Evening star., 1932-12-13

4 sion Is to be mace IOf the QeSLlLuLe ano
needy. Even If suggestions for repeal
ing non-service connected disability for
veterans should prevail-and this wfll
resistance-there will be necessity to
authorize the levying Of more reve-
nues than are now in prospect under
existing laws.
| Beer Tax.
Some have advocated, q tax on beer
as a practical method of adding to the
Governments income. Any tax of this
nature to be fruitful must be preceded
or accomplished by changes in the Vol
stead act increasing the alcoholic con-
tent of beer within the Constitutional
J limits. There has been no authorita-
tive definition Of what actually consti-
tutes Intoxicating beverages with re-
spect to beer substantial increase
is possible without coming in conflict
the amount of the increase which Is SO
permissible has not been definitely de-
cided upon
THE question has also arisen as to
the amount of revenue which such a
| tax will yield. In no sense claiming ex-
pert knowledge on the subject, one may
be justified In saying that it probably
will be much less than many propo-
nents of the beer tax have claimed. but
it certainly will be substantial. With
out doubt 1t will add materially to the
| effectiveness of efforts to overcome the
deficit. No one fairly can assert that
! a beer tax alone will make up the re-
| quirements Of the national Treasury
| unless there should come a marked and
! 1t may b. said. somewhat unexpected
revival o, business and increase in
earnings in the early future
/ Aside from the constitutional ques-
tion already referred to there is no
| such complexity in the subject as JUS
! tifles delay or indecision in dealing with
| this question. Undoubtedly the man
ner OF administering the law will give
rise to issues which are both impor-
tant and complicated, but such troubles
lnhere IN the liquor problem, and no
ideal way of dealing with them is likely
to be found. even should the law-mak-
ing authority procrastinate. The legis-
lation should be brought forward and
disposed OF as speedily as practicable to
the end that if beer tax is not to be
,, relied upon. other methods of raising
additional money may be resorted to-
While the present session of Con-
gress is not likely to undertake gen.
eral revision Of the tariff or income
tax schedule with view to increasing
the revenues. it is clear to me that the
, incoming administration may find it
necessary to deal with these subjects in
order to balance the budget and find
whatever amount may be wanting II
the results of economy measures and
other plans in prospect have been
| adopted and their effects on the Treas
ury have become known.
There is much ground upon which
to rest the conclusion that national
expenditures for capital account may
, be passed on to the future in the form
OF bond issues in SO far as this may
be done without defeating the pur-
pose to sustain the Governments credit.
This proposal might be made to apply
to some three hundred or four hun
dred millions dollars in our necessary
annual expenditure. Since the Gov
ernment debt is already very heavy and
daily on the increase, any new legis-
latlon which seeks to pass on to the
future the costs of present operations
should be scrutinized with care lest in
the long run it increase, rather than di-
minish, the difficulty Of the problem
pertaining to the deficit
Acute Problems of Agriculture.
THE situation respecting agriculture
is acute! Due to decline in the prices
of agricultural products out of propor-
ton to other commodities. there has
beena breakdown of agricultural credits
which if permitted to go on will indefi-
nltely postpone and prevent the return
OF prosperity This breakdown OF credit
has made it impossible for farm pro-
ducers to meet their obligations. Their
LANDS are heavily mortgaged. Values
! have declined so that the foreclosure Of
real estate mortgages is becoming
alarmingly general. Millions Of farm
ers during the last few years have seen
the savings of lifetime swept away
and find themselves facing the task of
earning livelihood for themselves and
their dependents when advancing years
and generally prevailing conditions are
exceedingly discouraging. almost hope
less Whether any arbitrary plan such
as the debenture, the equalization fee.
or the allotment If fairly tried out will
prove effective can be determined only
by experiment. The result hinges on
the possibility of restoring prices to a
fair and compensatory level. and this
seems tied up in SO far as markets are
concerned with the disadvantage the
American farmer labors under in COM
peting with foreign producers due in
large part to deprecated currencies and
the situation respecting foreign ex-
change. This subject of itself is of suf-
flcient Importance to claim separate
consideration
That that subject must be dealt with
legislatively is undeniable. The Con-
gress is deyoting itself to the study of
the problem with view to the prepa-
ration. presentation and passage of re-
lief measures which will be designed to
accomplish two chief purposes: First to
cause rise in the prices, particularly
of staple agricultural products. Second,
to refinance farm mortgage indebted
ness SO as to give the farmer a resson-
able period of time in which to begin
recovery by reducing interest rates and
postponing installments of principal
for period of say two years and by
spreading the installments with due
consideration to the time that recovery
may require
"A fair inquiry into the subject will
reveal that neither the Federal nor
Joint Stock Land Banks have desired to
pursue policy oppressive to tLeir bor-
roWers These banks have thsir own
obligations to meet-obligations in the
form of bonds which have been widely
scattered through the markets. OF
necessity they must collect sufficient
amount in the aggregate of the INSTALL
ments due them to meet their own bond
maturities or pass into receiverships
which will cause conditions almost in
tolerable to borrowers.
ANY plan which deals with this sub