Evening star., 1932-12-14

the main been financed by certincates
with q. .2ss, ,ooo, 900 Of Fourth ~
Liberty Bonds maturing by 1888 and
callabie In 1898, and with $536, 600, 600
OF First ~ Liberty Loan bonds now
callable, q refunding Is desirable, pro-
yiding bonds offered do not carry an
interest rate in excess OF that which
the high credit of the United States
calls for.
Balanced Budget Needed.
"The success Of such an operation
would be greatly facilitated by bal
anced budget. It would have. in my
Judgment, q most favorable effect on
the long-term money market and vital
lie the whole credit structure.
"The availability Of capital on rea-
sonable terms would, In turn. create one
recovery It would be enormously help
full in stimulating improvement IN the
capital goods industries-that is. the
heavy industries.
"The market believes the funding OF
short-teTm dept into long-term bonds
to be inevitabA The uncertainty as to
the time and terms OF this operation.
added to the uncertainty as to when
the budget will be balanced and the
Government retire from the market as
a borrower Of additional funds, are dis
turbing and unsettling factors"
At the conclusion Of his statement,
Mills was questioned at length leading
finally to q heated exchange with Rep
resentative Rainey Of Illinois, the Demo-
cratic floor leader and charge by
Mills that his veracity on the tax bill
enacted last year had been challenged.
DO I understand that the admins
tration favors the bill?" Rainey asked.
Other Phases Of Question.
II am not here to give you the ad.
ministration's attitude" Mills roared
back. IT am here only to discuss the
revenue features Of the legislation.
Aside from the revenue phases, there
are social and constitutional questions in
this legislation, which do not fall within
the Jurisdiction Of the Treasury Depart
ment.''
will President Hoover sign the bill?"
Rainey pursued.
"Oh. Mr.. Rainey," Mills said with q
shrug, "you know no one speaks for
the President"
do you favor the bill?"
Il am not here to present the Presi-
dents views or the administration s
views" Mills replied. II am not here
to express my personal opinion"
Shifting to Mills recommendations
that a sales tax be adopted to balance
the budget. Rainey asked: !.
why did we not receive support
from the administration on the manu-
facturers' sales tax last year,"
You did from me-l00 per cent,
Mills shouted, shaking his fist at
Rainey. II indorsed the bill your COM
mittee reported out in radio broad
cast
Rainey said the Treasury had made
miscalculations in the anticipated den,
cits in the past three years and ADDED
that in the formulation of the tax bill
last year you. the Secretary OF the
Treasury. admitted you were wrong by
s4O0 ,000,O0 in balancing the budget and
YOU did not know how much the deficit
would be until you got outside help.
SAYS Baruch Helped Out.
"Now I think we ought to set the
record straight" Mills replied. The
figures we submitted to you were on the
basis Of September estimates. and then
said they were tentative and that sub
seouently I would submit revised fig-
ureS."
Referring to a visit Bernard NJ.
Baruch made to Washington during the
formulation of the tax legislation,
Rainey said Mills suggested this out
side help" be called in.
TT was never made at my sugges-
ton" Mills said. They made no con-
tribution. I never agreed with their
figures. They agreed with ours
Rainey insisted Mills had been short
in his estimate last year that the deficit
would be $920000, 900, and added:
"Now let's be truthful about this
Even the Secretary Of the Treasury
ought to be truthful"
Standing on his toes and flushed,
Mills waved his arms and shouted.
LAS long as my veracity Is challenged
I would like the record clerk get me the
record"
A committee clerk left the room and
produced a copy of the hearings before
the committee last January and read a
section in which Mills said his figures
were tentative
"The purpose Of my questioning is
to show you that your suggest $ have
not been of the slightest value" 4iainey
said
THE committee adopted your rec
concentrations and they have failed to
produce by SO per cent" Rainey in
sisted
Il recommend the sale tax in March,
Mills shouted again.
mo man on this committee heard
you," Rainey replied.
Estimates Were Bad.
Il don't know what more Secretary
Of the Treasury can do than to make
an announcement that he supported the
sales tax 100 per cent and then made
talk over Nationwide hook-ul
supporting it."
Representative Doughton, Democrat
Of North Carolina, asked again if Ber-
nard Baruch had not presented estimates
Of revenue to the Treasury last year.
TN give you the facts" Mills told
him vehemently Il don't know what
you are talking about when you mention
Baruch and his estimates. Let me tell
you that the only estimates you ever
had came from the Treasury.
THE estimates were bad. admit
that. If you want to take the re-
sponsibility off my shoulders and put
them on Baruch, very well, but I have
told you the truth"
I'm glad you admit they were bad. y
Rainey broke in. Your estimates have
always been bad