The New York herald., 1922-12-20
Resolution to Bar Them by
Constitutional Amendment
Debated.
BOTH SIDES SEE VICTORY
Mills Says Present Situation
Is Producing Larger Idle
Rich Glass.

WASHINGTON, Dec. 19.--Aftcr E. sharp
preliminary skirmish the House took
up today a resolution proposing an
amendment to the Constitution under
which issuance Of tax exempt securi-
ties by the Federal Government and
the States would be prohibited
Backed by tho Endorsement Of Presi-
dent Harding and the Treasury the
proposal was the center of a hard
fight. in which many Republicans op-
posed 1t.
Passage OF the measure, offered by
Representative Green Uowa). ranking
Republican OF the Ways and Means
Committee. which reported II. will re-
quire two-thirds vote OF the House.
Opponents said tonight 1t would be de-
tcated. although leaders who caused 1t
to be brought up insisted II would go
through. Four hours OF general de-
bate. allotted under special rule giving
the measure right OF way. had not been
concluded or adjournment tonight.
Speakers in opposition.
Republicans speaking against the
resolution were Representatives. Gra-
ham tPa-). ranking Republican OF the
Judiciary Committee; Bacharach IN.
J). member Of the Ways and Means
Committee; Gr9go (Pa.), Cable (Ohio)
and Norton (Ohio). Representative
Crisp (Ga.). Democratic member OF the
WY -
II. and the speeches otherwise were
along party lines
Chairman Fordney OF the Ways and
Means Committee. Mr.. Green and Repre-
sentative Mills (Rep.. ~. W also OF the
committee, urged passage OF the meas
ure. while Representative Garner (Tex.).
ranking Democrat OF the Ways and
Means Committee. directed the fight
against passage and made the principal
speech.
with less than 100 members In the
Chamber Mr.. Garner carried the fght
into enemy" ground by dealing out
speus,ing time to Republicans on his side
OF the contest.
Throughout the debate the question
continually bobbed UP that the proposal
would invade the rights of the State to
control their own credits
Calls Proposal Pernfcfous.
Already irTeverent hands have been
laid upon that sacred document. the
Constitution OF the United States" said
Mr.. Graham. ''and know Of no more
pernlcious proposal than this. 1t Is an
effort TO rob the State OF one element
OF it's sovereignty"
Mr.. Crisp said he was convinced that
II stop was no; put on tax exempt
securities the income tax law would be
nullihed.
Mr.. Bacharach. in opposing the resolu-
ton, said conferences with New Jersey
state officials had made him certain that
the effect would be bad. no; only for his
State but for the nation at large.
Issuance OF tax exempt securities IL
,nsound. whether we look at II from
the flscal. economic or social stand
point" ssid Representative Mills. From
the economic standpoint, he added.
they were ''indefensible."
Gould there be anything more un-
fortunate, from social standpoint than
this present situation" Mr.. Mills saios
Say what you WIFI about large Ameri-
can fortunes they we're accumulated by
r1en of ability. energy and vision dur
inn the course of an csceedinsiy busy
llfe'
Mr.. Mills said the funds OK such men
which formerly had been reinvested In
productive enterprises Eve are nov dry
ing up
we are driving such men from ac-
five business" he said, "Rnd we are
creating a class OF Idle rich"