The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1921-08-11
IN NATIONS CAPITAL
KELLOGG Wins Victory When Senate
Passes Farm Relief Bill Similar
to His Substitute.
Question of Reducing Taxes Causes
the Republican Leaders OF the
House Much Concern.

sembling his substitute for the Norris
bill. The bill that was sent to the
house, after three weeks Of scrapplng
in the senate, is known as the McNary
subcommittee bill, but before the SEN
ate finally approved the measure
amendments were added that made it
look very much like the Kellogg sub
stitute. The McNary bill was drafted
with the Kellogg measure as the pat
tern, by the committee on agricul-
ture after all other members, except
Ladd of North Dakota, had deserted
Chairman Norris in his radical stand.
Under the bill as passed farmers will
be enabled to get relief as soon as the
measure becomes law, as the Norris
bill provided for new machinery that
would have required months to build.
Republican leadership of the house
has been forced into corner on the
question of reducing taxes. 1t wants
help to get out. The administration,
through Secretary of the Treasury
Mellon, says more revenue than the
present laws will yield must be pro-
vided to take care of the actual needs
of the executive departments. 1t has
suggested ways of raising this money.
The folks back home" are letting
congress know in very certain terms
that there will be house of different
political complexion here two years
hence if there is not some substantial
relief from the present burdensome
taxes. These letters are paying es-
pecial respects to Secretary Melons
proposal for a 2-cent tax on bank
checks, Scent postage, $40 tax on au-
tomobiles, and Is per cent corpora
ton tax, without the $4,000 exemption,
as a substitute for the excess profits
tax.
A cut of more than $250,000,000 in
the ordinary expenditures of the gov
eminent this fiscal year is necessary
if additional taxes are to be avoided,
the house ways and means committee
was informed by Secretary Mellon.
On present estimates, he said, the to-
tai government, cost this year will
be $4,550,000,0 900, of which $3,830,000,-
900 must come from taxation. Even
with the suggested reductions, Mr..
Mellon said, the internal revenue yield
for the year "could not safely be per-
mitted to fall below $3.50 100000, the
estimated yield under existing law"
The treasury secretary told the COM
mittee that actual Expenditures for the
full month of this fiscal year indicate
that unless there was can extraordin-
airy new effort to reduce expenditures
the estimate which the treasury had
presented might be regarded as con-
sentative Ordinary expenditures fol-
July, he said amounted to about $685.
100000 as against 1907, 100000 fol
July, 1920, while the current deficit
last month was $113, 100000 as agains
$76,000,000 in the same month a veal
ago.
Congressman Stevenson and Lar
son appeared before the Indian affair
committee of the house urging tina
the Stevenson bill, providing for tn
payment of 500 per capita to tn
Chippewa Indians Of Minnesota,
reported forthwith. This money is t
be paid out of the fund belonging t
the Indians amounting to some Sc
100000. The congressman stated tina
the bill is an emergency measure, tina
the economic situation of the Indian
'of Minnesota is deplorable and that ur
less immediate relief is afforded thel
many will suffer from want and pei
haps some may even starve. The COZ
gressmen were informed that the bi
will be Immediately reported on
There are about IL, 900 Indians in Nil
nesota residing in the districts rel
resented by STEVENSON and Larson.
Governor w. P. G. Harding of tt
federal reserve board took the star
before the joint congressional agricu
tural committee to reply to charg
that the fiscal system had "discrir
mated against the farmers in fav
of Wall street speculators' made
John Shelton Williams, former co
troller of the currency. "Congress d
not seek to establish a central ba
when it created the federal reser
SYSTEM" said Harding, but added tn
the board could "mobilize credits" a
force reserve banks to extend cred
to other banks in the system.
A sweeping investigation of the /
reau Of internal revenue has been
dered by Commissioner David H. Bl
as result of serious and even 81
sational charges against the cond1
of affairs in the income tax, prohi
ton enforcement and other sections
the bureau.
The senate passed on Monday by
vote Of 80 to 20, the Willis-Campt
antibeer bill and it was sent to c.
ference with the house with prosp
of it's final enactment before the {
of the week. The law against the p
scribing of beer by physicians 9
limitations of prescriptions of w
and whiskey contained in the no,