Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-27
SENATORS OPPOSE
| MELLON TAX PLAN.
10
couzens and Borah Take
.:Raps at Suggestions to End
~
!; All Exemptions.
BY JOHN F. SINCLAIR.

moderate incomes will pay something
This maneuver has drawn protests
from certain members of the Senate.
Senator Couzens Of Michigan, the
richest man in the Senate, says: 1.-THE
whole statement of the Secretary is an
obvious attempt to sustain the intention
Of the administration not to raise taxes
until the next session of Congress.
However, the speech is an argument for
q tax increased"
= The Senator demands that gift and
Inheritance taxes be levied to meet the
Governments needs.
Senator Borah, the fighting 1dahoan,
makes a sharp thrust with these words:
1.-The lowering of exemptions to tax
smaller incomes is the same principle
as lowering wages" and then points out
that this Is contrary to the expressed
stand of the administration on wage
cuts.
" Much will be made of Secretary Mel
Ions statement that out of 120000,O 900
people in the United States only about
$4,000 pay 81 per cent of the income
taxes. His opponents are certain to
people about So per cent receive less
than 10 per cent of the national in
come. They will further demand that
II he wants to broaden the tax base he
will have to do it by heavier taxes on
the per cent who receive 80 per cent
Of the national income.
Following closely on the heels OF
the Australian financial crisis another
loud and ominous creak in the British
Empires economic structure echoed
through the money marts yesterday.
This time it is Newfoundland. which
is on the verge of defaulting on bond
obligations.
The only salvation appears to be
financial first aid from Great Britain
at once. Since Monday the officials
of this smallest Of the British do
iflinions have been feveriShly rushing
from one conference to another and
keeping the cables to London hot with
pleas for assistance.
A loan for $4,000, 900 at S per cent,
tintaxable, closing date for tenders
May %, found not single bidder.
In response to frantic calls from the
minister of finance bankers in London.
Montreal and New York replied that
not a penny In offers had been re-
ceived by them.
The government account with the
Bank of Montreal had been overdrawn
for about $1,25o000 and no govern
ment checks are being accepted: Sir
Richard Squires, premier, Immediately
stopped all issue of government checks.
Newfoundland is faced with tre-
mendous relative deficit. Her estimated
revenue is about $11 .000,0 900 and the
deficit is 100000. The economic and
public works projects have been pushed
somewhat in the same nasty fashion
as in Australia.
The depression has sand-bagged
Newfoundland's fiscal policy with de-
Ginning revenues. With a population
of 265, 900, her national debt stands at
$50 1915, 600. or about $345 per capita!
Unless money is supplied from some
where very quickly she will certainly
default on interest payments que
June 80.
some say she will sell Labrador to
get cash. But right now that sounds
fantastic.
For the first time in many weeks, the
bulls fought back yesterday with de,
termination and spirit, although United
States Steel was just able to hold its
own. At closing 1t rose to slightly above
opening prices after sinking almost
points. Other market leaders, however,
added on an average OF points In the
general counter-attack.
The whole movement had all the ear
marks of an organized drive against
the domination OF the bears. Many In
Wall Street seem to feel that the dis
tribution of QUESTIONABLE to Stock
Exchange members in an attempt TO
ferret out the short sellers had the
effect Of restraining the bears. But it
really had little effect.
Yesterday, at least, the bombardment
of blue chip stocks was halted abruptly.
In the lull, these stocks advanced, some
as much as four points. Trading was
fairly small and narrow, but almost
every one felt better at seeing the mar
ket take on a rather bullish character.
The question is asked: Will it hold?
Nobody knows. Wall Street has been
Jared too often of late with the re-
peated landslides of stock prices. after
brief technical rallies. The traders know
there is still plenty Of room under the
bottom of the present market, unless
there Is some permanent improvement
in business outside the Stock Exchange.
In Plainsboro, Pa, is a central
ONCE where Henry w. letters. an
efhcient-looki young chap, directs the
operations Of a 3,000-acre agricultural
plant" With its charts. reports and
generally business-like atmosphere. one
might easily imagine it to be an indus
trial rather than a farming organiza-
ton.
The policy Of uniting science, business
end sound labor relations followed by
Mr.. Jefiers has yielded flne crop Of
profits. Nothing is done here by hand
that can be done as well or better by
machines. One Of the outstanding fea-
lures is a dehydrator. 1t looks like
huge tube. The damp, green alfalfa,
or corn. goes in enc end. Is roasted, and
comes out at the other as dry, chopped
hay.
Every possible service is supplied by
q staff of experts. Soil fertility, agri-
cultural economics, nutrition, genetics,
bacteriology. medical and veterinary
control are all checked by members OF
this staff. II is very likely that the in
dustrialized farm being perfected by
young Mr.. Jeffers points the way TO
corporate farming"
Our silage corn costs only about
half what it did under the old system"
Mr.. LETTERS told o. NJ. KiIe, for the Ma
produced for considerably less than We
can buy good Western hay"
z. H. Zimmerman. Missouri banker,
who was asked a year ago by the Mis-
souri, Bankers Association to head
committee to study the sterilization OF
the money standard, made his report
on May Is. 1t is one of the most COM
plete reports ever made on the subject
What the committee attempted was
to study how greater stability In the
purchasing power Of the worlds money
units could be brought about. The re-
port intimates that 1t may be necessary
TO create new institutions competent
10 deal constructively with all the fac
tors involved and with all Of the agen-
cies which tend to influence them"
After saying a good word for the
work being carried on by the Stable
Sir Charles Adds. leading English
banker, who said recently: World sta
bilization of commodity prices, through
sterilization OF the money markets of
the world, is one OF the essentials