Evening star., 1932-02-29

When Senator David A. Reed, Penn
sylvania Republican, from the steps OF
| the White House last September,
| launched a proposal for a general sales
| tax as means of raising Federal
revenues to meet the growing deficit 1t
was given the cold shoulder by Secre-
tary Mellon, frowned upon BY Mr.. Hoo
yer and denounced by the Democrats
Senator Pat Harrison, ranking Demo-
crat on the Senate Finance Committee
then, declared that a sales tax has no
chance of receiving the backing OF even
a respectable minority in Congress.
Today the leaders of both parties in
Congress and the Hoover admtntstra-
ton are more or less reconciled to the
prospect of the adoption Of modified
sales tax plan embodying levy upon
most manufactured products as the
only way to bridge the financial chasm.
Senator Smoot was fighting for gen.
eral sales tax way back In 1921 as
substitute for excess profits taxes, the
high income surtaXes and the war
time nuisance" taxes. The Senate
would have none of 1t then. President
Harding proposed sales tax as a
means of raising the funds to pay the
soldiers bonus. Senator Smoot only
last November declared "a sales tax Is
the easiest and surest way OF raising
revenue" but after he had called at the
Treasury the Utah Senaecr hedged on
the general sales tax plan and advo-
Gated a broad system of excise taxes In
line with the Treasury proposals. Since
1920 Canada has obtained annually
from one-eighth to one-quarter OF her
total revenues from general sales tax.
X II 4
10 -
metrically opposite makeup were pay
ing calls on Capitol Hill last week
ex-senator James A. Reed, Democrat
of Missouri, whose scorn of reformers
and contempt for prohibitionists is un-
stinted, and Gov. Clifford Pinchot, Re-
publican, of Pennsylvania, reformer and
dry crusader de luxe. Both men have
longed for the presidency. Jim" Reed
called upon Speaker Jack" Garner
Reed said he expected to have the
Missouri convention delegation IN his
vest pocket. Garner could have said
the same thing about the Texas dele
cation. Both Reed and Garner in their
time have been doomed by William
Randolph Hearst. They have that BOND
in common. Gov. Pinchot called on
Senators johnson and Borah. Accord
ing to report he found neither insur-
gent responsive to suggestion that they
pit themselves against Mr.. Hoover In
the Republican convention. P1nchot
himself has been pictured as on the
verge of taking the plunge into the
cold water of the Republican presiden-
tial primaries, If only some one would
give him a push of the springboard.
China's trade boycott of Japan, in re-
cent months, in retaliation for her
grievances against her aggressive neigh
bor, Is not the first time the willy China
man has resorted to such tactics In his
international relations. Perusal Of the
State Department files brings to light
the now forgotten episode when China
attempted q boycott Of American goods.
It was In 1905, when China was an
gered by our Chinese exclusion policy
and sought to force our hand. The boy
colt was put into effect in Canton,
Annoy, Foochow, Shanghai, Hankow,
Tientsin and, in fact, in every trading
center of the empire where American
trade had permeated. 1t continued for
six months, and while it lasted was
vigorously observed. But it did not
bulge Uncle Sam, nor did 1t start a
war.
Reporting on Republican insurrec-
ton in the farm belt, travelling Jour-
nalist sends word from Minnesota that
the Farm-Labor party in that agrarian
land is as f1ourishing as ever-perhaps
more hourishing than ever. The Min
nesota Governor, Floyd Olsen, a sturdy
Farm-Laborite, up for reelection this
wear, is quoted by this veracious re-
porter as saying: MY father was q
Swede my mother was a Norwegian.
I married q Bohemian and I speak
Yiddish. How can they beat bird
like mel" Nevertheless, the Mime
sofa delegates at the Republican Con-
vention at Chicago win be voting for
Mr.. Hoover when the roll is called.
Silas H. Strawn, president Of the
United States Chamber of Commerce,
sailed for Europe last Friday to par
ticipate in the Paris meeting of the
Executive Council of the International
Chamber Of Commerce, which convenes
March II. Mr.. strawn Is vice presi-