New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1918-11-29
FAVORS REDUCTION
OF POSTAGE RATES
Finance Committee Recommends
Return to Two Cent System
GOVT. FINANCES MIXED UP
Because Congress May Not Be Able
to Rush Through New Revenue
Bill Old One May BE Used
Again.


Bill Old Ono May BE Used
Again.
Washington, Nov. 29.-Repeal Of
the increased postage rates was ap-
proved today by the senate finance
committee. Amendments to the war
revenue bill were adopted to abolish
the zone Increase on second class
rates, with a provision that the rate
shall be one and one half cents per
pou3d beyond a 200-mile radius, and
also for repeal of the extra cent per
ounce postage on letters.
+ The committee also ordered into the
bill the so-calIed child labor amend
ment. 1t was offered by Senator
Lodge and provides for d o per cent.
tax on products of child labor.
The change il second class post
age, under the committees amend
ment would become effective upon en-
actment of the bill, While that reduc-
ing first class postage rates would be
effective July / next
Finances Are Mixed Up.
Chaotic conditions in the collection
of taxes next year now seems unavoid-
able, according to a treasury state
menting on the delay of congress in
enacting the pending revenue bill.
This statement, to be made public
shortly, will explain why the internal
revenue bureau now is proceeding
with plans to collect taxes under the
old law, with it's levies far below
those proposed in the new measure.
Can Hardly Rush New Bill Through
The only way to avoid resorting to
collections under the old law, the
| treasury now believes, is for congress
| to rush the bill to completion within
| two weeks. Most house and senate
| leaders do not believe this possible
| In fact leaders of both parties are
| said to share the opinion at the treas
| ury that the measure even may not
be enacted at this session. Conse-
| quently, the situation appears to be
| that all the work of congress on re-
| enue legislation during the past six
| months may go for naught, and that
| the present revenue law will be en-
! forced for another year with posi-
| bly, a few additional levies
S2,0OO,OOO Deficiency Noted.
In view of this, congressional lead
| ers have discussed with treasury Of
rush through both houses a joint res
| olution imposing war profits taxes
| according to the plan form ulated in
| the pending bill, and adding this to
| the old law to make up the part of
| the deficit between the four billions,
which the existing law probably would
I raise and the six billions which the
| treasury believes should be raised by
| taxation of 1919. An unpust feature
! Of this program, congressional leaders
! think, would be that the existing pro-
| visions for excess profits taxes have
work recognized hardships on many
businesses and the imposition of add
ed war profits would aggravate the
| situation.
May Issue Short Term Notes.
The possibility of having no new
| comprehensive program of revenue
/ legislation, and consequently Of rails
ing less than the six billions SOugh1
from this source before the end of the
fiscal year, June 80, next, has prong pit.
ed the treasury to consider plans fol
issuing a quantity Of short tern
notes-maturing in one year or less
and paying these off from the pro
| ceeds of heavier taxes which would
be necessary in 1920. This course
would depend largely, however OF
the attitude of the next congress OF
! revenue legislation.
The bill as framed by the finance
committee will be reported to tht
| senate next week by the finance com