Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-22

Continued From First Page.)
bicycles, paper board, coal and gum
powder. Smoot said, however, that II
the Congress deemed 1t wise 1t could
place countervailing duties on other
articles, which are affected by the
British tariffs. He was not willing to
would advocate such changes in the
law.
Opposes "Retardfng" Tax.
Senator Robinson, in a statement to
the press dealing with Federal tax re-
vision, indicated he was opposed to the
imposition of taxes which might greatly
retard business recovery or to taxes
levied for the purpose of redistributing
wealth or reducing fortunes. The Dem
ocratic leader may himself be in oppoSi-
ton to some of the other members of
his party If he insists upon his present
position in regard to taxes, for some OF
them are planning to hit hard the big
ger incomes in the country.
Perhaps the greatest and most
pressing legislative problem pertains to
the method by which the deficit shall
be overcome" said the Democratic lead
er. The subject is associated with
numerous difficulties and requires some
what different treatment from that
which might be best applied in balance
ing the budget during prosperous times
The initiative, of course, is upon the
House of Representatives and every pos
sible effort will be made by the Demo-
Gratis to deal with the subject in a
spirit of justice and Cancellation TO
every interest involved.
Such increases in taxation as are
found necessary should be imposed, with
due regard to the principle that the
best way to secure laborers in their
employment is to promote confidence
by rejecting measures likely to discour-
age investments in productive enter
prises. It is generally understood that
there Is limit to the rate which may
be imposed without discouraging invest
ment and production.
I'm order to avoid the levying Of
income surtax rates SO high that they
may be calculated to prolong the ex-
isting depression, I recommend that
consideration be given to the authori-
cation of BOND issue sufficient in
amount to cover that part Of the deficit
which is not overcome by increased
revenues. Such an issue should be
supported by provision of the law that
would make it attractive. Interest
rates are comparatively low. 1t is,
therefore. an orportune time to sell
Government bonds, provided, Of course,
amounts and assurance Of prompt re-
demption.
Taxes Only for Revenue.
TN my humble opinion, taxes should
not be levied for the purpose Of dis
tributing wealth or reducing fortunes,
but solely with the view of obtaining
revenue. Taxation on any other prin-
ciple approaches conhscation."
Senator Robinson added that he rec
ognized the need of balancing the
budget. He said that everybody talked
about economy. but mo one practices
it" and that there were constantly in
creasing demands for increased gov
ernmental expenditures. He said the
Government would be fortunate IL ex-
penditures are not increased.
A caucus of Democratic Senators to
discuss the legislative program of the
coming session ana matters of organi-
cation, he said, would be held as soon
as the Senators have returned to Wash
tngton.
Senator Robinson, again calling at
tention to the fact that all revenues
measures must arise in the House, said
he believed that some tariff legislation
would be attempted, but that it was
doubtful such legislation could get
through and become law.