Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-26
HOOVER CABINET
STUDIES ECONOMY
President Receives Depart
ment Heads Reports on
Thrift Program Surveys.

President Hoover and his cabinet at
their regular biweekly session today
again devoted NEST OF their attention
to economic matters.
Various members Of the cabinet re-
ported additional results of surveys being
conducted IN ther respective depart
ments, following the adoption OF the
Presidents economy program. Members
of the cabinet also discussed business
conditions throughout the country and
we're agreed that reports of conditions
are more favorable.
Il is understood that Secretary Mel
Ions suggestion of a revision OF the
tax system, to provide regular flow
of revenue. which was made in the
National Radio Forum. arranged by
The Star last Saturday night also was
discussed
Hoover Sees Improvement.
1t was said in behalf of the President
after the cabinet meeting that many
factors in the economic situation were
found TO be Of a favorable nature" No
application Of this explanation was
made, however. The cabinet session
was necessarily prolonged longer than
is usual and the President found It
necessary to call CT his usual bi- weekly
conference with newspaper CORE
spondentS.
The taxation speech of Secretary of
the Treasury Mellon Saturday night
in the National Radio Forum arranged
by The Washington Star. continues to
stir interest and evoke comment, espe-
cially from the Senate Republican in
dependents and Democrats.
Senator Borah, Republican, Idaho,
saw In Mr. Melons discussion q move
| toward extending the income tax to
! income brackets now untaxed He de-
clared this to be "on the same prin-
ciple as the lowering OF wages?
Couzens Sees Political Move.
Senator Couzens. Republican, Mich
/ gan. Of the Finance Committee, said
the Mellon speech was IAN obvious at
tempt TO sustain the evident intention
of the administration not to have a
tax raise at the next session"
He called for a balancing Of the
budget and said nothing can stand in
the way Of a tax increase next session
except playing politics with the
Treasury"
Senator Hull, Democrat. Tenn, a
| Treasury TO task for failing to take
steps for revision OF the taxes when
| the business depression FIRST set in
Both Senators Hull and Couzens
predicted the accumulated deficit for
! the Government would reach $1,000
900 900 by the end of another fiscal
year.
Meanwhile, Secretary Mellon an
nounced that tenders for 10000 900 in
Treasury bills would be received b. the
| Treasury next Thureday, bringing to
81 $50 900. 900 the amount of securities
| issued by the Cover nment since
, March IS, The bills viii be sold TO
! the highest bidder and redeemed at
face value in 81 days.
Mr.. Mellcn, IN the speech suggested
| that the tax system should be revised
TO provide a more regular flow of in
/ come. Indications grew today that
! Ire sury oficials were watching closely
the Governments finances and probably
/ would determine late next Fall whether
! to recommend to Congress that the
revision be undertaken at that time.
Borah Scents Wage Cut"
Senator Borsh said in his statement:
| 1T seems TO be understood that the
! Secretary has in mind the broaden. ng
/ OF the bare for the income tax. the
; IOhtIAAlB VI VIC CAFUlptiOllS. ildL sup
! position is based upon the statement in
! his address calling attention to the
| fact that out of 10000 900 people, $780,
| 900 pay 81 per cent Of the total amount
received from individual income taxes.
; In my judgment the lowering OF the
| exemptions and the taxing of the
| smaller incomes is on the same pTin-
ciple as the lowering OF wages. Both
would haze the effect of reducing still
further the purchasing power Of the
| great body OF people.
We are committed to the PROPOSE
ton, and wisely So against lowering the
wage scale We believe that to do so
would still further reduce the purchas-
| ing power Of our people. This would
be equally true in the matter Of lower
ing the exemption and laying a tax
upon small income ."
| The searchlight OF economy has been
turned by Secretary Hyde on Agricul-
ture Department expenditures.
A considerable cut Is In prospect
through termination Of two emergency
Continued on Page 4, Column 81