Evening Star Newspaper, December 6, 1922, Page 15

Boxes 75¢ to $7.00 Always an atceptable present and one that can be used to advantage dur- eng the holidays. Comes in many beautiful shadcs. Sealing Wax Sets Neatly boxed, contain- ing the ost popular shadcs. ISKE -C *lthe closing up so far as possible of C ENGRAVING INVITATIONS H S Hutchins Buildis A 4 10th and D ts. N.W. Main 3089 Joyous With Musical Instruments Mouth Organs, 50c to $3.00 Toy Brass Cornets, $1.50 to $3.50 Toy Brass Trombones, $2.25 Toy Brass Altos. . . . .$2.50 ToyBrassFrenchHorn, $2.50 Washburn Guitar. . . $15.00 Steel Guitar. . .. ....$6.50 Hawaiian Ukulele. . .$4.00 Bonjo ............ $6.00 Violins . . . $4.00 to $25.00 -Banjo Mandolin.. . . .$7.50 ‘GROCE’S, e cDEVITT The “Family Gift” Fheme Matn . s e 1003 A lamp 1s a cheery lighthouse in a peaceful ocean of rugs and chairs. Concerning one priced from $12.75 to $83, make a “'see trip” to INCENSE A large stock of incensc and incense burners at popular prices. Albert J. Osgood THE PAGODA $3.50 Philadelphia $3.25 Chester - $3.00 Wilmington AND RETURY Sunday, December 17 SPECIAL TRAIN 0:25 A-M.. Philsdelphia Mandolin ......... $6.75 - well be oné of our 1fy” 3-pc. Overstuffed Suites for the living room. As low as $125 v Drop to 25 Per Cent in |tion |ITEM IN ANNUAL REPORT Head of Department Also Would Close Avenues of Escape From Federal Taxes. .Redu('lion of lhe. maximum income surtax rate from the present 50 per cent to not more than 25 per cent and existing avenues of escape from fed- mitted today to Congress. No general gested, Mr. Mellon expressing the heavy pressure on the larger xpayers to reduce their taxable in- comes” that new ones would surel found. He adds that the high rate: conditions which now -prevail and which, he asserts, are not wholesome from the point of view of business or industrial development, and, at the same time, are impairing the revenues|d of the government. | The more important of the methods used by the taxpayers to reduce the amount of income subject to taxation are listed by Mr. Mellon as follows: Deduction of losses on sales of capl- tal assets, with the failure to realize on capital gains. ‘Exchange of ‘property 4nd securitles so as to avoid taxable gains. ~ Investment in tax-exempt securities, and Division of property, creation of trusts and the like. “Not all of these things can be con- trolled by law or by regulation.” he continued, “and most of them lead to unnatural and frequently harmful economic results. To reach the evil the thing most necessary s the re duction_of the surtux rates them- ! selves, in order to reduce the pressure | &8 voldance and maintain the nues derived from the surtax. ntil some such readjustment is e the yleld of the higher surtaxes will tend, in the ordinary course of events, to drop toward the vanishing point. The wise course is to reform {the surtaxes now while the system | 8till functions, and at the same time to iclose, o far as possible, the gaps which now exist. On this basis the revision can_be made without loss of revenue, and, in the long run, with material benefit to the revenues. High Surtax Defeats Own Purpose. To support his argument that the high surtaxes gradually are “defeat- ing thelr own purpose,” he calls at- tention that while net incomes of all classes during the period from 1916 to 1920 increased from $6,295,877,620 in 1916 to $23.735.629,183 in 1920, and the number of returns from 437,036 in 1916 to 7.259,944 in 1920, the number of returns of incomes over $300.000 decreased during the same period from 1,296 in 1916 to 396 in 1920. and the amount of incomes over $3 | from $992.972,986 in 1916 to $246,354, 585 in 1920. ! In “earnestly urging” prompt adop- tion of the proposed constitutional amendment against the further issu- ance of tax-exempt securities, the Treasury Secretary says these securi- ties, now reaching the market at the rate of about $1,000,000,000 annually form the “outstanding avenue” of es- cape from the surtaxes. “With these securities available for investment, fully exempt as they are from federal income surtaxes,” Mr.