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Show the war years will be exhausted by the end of 1949, Obviously, this conversion of liquid assets of business Into capital capi-tal formation is not a completely satisfactory substitute for venture ven-ture savings. Such assets, in the hands of existing businesss,.do not provide a source of capital , for newly-formed enterprises. Still, they have permitted the economy to operate at a high rate. The important thing is that this situation is temporary. In a very short time, the $9 billion of capital capi-tal annualy being supplied by sales of business holdings of liquid assets as-sets will need to be replaced by direct investments by individuals in business enterprises. If the savings sav-ings requisite for such direct investments in-vestments are not possible, the nation's hopes for prosperity and progress will surely be frustrated. JFashington Snapshots How the present Federal tax structure destroys sources of venture ven-ture capital on which progress and prosperity depend leaves a question: Why, in the face of this deficiency of venture savings, do we have at this moment a record high level of employment, production and national well-being? i These facts seem to refute any claim of the economic necessity for tax reform. The answer, however, how-ever, is that venturei capital is being supplied by the accumulated liquid assets of business. These are now being sold to the public to provide capital at a very rapid rate about $9 billion in 1946 alone. This has a two-fold effect. First, ite supplies a large portion of our capital needs. But, second, it is using up accumulations of such assets. If the present rate of liquidation continues, the excess liquid assets accumulated during |