The daily banner. (Cambridge, Md.) 1897-2008, 1922-12-20
HOUSE is DIVIDED
0NTAXEXEMPT
Predict Defeat Of Amendment
Prohibiting Such Securities.
REPUBLICANS OPPOSE IT
Call Measure Backed by Harding ana
| Treasury Invasion of State Rights.
Graham Denounces Plan.

Washington, Dec. 20.-After sharp
preliminary skirinish the house TOOK
up a resolution proposing an amend
iment to the constitution under Which
issuance OF tax exempt securities py
the federal government and the states
would be prohibited.
I Backed by the Endorsement of Presi-
dent Harding and the treasury, the
proposal was the centre of q hard
fight, in which many Republicans, op-
posed it. Passage of the measure, Of
fered by Representative Green, Iowa,
ranking Republican of the ways and
means committee, which reported Ii,
will require a two-thirds vote OF the
house Opponents Gained 1t would
he defeated, although leaders who
caused It to be brought up, insisted
it would go through.
Republicans speaking against the
resolution were Representative Gra-
ham, Pennsylvania, ranking Republi-
can of the Judiciary committee; Bach
jarach, New Jersey, member OF the
ways and means committee; Crago.
Pennsylvania; Cable, Ohio, and Nor
ton, Ohio.
Representative Crisp, Georgia, Dem
ocratic member of the ways and
means committee, spoke for it, and the
speeches otherwise were along party
lines.
Chairman Fordney, Of the ways and
means committee; Green and Repre-
sentative Mills, Republican, New
York, also of the committee, urged
passage Of the measure. Representa-
tive Garner, Texas, ranking Democrat
kof the ways and means committee, d.
trected the fight against passage and
made the principal speech.
With less than 100 members in the
ichamber, Garner carried the fight into
t''enemy" ground by dealing out speak
ing time to Republicans on his side
] OF the contest. Throughout the de-
bate the question continually bobbed
up that the proposal would invade the
rights Of the state to control their
own credit.
! ALREADY irreverant hands have been
laid upon that sacred document, the
constitution Of the United States" said
Graham, "and I know Of no more
pernicious proposal than this. It Is
an effort to rob the state Of one ele-
ment of its sovereignty"
:, Graham denied the statements made
by Republican speakers that tax-ex-
empt securities offered an avenue
through the rich could escape taxation,
declaring thousands of bonds issued
by municipalities which would be
prohibited-were held by poor people,
who took that refuge Of safety, con-
tent to accept lesser income"
Crisp said he was convinced that If
ia stop was not put on tax exempt
securities the income tax law would be
Inullified. Vast fortunes were being
!diverted from the channels Of trade
land Industry, he said, putting a pre-
lImfum on idleness which would tend
to breed anarchy and discomfort. In
addition, he asserted, the result was
different for the farmer and the home
builder In borrowing money, and an
increase In the cost Of living.
In presenting rule giving the meas
lure right Of way, Acting Chairman
smell, of the rules committee, declar-
led tax-exempt securities now amount
led to 100000, and that there
Twas no way, short Of constitutional
amendment, that could keep wealth
from hiding from taxation.