The Sauk Centre herald., 1932-06-02


try and keep it going. The propon-
ents of taxing the rich admit some
of these claims, but insist that the
incomes are still ample and that the
taxes shall be laid where the great
est ability to pay exists.
There is a good deal of bitterness
involved. The exposures of how
our international bankers rugged
the bond markets and swindled our
people by selling them worthless
foreign securities have caused a
feeling of intense disgust and bit
ternass toward those whom we used
to regard as our financial leaders.
The "Drive on Congress" by these
same people, whereby they have
sought to defame and besmirch all
members opposed to them, has add
ed fuel to the flames. Congress at
this moment is full of animosities,
far beyond any that have existed
for many years.
The final outcome will probably
be a compromise. 1t is not likely
the income and inheritance taxes
will be set at the high rates to
which they were driven by the
"revolt" in the House some weeks
ago. They are likely to be much
higher than originally proposed in
the first committee bill. On the
other hand there is a feeling devel-
oping that if a part of the increase
must be placed on the general pub
lie small sales tax might be bet
ter than the excise tax on checks,
etc., and the Senate may revive the
sales tax in modified degree. Then
there will be radical reductions in
the ordinary expenses of the gov
ernment, as indicated by the ap-
preparation bills already passed the
House, where the allowances have
been cut some 600 millions below
last year for the same items, with a
probability that this reduction may
go up to 300 million when all the
appropriation bills are finally
passed.
During the flush years of pros
perity-and they really did exist
here in the east-our government
took on a good deal of weight in
the way of new activities, new ex-
tensions of old activities and larger
pay rolls. We are now in the posi-
ton of a fat person trying to re-
duce, and it isn't easy. Most of the
new activities are centralized in
Washington, where the cost of liv-
ing is still very high. The process
of cutting down is, however, well
under way as evidenced by the big
cuts in the appropriation bills.
Statements are being made by
British officials that there is no
intention of their country to repu-
diate or cancel obligations to the
U. s. government. While there
hasn't been any strong doubts as
to Britain's position that the state
ments have had a re-assuring tend
ency' among our high officials.
Great Britain has a national debt
of % billion dollars-ten billions
more than ours-and only about
one-third the population and re-
sources that we have, but seems
now to be pulling out Of the de-
preston period.
The most important movement in
a formative stage at the national
capital at this time is the drive for
unemployment relief by means of
government aid. There are sever
al proposals, with the probability
almost certainty that one of them
will be accepted. There are assur-
ances also that the Big Three ma
tional farm organizations relief
program will come to vote in the
Senate. The bill was introduced
by Senator McNary. At this writ
ing the House Committee on Agri-
culture has instructed sub-com-
mittee to draft a marketing allot-
ment bill, which is one of the three
features of the McNary bill.