Evening star., 1931-12-06
M|LLSAND HAWLEY
TALK PROGRAM
UnderseCretary Discusses
Administration Plan With
Representative.

The administrations tax program
was discussed at length at the Treas
uTy Department yesterday by Under
secretary Mills and Representative VIII
lis c. HaWley of oregon, who will be
ranking minority member of the Ways
and Means Committee in the incoming
Congress.
Following this conference Represent
atlve HaWley predicted legislation ap-
proving the moratorium on war debts
Will come first and tax measures second
on the program of the committee. He
declined TO comment on the tax pro-
gram to be submitted to Congress by
the President and Secretary Mellon,
but said that "it looks like some taxes
will have to be levied"
L am opposed to any tax increases
that can possibly be avoided" he said.
but 1t now looks like an increase will
be necessary.
FavOrs Lowest Tax.
Il hope it will not interfere with the
economic recovery of the country. I am
in favor of the lowest possible rate of
tax which will get the moneys sufficient
TO support the Government"
Necessity for additional Federal in
come has become increasingly evident
as the deficit of the Government grows
This deficit, according to the daily
statement Of the Treasury for December
B, was shown to be 1856, ,367 ,587 So, as
compared to a deficit last year on the
same cay of S299 789, 1890.
Inc moratorium program for a one
year holiday in intergovernmental
debts, however, will precede any con-
sideration of taxes, according to Mr.
HaWIey, because of its urgency. This
measure is expected to find no substan-
tlal opposition, as President Hoover OBJ
tanned support from both Republican
and Democratic leaders and announced
their support in his famous statement
OF last June. The moratorium has been
othclally agreed to by all the principal
powers, but still lacks the final ap-
proVal of the American Congress.
Debt Action Speed Doubtful.
How soon the moratorium legisla-
ton can be enacted remains to be seer
when Congress meets, but there arc
more than $125 100000 due from for
elgn powers to the United States Cr
December Is, which would be officially
payable on that date unless Congress
completes legislation on the moratorium
by that time. 1t was believed. in off
clal circles, however, that Congress
either will complete the legislation, OF
that some informal arrangement can be
made pending final enactment, to post
pOne payment by the several govern
ments whose debts are due this month
The Ways and Means Committee, il
is understood, will be organized with
IS Democrats and 10 Republicans Rep
reSentatiVe Jack Garner of Texas, who
is the ranking Democratic member, is
now slated for Speaker of the House
with little doubt existing that he will
swing the gavel. When he becomes
Speaker he will give up his ranking po-
Sltion on the important Ways and
Means Committee. it is predicted, sur
rendering that to Representative James
w. Collier Of Mississippi, the next rank
ing member, who is now in line to be-
come chairman.
Keenest interest exists over the pro-
pOsal to increase taxes. The matter
will be brought fully into the open
when the Presidents messages and the
annual report of Secretary of the
Treasury Mellon are presented.
The Ways and Means Committee
will frame the legislation for tax in
CTeaseS but what these will be or how
much, remains to be developed out OF
the recommendations of the admins
tration, and the eXigencies Of the po-
litical situation, with Democrats at the
wheel Of Congress and the Republicans
in the saddle at the executive END Of
Pennsylvania avenue.