| Mellon continues, ‘“investors who would normally put their surplus | funds into productive enterprise are ! automatically driven under the pres- sure of high surtax rates into invest. ment in tax-exempt securities, wit the result that the federal government loses the revenue, business and {ndus:. try lose the capital, and funls badly | needed for productive purposes are; diverted into unproductive and fre. quently wasteful expenditure. “This is a situation which cannot be permitte to continue without grave danger to our economic structure, as well as our system of taxation.” Pointing out that the present law limits the tax on gain in capital trans actions to 1213 per cent of such gai but puts no limit on the deduction of losses in such transactions, Mr. Mellon ' urges that the amount by which the tax may be reduced on accournt of losses from the sale of capital assets shall not exceed 1213 per cent of the amount of such loss. Check on One Avenue of Escape. “This would, to a large extent.” he asserts, “check one of the methods|f ‘widely used by taxpayers at the pres- ent time for decreasing their yearly income. The alternative is to refuse to recognize either capital gain or capital loss for income tax purposes, and if the present situation is allowed to continue there is no doubt that it would save revenue to adopt thi course. This is, in fact, the practice which has been followed in En‘ll.nd for many years.” As to the avenue of escape afforded in_the section of the law dealing with exchanges of securities, the ‘Treasury Segretary ges that the statute be amended so as to limit the cases- In which. securities may be ex. changed for. other securities, with- out the realization of taxable income, tc those cases where the exchange is in connection with the reorganiza- tion, consolidation or merger of one or_more corporations. Illustrating the actual workings under the provisions of the existing Nllaw for the exchange of property held for investment for other prop- erty of & like kind without the reali- taxable income, Mr. Mel- taxpayer who purchases $1,000, which appreciates may exchange that bond |for another of the value of $1,000,|5 together with $100 in cash, without N |the realization of taxable income. Says Privilege Is Abused. : “This provision of the act is being | widely abused,” he adds. Aside from his recommendations for tax revision, Mr. Mellon deals i N | his report with conditions generall. y over the country and with the opera- \ [ tions of the various divisions of the Treasury. He sounds an optimistic > | note as to the business outlook and reports substantial progress both in the reduction of the public debt and in economy in public expenditures. The past twelve montls, he say: have been marked by further liqui tion and recovery from dépreasion, and, more recently, by a substantial revival of business. Prices of com- modities have risen materially, the volume of business has been mount- ing to higher levels and -labor mrorfl;;i&ul thé country again is fully om| . !&'ha year is closing with bounti- 5 - 'THE EVENING STAR, WASHINGTON, D. U, WEDNESDAY, DECEMBER 6, 1923. crops,” the report continues,{ BILL AFFECTS ALIEN SUITS. |foreisn commerce committee, today “and the severe depression In e s u RN lful a i culture has been relieved. Banking| Senator Knute Nelson of Minnesotas, 3 RED“EE“ SURTAX |conditions generally chalrman of the Senate committee on |teNdIng the time under which suits money rates are ranon‘nbl > the judiclary, and Representative |May be filed against the allen pro- Is sufficient credit availab meet s all legitimate dde':!'na‘nam le to meet | samuel E. Winslow, ot Ma. erty under section 9 of the “Trading “In the Treasury the year h: chairman of the House interstate and 'with-the-enemy act. a reduction In the groas debt e - —_— ing to about $1,000,000,000, 2 anced budget for the fiscal year 1922, (UL showing a surplus of more than $300, T s tary Suggests 000,000 above expenditures and sub. stantial progress in the refunding o i reasury Secretary Sugg the short-dated debt, which has now Any arti been reduced to manageable propor- -] cle reserved 5. 0'?[“} l'nfl afford th?! ?I;l! t.I’l)l‘ a omn revival of b stry on Income Rate. Sownd ligean s meani aBdMOSNAEEY mas s up Injects Note of Warning. Into this situation, however, Mr. posit. Mellon injects a note of warning. H says the restriction of immigration and the general resumption of indus- trial activity have resulted in a acarc- ity of labor embarrassing to some lines of business. He adds that the ads are suffering from under- ment, and are finding it difficult to move commodities to meet the de- mands of business. As a consequence, farm products are selling too low the farm and too high at the distrib uting centers. C e eral taxes are urged by Secretary ; The Secretary also declares that the Mellon in his annual report, trans-|increase of $1.000,000,000 in the gold 1 0 a n P holdings in this country since 191 t 