The Waterbury Democrat., 1932-05-31
Democrats Told By Hoover That Higher
 Taxes Are. Needed

{, to raise $0G3, ,500, 000--wlthin $46,. | 500, ,OOO of the amount first set by | tho treasury us necessary to bal. anco the budget, Thon President Hoover cnlled democratic lenders to the White | House last night and told them that between $200, 100000 and $400, 000 1000 more was needed. He HnId further business recosslonb had forced tho treasury to lower It's estimates of what tho bill would yield
 With the senate democrats at tho White House were owen D. Young, Now York financIer, Governor George Harrison of tho New York Federal Reserve Bank and Secro- tary of Treasury Mills.
 According to some of the demo- crats at tho conference. the presl. don't suggested the extra revenue might Do raised by tho Connnlly in. como tax rates and by special exise taxes that tho senate eliminated from tho house bill.
 Mills said he was reudy 10 lay somo now revenue proposnls ls before tho senate finaneo committee to. day. Prom his previous recon. mendntions, lt was believed no might again urge levles on gaso- line and electricity.
 Mills had treasury experts ht work on n complete new appraisal of tho tax bill showing how many more millions must be added to the measure to balance the budget.
 With b5 senators -- six more than n maJorlty-pledged against Af. Ian tna nAn A that system stayod off every at. tompt to forco n vote that would dispose of tho issue. They argued that the new. troasury estimates would show that business has dc. clIned go much that a general tnx on all manufactured goods ib tho only satisfactory way to balance tho budget.
 senator Reed, republican, Penn- sylvanin, a salos tnx leader, ar0uB- od tho senate last evening with n declaration that foreign raids on tho dollar and exports of $100, ,000.. 900 of gold from New York Inst week were duo to dolny in passing n satisfactory tax bill. He sald gold WithdrnwnlB were being llmited only by tho extent to which oagor shippers could obtain insurance,
 "Ilonvcn only knows how much moro gold will be takcn out this 1 week." Rood snld, I've enn stand tho run for n time, but If it con- | tInues it will amount 10 q gold cm. bnrgo and drive us off tho gold | standard"
 Senator LaI'ollotto, republican, Wisconsin, sharply rebukod Reed, declaring tho pensylvlnlan's ro- mnrks were "caiculnted Co croate both q domestic and foreign run on inc American doilnr." Reed in hiS campaign for tho Bnlos tux has per- | iodically reminded tho senate Of the gold situation.
 "rhe proponents of tho sales tax | do not hesitate to strike a blow at tho s0undness of the American d0l- | jnr," LaFOllette declared. PTho budget would Dc balanced tonight | but for tho mancuVering of tho nd- v0cates of the sales tax. Responsi- | bility for delay and enhancing the ] panic rests upon them" Democrats nssailed tho admlnis- | tratlon for having waited So long to aeknow ledge that the senate tux bill would not balance tho budget
 When Reed brought word that | the treasury was revising US esti' mate, Senator connally demanded;
 "The secretary of the treasury was before the finance committee repeatedly--if he know tho treas- ury estimates were wrong, and the senator from Pennsylvania knew they were wrong, why have they withheld the information until the last minute?"
 Reed replied that "in the last three weeks the picture has chang. Cd very much for the worse" and he then went into the gold situa- ton.
 It was understood that the drain on this country's gold reserves also discussed at last nights White House conference with democrats. In a similar conference Sunday night the president met with re- ! publican senate leaders.