Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-02-06
.WM Be Called Upon to Settle
Controversy Immediately
on Inauguration.
DIVISION OF SENTIMENT
DEVELOPS IN COMMITTEE
Farm and Manufacturing Interests
Clash in Insistence on Relief
Measures.
BY n. O. MESSENGER.

BY n. O. MESSENGER.
President Harding, first off the reel
upon taking office. will be called upon
to settle a controversy now agitating
leaders in Congress who are to hold
over in the new Congress as to
whether revision of taxation or re-
vision Of the tariff shall be taken
up first in the extra session. There
is sharp division Of sentiment in the
ways and means committee upon the
subject, which is reelected in the
House membership and attracts at
stention of senator's.
While it is recognized to be a ques-
ton of legislation primarily and es-
sentially. and therefore should theo-
retically be determined by the House.
the constitutional source Of tax and
revenue legislation. the fact also is
manifest that it involves administra-
ton policy and party politics. con-
sequently coming within the purview
Of executive Judgment. At any rate,
there is such a mix-up among repub-
licans in Congress that it will have
to be left to President Harding to
decide. 1t is thought.
Press for Taxation.
One element in the ways and means
committee. representing a faction in
the House. is in favor Of taking up
taxation first. supporting the demand
by this contention:
49, yhox ui1 hsso ~ ftA
country, industry and finances are
the burdens Of the inequitably placed
war taxes. 1t is claimed that this
situation Is conceded on all sides to
exist, has been pointed out by q demo-
cratic Secretary OF the Treasury, ad-
mitted in the late campaign with
promises Of remedy and repeekediy
Congress. ~rs-.~ ~
1t Is ch4:Ysd that the shut
Of Industries b<kfnuing In December
was due in the case u number Of
the more important industries to the
inability Of great concerns to pay
their last inssaiiment Of income taxes
and at the same time finance heavy.
operations for the future in their
business.
Relief Assuranee Needea.
It II claimed that immediate as
surance OF subsequent relief from
these burdensone and admittedly un-
equally levied taxes would do more:
to revive industry than anything else.
It IL not contended that they can be
lifted instantly. nor even In the i'm
mediate future, although they can
now be more justly placed and
divided. but It 10 insisted that If bust
ness can know to q certainty what
IL must face In the future. even
though months Of. It can adjust itself
to the hereafter.
The advocates OF tariff revision are
Just as earnest in their tnsistencs
upon early action upon customs
schedules. They point to the condi-
ton OF the farmers. recognized. they
say, in the prompt action Of the House
and Senate at this session in the pro-
posed extension Of relief through the
emergency tariff. II this temporary
measure fails. as now seems likely,
they protest that there will be the
more reason for proceeding with the
general tariff revision in April
Republieans Are ConeerneA.
Republicans from the farming sec
tions are seriously concerned over
justification Of their contentious They
say that II the republican Congress
fails to act now and the republican
administration. being in full control,
postpones relief measures they will
be placed in an embarrassing posi-
ton
Thereupon the advocates Of taxa
tion relief first come back with this
70 frame . tariff during the next few
months and until world and domestic
conditions arc adjusted. It is claimed
that NO sensible tariff can be arranged
until cost Of production IL established.
That 10 the basis. or should be, Of q
tariff conforming to the protectionist
idea: that is to ny, to protect the
American worlingman against cheap
European labor.
Ak InlS Cn10s - 10 Weu kuOWu, All
normal standards. Of wages abroad
are nonresident. Moreover. the Diff
fersnoe In exchange enters into the
equation. Further. It il pointed out,
wages have not settled down to nor
NAL basis in this country. such q con-
dition preventing fair comparison
between American and foreign wages.
TtansDsrtatioa Rates Unsteaay.
Transportation rates, too. are sub
3ecE to possible change here.
II Is known that the hearings on the
prospective tariff bill have not been
satisfactory In that members Of the
.,~ss snd means COMMITTEES have not
been able to secure DEFINITE sugges-
lions from manufacturers, due to
the uncertain conditions enumerated.
But the entire Congress and the new
administration will be told that "busi-
nes6' in the United States does know
exactly wherein, how and to what
degree, in dollars and cents, tho tax
law hits, and that business will in
sist upon having Its case acted upon
while ths world waits for the adj
agsted sSsst5sooa1fectiae tho taxa6s