Business: Tax-Exempt Bonds

With further surtax and income-tax reductions apparently slated for adoption during the next Congress, the old subject of tax-free securities may lose its former significance. The National Industrial Conference Board has estimated that on July 1 last about $14,000,000,000 of such tax-free bonds were outstanding in the hands of investors— 13.6% more than on Dec. 31, 1923, and 242% more than on Dec. 31, 1912. The July 1, 1925, figure included about $2,750,000,000 of Liberty Bonds.

Even under the reduced income and surtax rates of 1924, a taxable bond would have to yield 8.33%...

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