Evening star., 1931-12-10
The Political Mill
Dy G.. Gould Lincols.

~ U. UOUt4 LINCOLN.
A new bone has been thrown to the
political dogs Of war On Capitol Hill
the Hoover-Mellon tax revision and tax
Increase plan. The indications are II
viii b fought over bitterly and when
It ernsrsss from the fracas in the form
Of an act Of Congress and goes to the
President for his approval he may No,
be able to recognize the plan which he
and his Secretary OF the Treasury
originated.
Taxes threaten, indeed. to beeome
an important issue In the national cam
paign. Few, II any. get pleasure out
OF paying taxes. An increase ia taxes
proposed on the eve OF q national cam
paign is courageous move on the
part OF the administration, even though
the taxes be vitality needed to help bal
ance the budget. But no one expects
1t to be . popular move. The Demo-
Gratis realize the unpopularity OF In
creased taxes. They are already
planning to offer q tax plan of their
own. 1t probably will be . more sugar.
coated affair than that advanced BY
the administration. That has already
been indicated by Democratic spokes-
men, who attack the President and Mr..
Melons plan to lower the personal ex-
empttons OF the income tax and increase
the normal tax rates, and who deride
proposals to tax checks and drafts, tele-
phones and kilograms, radios and the
hke The effort of the Democrats will
De 70 convince the taxpayers that II
VIII be lighter and certainly that mary
thousands Of voters will escape the
income tax who would be taxable under
the Hoover-Mellon plan.
After repeated warnings that unless
the expenditure of public funds was
checked and drastically reduced, is
sued from the White House and the
Treasury Department, it would be
necessary to increase the tax levies, the
blow has fallen at last. The members
OF Congress, Democrats and Republicans
alike, who are inclined TO attack and
DO attack the proposals Of the Presi-
cent for tax increases, might have
thought OF the American taxpayers
while they were voting in the last
Congress for the expenditure OF huge
sums of money, not the least of which
was the so-called soldiers bonus loan.
which called for putting out more than
billion dollars at q time when the
Federal Treasury was rapidly rushing
toward a huge deficit. Mr.. Hoover
vetoed the bonus bill, and 1t was passed
with whoop over his veto. And to-
day there are clamors for more big
governmental appropriations, with the
understanding that the money is TO be
used to go anead with huge construc-
tion programs and that the money is
to be borrowed
The plain truth of the matter appears
70 be that 1t would be unWise for the
government to undertake to borrow
even the whole amount needed to wipe
out the present deficit, which may run
70 SZ'oOo,e0O. 900 by the close Of the next
nscal year unless taxes are increased
and the revenue grows larger. YET the
present Congress will doubtless be
delused with pleas, many of them .d-
vanccd by the members of Consress
themselves, for appropriations ranging
from . little billion dollars to i've Bill
hons OF dollars to provide building pro-
grams OF every kind and description.
Inc credit OF the United States Govern
ment is sound, up to the present. What
the Congress does in the coming session.
unless there is wise leadership, NAV
snake the national credit to the founds-
tlon. once let the American people be-
come fearful OF the stability OF their
own Governments money credit And
the situation is likely to become chaotic.
Taxes, therefore, take their nlace
alongsiae of the tariff, prohibitior, and
water power, not to mention the bust
ness depression, as q major issue for
the national campaign. Some of the
PRESIDENTS Republican advisers, partt-
cularly those on Capitol Hill, pleaded
with him not to raise the tax issue at
THIS time. But other Republicans, in
ciuolng Senator Reed Of Pennsylvania
ana Senator Binghsl, Of Connecticut.
argued tnat II lncree d taxes were nec-
essary Immediately they should be
ieVieo ana that the piople should realize
orgy OF goveTnmental spending.
The imposition Of additional redsra,
taxes In this country Is ukeIy to rsis.
considerable more opposition 10 sus-
pension of the payment Of govern
mental debts, owed this country hv
foreign nations. Senator Hiram John
son OF California has introduced ana
Will seek immediate action on a reso-
luton authorizing and directing ths
Senate Finance COMMITTEES to inyesti-
gate the sale, dotation and aflocatior
oy banks, banking institutions ar in
alVlduaN OF foreign bonds or sec,irities
N the United States" Il is ressrdsd
Is an opening sun in the flRht which
the California Senator propoxes h
make on the Hoover moratori,,n,
senator johnson believes that II nj,
Ine Iacs were known regarding the
huge sums OF American capital taken
away from this country In the sale
asre 1 OF these foreign securities, there
WIZ pe less sympathy for the Situation
a n when the foreign governments And
'hemseiVes today and greater demand
'iias tne oents to America Be paid.
The Senate has INDUCED for the last
W. oaya N warming-up gallop" for
wa: rs expected to prove an acri-
,n no,.ious session. Seven ballots have
3sem ,n; axen on the motion TO elect q
a.. F>N sSAAPo4U, pICSlQlQR o.
lcer r VINO acts tn the absence of the
wee President. Thirteen republicsns
md one Farmer-LAbor Senator nave
ast their votes against Senator George
I. Moses of New Hampshire. who has
erved Tor several years as President pro
empore, The fight is scarcely one of
'rlnciple. 1t is one of personalities. Mr..
Noses has aroused the anger of the pro-
'ressive Republicans from the west on
everal occasions. The Progressive Re-
'ublicans have taken this route 10 sIan
t Mr.. Moses, although he is the choice
4 the Republican party In the Senate
or the odlce of President pro tempore.
But because of their opposition to
he cotner OF the phrase 1.-The sons Of
ne wild jackass," the ProQressives
lave decided among themselves that
mere Is to be no consideration for the
majority rule formula and that thev
VII run amuck against the New Hamp-
hlre Senator. There is remarkably
title interest in the country over this
quabble among the Republicans, but
1t is kept up and the Senate finds
tsell ued up over the row when 1t
hn1i1d ho dntrn