Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-09-14
FORCED INITIATION
| SEEN BY HARRISON
Senator Says Congress Will
Act if Executive Delays
Much Longer.
BY G. GOULD LINCOLN.

Senator Pat Harrison of Mississippi,
chairman of the Senate Finance Com
mittee, predicted today that If tfS
Roosevelt administration did not takr
steps soon under the terms of the
Thomas imitation amendment to bring
about imitation of the dollar, Congress.
on its return to Washington next Janu-
airy, would amend the law to make
the lnf1ationary provisions mandatory
and not merely permissive.
The Mississippi Senator has been in
washington the last two or three days
urging, first the President and then
officials of the Treasury Department,
to bring about some measure of ~
f1ation before the American farmers
have disposed of their crops, cotton,
wheat, etc 1t is essential, he con-
tended, to increase the purchasing
power of the American farmer, or as
he put it: You can kiss the baby
good-by," referring to the recovery
program and prosperity.
Leaves Without Promise.
Apparently the Mississippi Senator
Is leaving Washington today without
having any promise from the admins
tration that it will put into effect the
provision of the Thomas amendment
authorizing the issue of $4,000 600, 900
OF Treasury notes as an inf1ationary
proposal
OF another provision, that permit
ting the cut in the gold content of the
dollar, thereby increasing the price of
gold and reducing the value of the
dollar, Senator Harrison spoke more
hopefully. But no statement was forth
coming yet that the President was
actually committed to this proceeding
Senator Harrison during his stay here
has been looking into the matter Of
Federal revenue from liquors and wines,
with the near approach of the repeal
Of the eighteenth amendment. He ex-
pressed the opinion that it may be
necessary to revise the internal revenue
laws and the tariff laws as they relate to
these alcoholic beverages. He insisted
that S500,000,000 should be raised from
internal revenue taxes on liquors and
vines; S200,000000 more revenue he
expected from the tax on beer, and the
tariff will bring in still more.
Higher Rate Possible.
He indicated that it might be neces-
sary to raise the internal revenue tax
rates on liquor to bring in this amount
of revenue, and that it would be neces-
sary also to amend the tariff laws. He
to imported wines from France and
other countries through excessive tax
alton.
The chairman of the Finance Com
mittee was asked if an attempt were
made to prevent return of the saloon
in this country, after prohibition re-
peal, by providing in the law that any
liquor bearing the Government internal
revenue stamp should not be sold for
consumption on the premises. 1t would
receive attention.
Certainly it would receive attention"
replied Senator Harrison. 1T might
be a very effective way Of preventing
the return of the saloon. I think it
would be legal. I am against the re-
turn of the saloon, and so is the Demo-
cratic party. We have pledged the
Democratic party to prevent the saloon
He indicated that if such bill were
introduced in the coming session OF
Congress it would have the consid-
Grafton of his committee.
The repeal amendment doing away
with national prohibition makes no eff
fort to have the Federal Government
prevent the saloon. The matter is left
to the States to control. Any state.
however. could legaliZe the saloon If it
desired to do So
Some opponents Of the saloon insist
Congress can deal with the matter ef
fectively through the stamp tax on
liquors. The manufacture and sale Of
LIQUOR will not be legal unless the liquor
pays a tax to the Government. The
tax laws could be amended. it is pointed
out. to provide that none Of the liquor
on which the tax has been paid shall
be sold for consumption on the premises.
Returning to the question Of infla-
ton Senator Harrison said: What
would do would be to try out some OF
these Treasury notes which the Thomas
amendment authorizes. They could be
put in circulation through the expendi-
lures for public works. etc"
Doubts Plans Use.
He admitted. however, that there was
grave doubt the administration would
adopt this plan of imitation.
Senator Harrison said he would have
the Government buy considerable
amounts of silver bullion and issue
silver certificates against them.
With respect to the content OF the
gold dollar, the Mississippi Senator said
it was apparent the value of the dollar
was still much too high. 1t could be
reduced by increasing the price of gold
This, he said, could be done by the
President through proclamation. He
said too, that an open market for
gold would have the effect of reducing
the value of the dollar.
Senator Harrison spoke hopefully of
a balanced Government budget and
referred to the prospective repeal of
some of the emergency taxes now i'm
posed when repeal of the eighteenth
amendment permits the Government
to raise revenue from alcoholic bever-
ages.
The beer tax, levied under the 80
beer act, Senator Harrison said. was
bringing in more revenue than had been
expected, probably S200,000,000 for the
year. 1t had been estimated that it
might bring in S125,000,000 to $780,
100000.