confound confounded con con- I found founded d with wIt tho the vicious tax to the ultimate consumer such as is now levied for Instance on oti soda water theatre tickets etc The Tho gross ross sales tax of 1 per cent would be bo |