Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-25

DObfl HOUSES.
At the opening of the present Ses-
sion Senator Walsh Democrat, Massa-
chusetts) introduced bill to reimburse
the States and their political Subdi-
visions for certain relief expenditures.
This bill provides for the authorization
of an appropriation of 100000, 900 and
for the payment out of the Federal
Treasury TO The States and munich
palities during 1880 and 1881 of so
per cent of all funds expended by them
in excess of the expenditures they made
in 1929 to relieve suffering, poverty and
distress resulting from unemployment.
part-time employment and general
business depression. In other words,
this bill would require the Federal
Government to pay one-half of all in
creases in 1880 and 1881 in certain
relief expenditures in the several
States. There has been no legislative
action on this measure to date.
Proposed Extensions.
Several proposals for extending or
modifying the Federal-aid system have
recently been put forward by unofficial
groups interested in the Federal relief
of economic distress. In 1929 the
American Farm Bureau Federation
adopted a resolution asking that the
various States and the Federal Gov
economic opportunities, assume in
greater measure the support OF the
public schools and public roads" EX-
tension of the present Federal-aid
highway system to include 'farm-to-
market roads is urged by virtually all
agricultural organizations. To enable
the Federal Government to assist n
building such roads, the American
Farm Bureau Federation would not
hesitate to approve (the appropriation
of Sl75,000,000 annually"
Federal school subventions to the
States making each State responsible
for budgeting the grant within the
State school budget in such manner as,
in the judgment of the State itself
will best develop all the talents OF all
the people" were tentatively proposed
on July 10, 1880, by the National Ad-
visory Committee on Education ap-
pointed under the Hoover administra-
ton. The committee suggested an an
nual payment of $3.50 for each student
under 81 years of age, in lieu of the
smaller grants at present given to the
States in aid OF agricultural colleges and
other special educational purposes.
Methods of giving directly or indi-
rectly to the States part of the returns
under Federal tax laws have also been
under discussion. The 1880 legislative
program of the National Grange in
cluded a provision stating that "as
means of equaliZing the burden of tax
alton, the Grange favors distribution
of a portion of the proceeds of the
Federal income and estate taxes among
the States on the basis Of school re-
QuirementS or some similarly equitable
basis" State inheritance or estate
taxes are already fostered by the policy
of deducting from the Federal estate
tax an amount up to 80 per cent If
this amount has already been paid to
the States. Farm organization leaders
are now proposing that the Federal
Government also permit the deduction
of State income tax payments from the
amount due under Federal income tax
laws.
In the course Of the debate in the
Senate on the bill making supplemental
ton of public works. Senator Blaine
Republican, Wisconsin, proposed an
amendment to the section providing
$50, 000, 900 for advance apportionment
to the States under the Federal high
way act. His amendment provided
that the States respectively shall not
be required to provide any sum for the
purposes contemplated by the said act
as a condition of the receipt of any
IuIlQS IeISDy dpplOpIAdbCO. AA4C
Blaine amendment was rejected by
vote of 40 to 80 Had it prevailed
and been approved by the House, the
bill would have authorized outright
grants to the States for road construc-
ton.
There are some who object to the
Federal-aid system on the ground that
it is unjust and who argue for outright
Federal grants to the States, unaccom-
panied by the condition that the States
match the Federal appropriation.
Their argument runs as follows: The
Federal-aid system depends upon State
contributions for the provision OF vari-
Gus essential services. and In some
cases the States are unable to do their
share Despite large State and Federal
expenditures on highways, for example
some States still have no adequate
highway system. According to the as
sessed valuation of all property, the
ability of poorer States TO construct
their mileage of approved Federal-aid
roads is much less than that of the
Weather States. The States also vary
greatly in the population which paws
in part for Federal-aid projects. More
over. some States. according to the
amount of taxes they receive for high
way purposes, are less able than others
to carry on their approved Federal
road system. Finally, different sections
of the country are more favorably sit
uated in respect to road building than
other sections because Of much larger
population. mora wealth per capita,
better bodybuilding material and bet
ter railroad facilities for the transpor-
tation of these materials.
Opposition 10 Such Aid.
The American subsidy system has
been opposed since its inception on
numerous grounds. AS far back as
1884 the Democratic national platform
voiced the opposition of the party ito
all propositions which, upon any pre-
text, would convert the general Gov
eminent into machine for collecting
taxes to be distributed among the
States or the citizens thereof" More
recently President Coolidge, in his
budget message to Congress in Deem
Der. 1924. said: II am convinced that
the broadening of this field of activity
is detrimental both to the Federal and
State governments Efficiency of Fed
eral operations is impaired as their
scope is unduly enlarged. Efficiency of
State governments is impaired as they
relinquish and turn over to the Fed
eral Government responsibilities which
are rightfu!ly theirs. / am opposed TO
any expansion Of these subsidies. My
conviction is that they can be curtailed
with benefit to both the Federal and
state governments"
Former Gov. Lowden of Illinois and
Gov. Richie of Maryland have at
tackled the Federal-sid system as an
improper invasion of the State field,
involving the gradual breakdown of
local self-government in America.
An analysis of all recorded votes in
Congress on the Federal-ad measures
of the last 20 years shows that con-
gressional opposition to most g. the
subsidy laws centered in the Ne1I Eng
land and the Middle Atlantic States,
regardless of party affiliation. suggest
ing that a congresSmans attitude to-
ward Federal aid is determined almost