Evening star., 1932-05-03
TAX BILL SPEED
ASKED BY WALSH
Senator, Speaking in Forum,
Voices Opposition to
Nuisance LevieS.

Speedy enactment Of tax legislation
by Congress in the interest OF indus
try was urged last night by Senator
David |. Walsh, Democrat, Of Massa-
chusetts, speaking in the National Ra-
dio Forum, arranged by The Star and
broadcast over a coast-to-coast net
work of the National Broadcasting Co.
In a general discussion of taxation
proposed in the bill passed by the
House and now in the Senate, Walsh
declared:
"To all the other adverse business
factors. the pendency CT the tax bill
adds a still further paralyzng hand
to business recovery. Our duty to the
Treasury and the public is to get the
revenues from the new taxes started
as soon as possible"
Argues for Sales Tax.
Senator Walsh argued in behalf Of
the manufacturers excise tax, which
was rejected u the House, declaring
it greatly preferable to the special
nuisance taxes to which We are now
obliged to resort" and which he said,
provoke Inequalities"
He said, however, he had little
hope" the Senate would vote the for
mer tax back into the revenue legisla-
tion unless assured the House would
change its stand.
Senator Walsh also said he favored
a tax on 275 beer, but unfortunately
saw little possibility" Of such levy.
He also urged against including tariff
duties in the tax bill
Text of Address.
The text of Senator Walsh's address
follows:
The present Congress has been called
unon to deal with many questions, but
none more vital and of greater urgency
than the questions involved in the
pending tax bill already passed by the
House and soon to be reported by the
Senate Finance Committee to the
Senate.
The worldwide economic depression,
the extent of which our modern world
has never known, has had manifold re-
percussions In our own land we nave
widespread unemployment, wage reduc-
tions, a fearful decline in security
prices. commodity prices and property
values; stagnation OF business, panK-
ruptcies and bank failures.
Social problems arising from unem-
pIoyment, want and suffering are ex-
ceedingly pressing, and economic and
business problems, relating to trade,
the banks and the railroads, we have
sought and are seeking to alleviate and
to remedy. 1t ought to be obvious that,
with respect to the social and economic
questions, the aid which the FeceraI
Government may extend Is clrcum-
scribed. In many cases, the remeoles
lie not with the Government, but with
society, or with circumstances peyono
the control of either.
The phase of the present situation,
however. with which we treat tonight,
is wholly within the purview and con-
troll of the Federal Government. 1t Is
the question of governmental finances
and what we popularly describe as bal
sncing the budget"
Tax Revenues Decline.
At no point have the consequences
o. cur Vanished prosperity been 20
oai-kly reflected and SO graphically
saown as in the swift decline OF the
F..cral tax revenues. Our Federal rev.
'enues in the main are dependent on
the incones of our citizens, the prontS
of or corporations and the volume OF
our foreign trade, particularly the vol
uir CT our imports.
IMPORTS have steadily declined, prof
its vanished and incomes slumped;
hence, our tax receipts have dwindled
until today they are approximately haI
what they were in normal times. Fur
thermore they are still pointing down
ward, while governmental expenditures
continue as large as ever. As with pri-
yate enterprise, so with the government
tai agencies, extravaganza and luxurles
were INDUCED during the recent era OF
prosperity.
Today the Treasury is paying out two
dollars for every dollar received. That
condition cannot long continue. 1t Is
the road to national bankruptcy. Tne
merchant on Main street, who day after
day paid out two dollars Tor every ooi,
lar that came over the counter, would
soon be in the hands of the sheriff.
Many of them are. Why is there
widespread fallacy that government
finances are immune in the matter OF
matching receipts and expenditures,
and that, unlike private business, gov
ernments may go ahead indefinitely
paving their bills in notes? There never
was a more mistaken belief.
We do not have to accept this propo-
sition on faith. We have only to look
to Europe and see what has happened
to prosperous nations whose expenol-
lures continued to outrun their income.
Deficit Of Two Billions.
When the Treasury balanced its
books, not on January /, but on June
80 of 1880, it discovered deficit for the
preceding IL months of approximately
one billion collars. The deficit was rep
resented by notes, Uncle Sans I. o.
us given to banks and individuals in
exchange for cash, with which the
Treasury paid its bills
The Treasury started a new account
at the beginning of the new fiscal year
last July. We are now dealing with
This new deficit. 1t is the largest ever
incurred by any nation in peace time
In the history of the world.
At the moment. this years deficit
stands at about two and one-haf bill
lion dollars. That Is twenty-five hun
dred million dollars of additional notes
which the Treasury has had to issue in
the past 10 months to raise cash to
meet its bills. While the expenses of
the Federal Government have ccatin-
ued TO run along at the annual rate 49,
four billion dollars, the Government S