1920 has a tendency to expand cred| revision of the revenue laws is pro-iand create an unnatural ease of money {posed nor are additional taxes sug-|for purposes of expansion and credit. H Then, too, he calls attention that the uncertain state in Europe has im- donor. hope of meeting any indicated gov-|paired the corrective forces which ernment deficit through collection of | used to operate in normal times and back taxes and income from other|[has so reduced the buying power of o foreign countries as to destroy or scurces. endanger the foreign markets for The Treasury Secretary informs|many American products. that to attempt alone to stop ‘Enough forces are operatin, he through which there is an|continues, “to make us cautious in e of tax payments to the estimating the prospects for the fu- ernment will not be enough be se | ture and take care we build on a existing rates of surla: put aise basis. Busi this country now. with rising costs and arti- 1 vaiues, would inevitably. sow II" A | “Sound productive” but that the fact|the seeds of reaction and make more n a ge ccount TOCKETT; remains that they are becoming in- |diMeult the re-establishment of nor- o '8 | creasingly ineffective and are yielding [ mal relationships abroad. § Y l P less and less revenue each year. ©eThe ‘Treasury aims, above all, to ay as lour ncome Permits eep its house in order in the bellef Time to Face Facts Squarely. lihat a sound financial structure here 1y Then bluntly he tells Congress the|wlll, in the long run, afford the best 9 820 F st . s 1s £ tendi ded ) DUCING STATIONERSY|timo has come to “face tne. facte| 8%t for extonding necded sasistance 8| sauarely” and to correct the artificlal | o7 Gomeatic businees on constractiv Corner 9th W. Gi ivertisement. gl @%%WWWW| indroduced {dentical bilis further ex- SHOP EARLY perty custodian for heturn of prop CHRISTMAS Join in this Shop Early! Mail Early! movement—everybody That’s the only way to make a success of it. If you’ll just give the matter a moment’s consid- eration you'll realize how much better it will be all around. Shopping will become a pleasure— instead of a hardship—Christmas will be a joy instead of the climax to a terrific struggle. You can buy to so much better advantage NOW —while assortments are complete—and the will- ing clerks have time and opportunity to give you personal attention—which you cannot ask nor expect in the rush of the closing days a little later. Make you selection NOW—and those that are- for the-folks out of town get them posted PROMPTLY. If Everybody will Shop Early and Mail Early—Everybody will have a Merry Christmas These developments are all until Christ- yment of Zasmall de- ance and inadequate equip- A diamond is the best OO —an everlasting remembrance of the Special For This Week A beautiful blue-white sparkling Dia- mond set in the new style green and white gold mounting. Worth fully $37.50. Very special, $2 1 J 85 efinitely without nd undue expan- o YO OO OO YOO KRR Xk 3 A XROK RO YOb o X KK XX SHOP EARLY FOR CHRISTMAS SHOP EARLY FOR CHRISTMAS L2 s 80086088 8.0.8.8.8.0.6.0.8.8. — Jewelers and Optometrists. o e LAmative, BROM “Look for the Big Clock.” ‘The box bears the signature v t BROMO. . rawe (Baice xou e s (LTI LI IIIlllllll_lIllllllllllllll"IllIlllllllllllll“llll""ll = CREDIT—SERVICE—LOW PRICES AT The National Furniture Co. NAGLIS = GUARANTEED QUALI.TY AT The National Furniture Co. | . AIA' small first p'lymem g;veD::;ufi;plg:;“i:: 1 l P l l' tl:is‘:::e,."‘l')he l'v‘:lan:: ware or a 26-piece Set liig “ ‘ op:ldflll: :::::Ilci'e:;,llvz: . A, Sil- - . H % z oy b1l e ottt et ettt monthly instalments. | Offers Hundreds of Money-Saving Xmas Suggestions In Guaranteed Furniture at Low Prices—Credit for All "~ Electric I x| | TOYVILLE! N Mahogany Stick Hundreds of Toys and Silk Shade 2 3 DOLLS Golden Oak See the Bevy of Them in Toyville Ha“ Rack $15.75 $12.75 Easy Terms Full-Jointed THIS ATTRACTIVE WALNUT-FINISH. Doll Bedroom Suite is a wonderful value at this price, $ 7 5 Wit Siccpie consisting of Dresser, Chiffonier, Dressing Table . and Bed, as pictured. . .......c.iiiiiieiieaatnns Easy Payments at “The National” BEAUTIFUL MAHOGANY-FIN- ish Cane-panel Suite, like picture, con- ‘ sisting of 6-foot Settee, Armchair and $1 19.75 Rocker; covered with velour. A re- rkable value ............... 5550 o Easy Credit Terms mob_il_e, $5.75 Golden Oak Kifchen : “l‘;"”;f""‘ Cabinet s o uffet T .15 | $29.75 G s o, Y9E $18.75 Easy Terms Easy Terms .Easy Terms ’ Easy Terms \ CRLDIY (Iron Wheels) Velocipede,2:2 | . \