Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-17
OPINION IS DIVIDED
|. OVER TAX REVISION
Federal Public Works Plan of
Aid for Unemployed Also
Is Wrangled.
by MARK SULLIVAN.

There is literally no means Of making
even q worthwhile SurmiSe as to
whether there will be tax revision In
the coming session OF Congress. Jndg-
ment about the desirability of it cuts
straight across both parties in Con-
gress and divides leading men in both.
The question of tax revision Is aSso-
ciated with and almost dependent on
the other fiscal question of whether
there shall be large Federal appropria-
lions for public works to relieve unem-
ployment. On this question, also, there
Is chaotic division of opinion.
An impressive body of opinion holds
strongly that the one sure way to end
the business depression early is to pour
large amount Of Federal funds into
the channels of trade through public
lars. When the point Is made that the
Federal Government Is already en-
barked upon as much public building
as the Government has any earIS use
for, the reply Is then made that the
Federal Government should loan money
to States and cities for local public
works It Is seriously proposed by quite
responsible persons that street widen
ing, new sewage systems and the like
be financed by loan granted from the
Federal Treasury. This rather startling
suggestion constitutes the latest phase
Of the proposal that the Federal Gov
eminent should accept respone oility
for ending unemployment by means of
great appropriations. -
Sees Two Big Problems.
The whole problem of taxation CEN
tering about the business depression can
best be clarified by dividing the need
for money into two areas. Distress
which takes the form of actual need of
money for food, shelter Or clothing will,
1t Is expected, be cared for by the Presi-
dents Emergency Relief Committee.
The funds for that viii be raised locally
in the communities in which the need
exists by voluntary subscription, or in
some cases by grants from State LegiS-
latures or other official bodies.
The relief of distress in this narrow
sense makes no demand on the Federal
Treasury and raises no question of Fed
eral taxation. A few weeks ago there
was some insistence that the Federal
Government should take responsibility
for this kind of need. The demand was
voiced. among others. by Gov. Pinchot
Of Pennsylvania President Hoover,
however. announced his plan for the
local administration of relief. nearly all
the States and many cities have APP
proved it. and It is now assured that
relief OF distress In this narrow sense
viii not be the problem Of the. Federal
Treasury.
Unemployment Separate.
A different area Of need, however,
Is that Of providing employment for
those out of work. While distress is
associated with unemployment and
while in some communities relief of dis
tress viii take the form of providing
jobs, nevertheless the problem of cur
ing unemployment can best be consid-
cred as a separate subject. This prob
lem has not been ASSOCIATED from the
Federal Government. On the contrary
there Is q considerable tendency to put
this task on Washington.
Relief Of unemployment on a whole
sale scale Is associated by those who
advocate 1t with the fundamental prob
lem Of starting the spiral Of prosperity
as a whole to moving upward again.
It is earnestly argued that If the Fed
eral Government will by large appro-
priations provide work for unemployed,
the money thus put in circulation will
now into banks and stores and inaugu-
rate prosperity. incidentally, the same