Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1932-02-11

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12 million dollars additional capital
for the benefit of farm borrowers,
and the Reconstruction Finance Cor
p~oration, the most gigantic enterprise
ever undertaken to release capital
and stimulate business activity thru
out the country, safely on the statute
books, the next important measure of
the Presidents program to receive
consideration by Congress probably
will be banking legislation with par
tnular emphasis on relief to deposi-
tors in closed institutions. Hundreds
of banks have been forced to close
their doors, not because they were
insolvent, but because their assets
tied up in slow securities which
under prevailing conditions could not
be mace Immediately available. 1t is
hoped that the new banking measure
now being whipped into shapeby a
Senate committee will contain pro-
visions under the operation of which
the good, but slow, paper in these
closed banks can be taken care Of for
the relief of deposItors whose funds
are now tied up, awaiting the tardy
process of a receivership. If this
purpose can be achieved it will be a
measur of direct relief the benef-
cial effects Of which will be felt in
hundreds of communities. The bill
is receiving non-partisan considera-
ton and early action upon it seems to
be assured.
Another angle of the non-partisan
emergency program proposed by
President Hoover-increased taxa
tion to balance the budgets before
the House Ways and Means Commit
tee at the present time. Both Demo-
Gratis and Republicans are looking for
new and richer fields of taxation and
the Committee is holding hearings
on proposals to levy Federal taxes
on electric energy, household gas,
gasoline and oil importations- The
hope of those drafting the bill is that
Al a result OF its operations Federal
revenues will be sufficiently increas-
ed to bring about a balanced bud
get in the course of two or two and
one-haH years.
A recent report by the Bureau of
Foreign and Domestic Commerce, De
partment OF Commerce, shows a de-
cline in international trade of 40 per
cent since 1929-further evidence of
the fact that purchasing power has
declined throughout the whole world.
World trade in 1881 was at approx
mately the same level as 20 years
ago. The fall in prices lis account
able for a considerable percentage Of
this decrease rather than a decline in
volume But the total figures show
ing the foreign trade of 54 different
countries indicate that the decline
has been fairly uniform throughout
the world The loss in exports by
the Uuited States, comparing 1929
with 1881, was 81, 610,O 900 900, while
the decline in imports, as of the same
dates, was $1,417, OOO, 900. The ex-
cess IN the loss Of exports over i'm
ports is accounted for very largely
by the decline in the prices OF agra-
cultural and mining products and
smaller demand for them j n the a
kets where they are usually absorbed.
$3.50
In its action thus far, the new
Congress has evidenced determination
to restrict appropriations to the low
est limit compatible with the proper
functioning of the various depart
ments Of the Government. Already
in the three appropriation bills thus
far reported the axe Of r~etrenchment
has been applied TO the extent OF
cutting 80 million dollars from the
recommendations Of the budget. That
does not e a very large amount
in comparison with the grand total Of
necessary government expenditures,
but it represents the most careful
study on the part of Congressional
committees and is especially signifl-
cant because OF the fact that the
recommended appropriations as they
came from the hands Of the Budget
Director already had been rigidly re
stricted. In view Of the attitude of
Congress, as Indicated by its action
upon appropriation bills already
brought forward, there does not seem
to ba much apprehension that the
stupendous sums asked for by many
bills introduced in both Houses will
receive favorable consideration. With
out regard to party it seems to be
fully recognized by responsible mem
bers that the first duty Of the Cong
ress is to balance the Federal bud
get, and that can only be accom-
plnhed by limiting expenditures to-
gether with increasing taxation
Reports from the various Federal
Reserve districts contain many en-
couraging business indications. From
Boston, for example, comes the state
ment that the consumption of raw
wool in that area was nearly 20 per