Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-30
The Political Mill
By G.. Gould Lincoln.

line up for an increase in Federal taxes
in the coming session OF Congress,
despite the fact that q deficit estimated
as high as $500 900 900 faces the
Treasury. Senator Pat Harrison of
Mississippi, who Is the ranking member
of the Senate Finance Committee, in
a statement made public through the
Democratic National Committees Pub
licity Bureau, fiatly turns his back on
tax increase at this time and gives
his reasons clearly. Senator Harrison
is regarded as the leader of Democratic
thought on taxation and tariff in view
not only OF his close study Of these
matters and long service in House and
Senate, but also because of his present
position in the Senate Committee which
deals with those matters. He succeeded
to this position when former Senator
Simmons of North Carolina failed to be
reelected last year and went out of
the Senate on March 4.
Senator Harrison insists that talk
about an increase in taxes at this time
cannot possibly help business to get
back into its stride, but may deter a
return of business activity. 1t is the
contention OF the Mississippi Senator
that the policy followed by the Govern
on the national debt much larger sums
each year than was the adopted policy
at the close of the World War has been
a mistake, contributing in part to the
present situation, because 1t has taken
from the American people in surplus
taxation some So, SOC, 900 900. The debt
which totaled at one time $4,000, 900.
900, Senator Harrison said had been
reduced by more than SIC, DOC, 000, 900 in
a decade. He urged that a halt should
be called on the retirement Of this
debt temporarily. In this way, he
argued, IL would be possible for the
Government to catch up with the expend-
itureS again and to balance its books.
while at the same time it would still
be possible to complete the retirement
of the debt by 1852, or before. That
was the date, he said, which originally
had been fixed for the final retirement
Of the debt anyway.
~ Is
The attitude OF Senator Harrison,
which undoubtedly reflects the attitude
of the great majority of the Democrats,
taken in connection with the attitude
of Senator Smoot of Utah, Republican
chairman of the Senate Finance Com
mittee; Senator David A. Reed OF Penn
sylvania, an influential member Of the
committee, and the administration
itself, practically makes it certain that
there will be no increase in taxes put
through Congress at the next session.
The Progressives on both sides Of the
House and Senate chambers may make
all the demands they desire. they are
not likely to shake the Republican and
Democratic leaders from their deter
mination not TO increase taxes at this
time. Indeed, neither of the major
political parties is inclined to place
itself in a position of demanding in
creased taxes on the eve of national
campaign.
Republican leaders may be expected
to call upon the country soon to take
stock; to determine for itself whether
it has been actually as sick as the
Democrats have pictured. They will
doubtless call attention to the fact that
notwithstanding the grave depression
stock crash in 1929. the country has
been very free from strikes. lockouts
riots, and that American citizens and
their children have not been permitted
to starve. Such conditions, they will
point out. are vastly different from the
conditions which prevailed here in
America in the depression of 1878 At
this time there were riots, there were
strikes and lockoutS, with drastic cuts
in wages, and great deal of suffering.
and practically half of the working
population out of Jobs. How much bet
ter the country, they will say, has been
able to meet the depression, due not
to the United States. but to world con-
ditionS following the World War! The
depression of 1873 followed the Civil
War, a period of great activity, and
was the inevitable readjustment due
to economic causes. The depression of
1929. which has not yet been dissi-
pated. 1T is contended, Is the result of
economic forces outside of the control
of the Government Of the United
States.
The Republican leaders probably will
be somewhat chary about making pre-
dictionS for the future regarding busi-
ness. Some of them think they were
premature in early predictions that the
depression was soon to pass, and they
were premature as the results have
demonstrated. However, they will urge
the American people to hold on and to
get busy as rapidly as possible. No one
realizes to a greater extent than the
Republicans themselves that there must
be revival Of business, that employ
IlUSL IL CIl6 ". r. Is 10
retain the favor of the voters next year
Every effort will be made to convince
the voters that the Republican admins
tration has acted wisely under the cir
cumStanceS. and has been a real aid to
the industrial worker and to the farmer,
taking a lead in opposition to reductions
OF wages and in the effort to maintain
prices of farm crops.
The Republican speakers will call
upon the Democrats repeatedly to tell
the country just what they propose to
do. II they are put in power, to restore
business conditions. They will assail
the Democrats for seeking to foist upon
the country Federal dole" and will
ask If they propose to put such a dole
into effect If they are elected next year.
And they will ask the Democrats Just
what they propose to do through legis-
lation to revive business. The Re-
publican contention. generally speaking.
will be that it would be folly to lower
tariffs to permit the importations of
vast quantities Of foreign-made goods
which might result in the closing down
Of American factories.
President Hoover not long ago called
upon the American people to aid in
keeping down governmental expendi-
lures ny hlSISCInS IIldJ OoHSEcSo Keep
within the budget submitted to it by
the administration. Senator William
E. Borah of Idaho, Republican Progress
sive, now has appealed to the American
people to use its influence to keep down
expenditures by insisting that the
bureaucratic tendency, which Swells APP
preparations for the executive depart
mentS. be halted. The Idaho Senator
sharply resents the criticism of Con-
gress, implied or otherwise, coming from
administration sources, and contends
that Congress has as matter of fact
pared down many of the items in the
budget after 1t has been received on
Capitol Hill. The Government depart
ments, Senator Borah insists, are con-
stantly seeking to increase their APP