Document e7ykM3bDGMw2J1R1w6V4ybLvG

3. They also will switch some of their present sav ings from bonds and bank accounts to common stocks. This might easily add a billion dollars or more to the supply of risk capital. The one-half billion dollars of tax savings and tho funds switched from other investments Into com mon stocks is not enough to end the shortage of risk capital. But it is a start. Before passage of the tax law, risk capital had been growing increasingly scarce. One measure of tho scarcity is that last year only four-tenths of 1% of national income went into new common stocks. In 1925, a year of normal prosperity, almost 3% of national income was invested in new common stocks. Another measure is that between 1940 and 1947 people actually reduced their holdings of corporate stocks and bonds by nearly a billion dollars. During the same period, people salted away almost $150 billion in such safe havens as cash, bank deposits, and government bonds. This drought of risk capital hit u? just when we need a vastly Increased flow of risk capital to finance the expansion and Improvement of our American productive machine. We need risk capital to scorch for new oil fields and to build new pipelines and re fineries. We need capital to expand our over-loaded electric and gas utilities. Wc need it to finish re equipping our airlines and railroads and bus lines. We need it to modernize our textile production. We need It to keep pace In the magical, booming chemi cal industries. We need It to launch the new indus try of television. We need capital for all this work and for much more besides. And we must do all this work if toe are to keep (he United States dynamic and if toe are to create new and better jobs. The tax cut comes just In time. As the last edi torial In this series showed, the flow of risk capital must double or triple if we are to avoid a cutback in Industrial expansion next year. A major reduc tion in industrial expansion because of a shortage of risk capital would menace our prosperity. When ever capital expansion has sagged, the whole econ omy has sagged. That Is the record. That is why every American has a crucial interest In breaking the shortage of risk capital other tax changes to assure enough risk healthy industry and healthy employment We should encourage the rapid depreciation replacement of plants and equipment to America efficient Wo should eliminate the doublo taxation 0f holders' incomes. Wc should permit full averaging of good and bad in calculating income tax payments. We should cut tax rates again as soon as we The tax cut of 194ft will prime the flow of c&pli We must keep it flowing. The tax cut also encourages our successful .... and women to work harder and more effectively. The McGraw-Hill editors collected some si facts to show how seriously heavy taxes have couraged business leaders. Here they are: 1. Ono out of seven persons the editors quest! said that they had turned down positions greater responsibilities because heavy would take most of the greater pay that with the harder job. 2. Six out of ten executives would be more incli to accept a more responsible lob now that will let them keep more of the added pay a job would bring. We ell have a stake in incentives whichmake work harder, especially talented men. The more each work, the more we all have. The tax reductions so far made will leave Art] government more than enough revenue to meet aD its .expenses, including the proposed defense ex-, penses, and still reduce the national debt. U morij defense money becomes necessary, vigorous econ-i omy on less essential government expenses will mate possible both stronger military defenses and a better,] tax system. We need both. ) Only o prosperous America can be strong enough to remain freehand to help keep the rest of d* world free. 1 1y .k/feiVs ~7 -- g1'' \u\'l _____ Lfit |l ?! A. k-j SI ^ 1y \n 0Z- 1y J___& y t; 7S00-KW UNIT, hot tvrbin., I!i, fitted with ~ * 163 164 etMM,F grwoovernstoeromvolvcehse;stso,pceroiglehst MOkUCR CHART shows only about 64.9 between 375 end J75 pslg 0tu per lb of steom convertible to work District Steam Supply Makes Byproduct Energy Steam demonds on the New York $1eem Corpora tion system make it possible to generate additional electricity economically. Here's how it's done with backpressure turbine at East River Station of Consolidated Edison Company of New York, Inc By M J STEINBERO, DMtlcn fnglnoer. System Snghoorlng Deportment CootoHdettd tdltcn Co el Now York HEW YORK STtAM COBP System is divided Into up- . town ond downtown dis tricts. East River Stotlon. formerly tied to southern end of uptown oreo by Mth St moln onty, will hove added tie through lit Av moin, (dotted). Shoded oreo Is Stuyvesont Town ond Peter Cooper housing developments (near East River Stotlon) which district stoom will ty* Sruoies maos ctt 1934 indicated ap preciable fuel economics could bo real ized by combining electrics) power generation end steam supply for dU* lrJet heating. This was one of several..(actors that Influenced iustailatJoa et the Waterside Station of "topplasf units that will provide topping capacity of 336,000 kw upon completion of the modernization program. This installation provides a flexible system for utilizing topping-turbine ex haust steam either in low-pressure con- |N7) .