Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-22
Watson and Borah Expect
Other Means of Covering
$780, 900, 600 Shortage.
EXTRA SESSION MOVE
ALSO BELIEVED DOOMED
s'PeOple's Lobby" to Hold Confer.
ence Here Tomorrow to Urge
Call to Congress.
By G. GOULD LINCOLN.

Unemployment conditions and the
prospective Treasury deficit, which may
run to 100000, are causing de-
mands for special session of Con-
gress.
However, despite the falling OF In
the Government tax receipts, as shown
by Treasury statements regarding tn:
income tax returns and tariff duties
Senator James E. Watson Of Indiana
Republican leader and q member of the
Senate Finance Committee, said yester'
day that he did not believe there would
be legislation increasing Federal taxes
ct the next session Of Congress.
In this view Of the probable legisla-
tive situation Senator William E
Borah Of Idaho, who has allied himself
with the Progressive bloc, concurred.
Election Coming On.
While Senator Watson, however. took
. hopeful view of the situation, declar-
ing that the psychology" Of business
was improving in this country, with 9
prospect of better times, greater en-
ployment and increased industrial &C.
tivity, the Idaho Senator was more
cynical. In his opinion there would bt
no tax increase with q national cleo
ton coming on.
Senator tom" Connally Of Texas, &
Democratic member Of the Senatt
Finance Committee, said he doubted
that any serious effort would be made
10 increase taxes at the next session Of
Congress. Rather, he said. there nigh
be legislation seeking to make it posi-
BILE for the Government to make use O
the sinking fund for the retirement o.
the public debt, since the retirement o
the public debt growing out Of thu
World War has been much more raplC
than was originally contemplated.
While any proposal to increase taxes
under the Constitution, must originate
in the House and not in the Senate, tn
opinions expressed by the Senator's ar
taken to indicate the sentiment which
viii be found in Congress against ar
increase In taxation when It meets u
December. The general impression pre-
walls that every effort will be made x
deal with the deficit, IL only tempo
rarily. until conditions In this country
improve and the tax receipts at the SAM
time increase.
May Ask Surtax Raise.
II there Is a demand for tax increases
Il probably viii come from the Progress
sive groups in the Senate, some Of whom
contend now that rates on the larger in
comes, the surtaxes, should be ma
terially increased. The argument o
these Progressiyes is that. under tn
circumstances, the income. taxes leyie'
on big incomes in the country are en-
ttrely inadequate.
The argument Is advanced, however
that the Government II 1t become
necessary can float additional bond is
sues, which would be speedily subscribe'
to from funds that are now waiting op
portunity for investment. In this wa
. deficit, Il Is declared. could easily b
met. and tax increase legislation avoided
Although Secretary Lament OF tn
Department Of Commerce, in MAXIM
public the reports from the Censu
Bureau, showed that employment b
many industrial establishments had in
creased since January, his estimate tina
in the first month Of this year the un
employed had reached total Q
$3.50 900, with another zoo, 900 to 300, 90
temporarily laid Of their jobs wa
hailed by members Of the Progressiv
group in the Senate as an indication
that conditions had been much wors
than the administration was willing :
admit during the last session OF Congress
Wheeler Is Critical.
Senator Wheeler OF Montana. Demo
crat and one Of the sponsors Of tn
recent Progressive Conference held here
insisted that II official figures such a
those now produced by Secretary La
mont had been available before Cong
YeSS adjourned, there would have beel
no adjournment without some furthe
measure of relief being taken by tn
National Legislature. He was one o
those who insisted that an appropria
ton should be made by the Federal Gov
eminent to feed and clothe those Il
distress throughout the country.
Senator Borah, who also demanded
Federal appropriation TO help feed tn
unemployed and those in distress in tn
drought area, said yesterday that tn
figures now given out by the Secretar
Of Commerce corroborated the state
ments made during the Senate debat
by Senators who supported the Fedora
contribution, which was opposed strong
ly by the administration.
The Idaho Senator has insisted RICH
along that Congress should be in session
this Spring in order to meet the need
of the country. He said, however, tina
he did not believe that special session
Of the Congress would be called, unles,
indeed. conditions became so alarmin
as to force such q call.
Republican Leader Watson does no
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