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Show The National Enterprise , November 24, 1976 Page twelve Profits, Capital, Reliable Money Endangered Continued From Page Three 1975, the figure stood at 4.4. Capital Crisis Lurking viewed by so many with such And all this, at a time when the consensus of the nations board rooms is that a severe capital crisis is upon us. For profits and savings, and capital formation, are two sides of the same coin,' said Patrick M. Boarman, economist and author. According to a New York Stock Exchange report, the U.S. will require $4.7 trillion during the next decade to finance American industry. The report foresees $2.4 trillion in business depreciation allowances, misconceptions about profits so deeply entrenched, it is little wonder that profits and the profit system are $500 billion in and $1.1 retained earnings, trillion in personal savings. Expected shortfall: $650 billion. With the aforementioned skepticism. Conversely, Bleiberg admitted, business itself is to blame for deliberately overstating its profits. A move toward current value accounting would reflect real profits, he conceded, but there will be strong resistance in the investment community to convert to such methods. Of course it will impact reported profits," he said. And naturally, it will diminish the appearance of results and the performance of top executives will look worse." In this vein, Bleiberg pointed to a newly effective Financial Accounting Standards Board rule decreeing that all gains and losses from currency fluctuations (translations, as they are called) must down reported earnings by adjust their tax bill accord$33 million, while Xerox dis- ingly. closed that owing to charges Sadly, speakers addressin the impact of foreign cur- ing the group had little good rencies on the dollars," an news about the performance d increase of U.S. business and its maranticipated whatever the promptly be run costs to results through the income account. FASB-8- , Known & Unloved one-thir- earnings over the like period in 1975 had turned into a decline. And what profits there are, Bleiberg said, are growing less and less adequate. Real return on sales and investment is the lowest in the last generation. Since the in While basically a codification of widespread existing practice, FASB-8- , as it's come to be known and unloved, did compel one sweeping change. Instead of permitting com- kets. Capital formation, according to Boarman, lags even Britian: A classic example of social envy and economic know-nothingne- tional sources of savings for business expansion are tending to try up. Market value of NYSE listed companies declined 50 percent in the decperiod between 1950-196- 5 when return averaged a re- ade between 1965 and 1975. spectable 15 percent, it de- With unemployment near 8 clined to 9 percent in 1975. percent and the business comModem profits must be munity living in morbid fear of it is not put in perspective, he said, the President-elec- t, to demonstrate they are not likely business will hire new obscene. As soon as they are, workers when it is fearful of we will be in a better state of the consequences Carters affairs," Bleiberg said. True policies will have. Most distressing, a study reform, he concluded would be to allow companies, in their by two researchers at the current cost accounting, to University of Rochester entitled Can the Corporation panies to set up reserves, or d otherwise in the fashion of Generally Accepted Accounting Principles, smooth out peaks and valleys, the FASB, in hot pursuit of its campaign to overcome the time-honore- credibility GAAP, got tough." But the lions share of the blame," Bleiberg continued, goes to governments, including our own, for their feckless mismanagement of fiscal and monetary affairs." Pursuant to FASB-- 8 Exwrote xon in July-Septemb- er Survive? "CUT LOCAL TAXES is a 'do it yourself' handbook that could save the hard-pressAmerican taxpayer tens of millions of dollars." Senator William Proxmire ed You CAN Cut Local Taxes Once in a while, a book appears that promises to have a direct impact on politics. Cut Local Taxes is such a book. (Taxpayers across the country today are angry about rising assessments and property taxes. They have expressed their feelings by voting down bond issues and new spending proposals. Yet taxes continue to soar and citizens are looking with increasing concern for a solution to the problem. Cut Local Taxes shows that taxpayers can find relief. The author, professional consultant Robert breakPoole, Jr., has sifted through the throughs created by some communities. He highlights the best and most effective of these changes, with particular emphasis on reforms that can be by most local governments, large or small. In some cases, indeed, the savings can be startling. Medium size cities report average savings of about 70 percent after switching from municipal to private contract garbage collection. Thirteen communities in Arizona enjoy a new system of quality fire protection that costs half that in nearby communities which use conventional techniques. Large economies can also be obtained in the school system and the public works department. Virtually none of the reforms described in the handbook entails a drop in the levels of services. Some actually improve the quality of services provided, by shaking the local government bureaucracy from habits. This aspect makes lethargic or the breakthroughs attractive to voters who want to preserve existing services at less cost to the taxpayer. The descriptions in this book are clearly worded and simple to understand. You do not have to have a degree in public administration to profit from Cut Local Taxes. If you are a taxpayer looking for ways to economize in local government, you will find them here. A special reference section shows where you can get additional hard facts once you have targetted an area for your efforts. And a chapter discusses the potential rewards and pitfalls of different ways ideas into public deto introduce the bate in particular, how to launch a political campaign or start a taxpayers' group. cost-cutti- self-defeati- ng cost-cutti- ng Tradi- ss. concluded that government is driven relentlessly to bargain away the well being of one group to ensure the well being and support of another. No, they surmised, the corporation will not survive. The political sector will triumph over the private." Shipments Scheduled to Begin Gold Silver Exploration Corp. (OTC .05, .06) expects to begin shipping ore to ASARCO in SALT LAKE CITY Mont, this month, according to president East Helena, ng If you want your local taxes to keep rising, you have only to do nothing. On the other hand, if you want to keep what you have earned and prevent your community from succumbing to fiscal ailments, you will find the ideas in this handbook most useful. They can do the work of a meat-ax- e with the precision of a scalpel. I ( ) ( ) ( ) I enclose a check for: $2 for single copy $1.50 per copy for two to ten $1.20 per copy for larger quantities Name Address CityStateZip Posts Earnings Kiddie Inc. (OTC 2.375, want to stop wasteful spending. Send me the Cut Local Taxes handbook. Kiddie Products AVON, Mass. REASON PRESS Box 40105 E Santa Barbara, CA 93103 YES John M. Simpson. Assays of the ore from the Sheeprock Mine 12 miles east of Beaver, Utah are 53.24 ounces of gold and .08 ounces of silver per ton, he said. Gold Silver Exploration holds 20 claims in the Sheep-roc- k area, 10 under lease option, and 10 that Simpson located himself. Products, 2.875) reported sales for the first nine months of 1976 were $7,004,475 as compared to $6,137,466 for the similar period last year. Net income was $271,239 as compared to $213,908 for the first nine months of 1975. Earnings per share, based on the average number of shares outstanding in each period (447,667 in 1976 and 451,000 in 1975) were $.61 for the first nine months of 1976 and $.47 for the similar period last year. |