The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-02
ECONOMY BILL IS
BADLY SHATTERED
IN House ATTACK
Prospect is That II Will Fail to
Bridge Big Gap in Fed
eral Finances
TAX MEASURE ALSO CUT
Revenue From it Now is Consid-
erabIy Below Former Es-
timated Yield
TAX MEASURE ALSO CUT

washington, May 2.-tP)-Congress
is up against the dismal realization
that all its efforts to balance next
years budget may fall short OF the
mark unless the already high tax bill
Is raised much higher.
The economy bill. If not already
completely wrecked. Is likely to be cut
80 low before the house Is done that
It will fail utterly to bridge with saw
ings the quarter billion gap between
expenditures and the revenue which
the tax bill has been expected to
bring In.
The tax measure, now in the senate
finance committee, also has been cut
considerably below the billion dollar
estimated yield with which the house
passed 1t. But the redrafting process
has not been completed and the COM
mittee may decide within the next day
or two to write it high enough to make
I'D the shortcomings OF the economy
bill. But it is clear that stiff and
highly unpopular taxation Will DC
needed to do this.
There was truce on the economy Dill
Monday in the house. Because OF
set rule that all other matters must
give way Mondays to secondary leglS-
jation on the calendar, the struggle
between insurgents of both parties anc
the leaders sponsoring the Dill re-
manned suspended until Tuesday.
To Debate Veterans Pay
Then the issue will be joined on
provisions which cut sharply into the
allowances of World war veterans lot
n saving to the government OF about
SAB 700 900. There will be desperate
fight to preserve this section Dut lew
leaders ere disposed to view the out-
look with any real hope. II the sec
ton Is knocked out. with the $ll1,'
100000 already thrown out by the un
compromising foes Of pay cuts ana
other slashes, the bill will be lelt a.
about a quarter of its original figuie
A final attempt will be MADE ns
Representa- tive McDuffie dem. Ala
An charge of the bill, TO have tne
votes which refused to cut fedora! sal,
aries of less than $4,000 and refused
X. eliminate Saturday half-ho'Ioays'
reversed on a roll call. In this ne Is
banking on the unwillingness OF many
members seeking reelection to race
their constituents recorded against
these savings. ,.
Hone that the presidents furlougn
MAN for government employees woulo
emerge from congress in lieu OF a iiat
salary reduction was expressed by wv
house Republican leaders a1ter sep"'
ate calls at the white house.
Representative Smell of New YORK
the Republican leader, and MS pre-
decessor in that position. Representa-
tive Tilson of Connecticut. told news
nanermen partisan politics had play
ed a part in defeating the iuriouga
plap. They said they had oiscusSeo
economy moves with the president.
Smell said he told the CHIEF eXecu,
Hye he believed many inolV'oual
members would not dare go on rec.
nrd against considering further the
furlough proposal. ,... -,
Tilson said that what is hitting Us
amidships" Is that unless something
As done with federal salary expenoii-
lures in the lower brackets. thousands
of low-paid workers will be dlscharg-
ed because of 10 per cent cuts IN ap'
preparation bills.