The Omaha guide., 1933-07-22


One encouraging sign is that the
extraordinary measures, while they APP
propriate definite amounts, do not specify
that they be entirely spent. In the $4,000
100000 public works bill, for example, it
is doubtful if more than a third Of it can
be used within a year. By the end of that
TIN 1t may not be necessary to use more.
The old practice Of politicians spending
everything they can get hold of may not
apply here as administration Of this and
other bills is supposed to be in the hands
OF persons who have few or no political
obligations.
Also encouraging is the outlook
for tax revenues. For the first time since
depression began the Governments inter-
nal revenue collections are exceeding
those for the same period a year before.
Main reasons for this are the beer and
gasoline taxes, which have been roaring
successes. These two taxes, with cigarette
and income taxes, were responsible for
81 per cent of all internal revenue during
May. Income tax collections, however,
have gone down; decrease during the
current fiscal year has been 1926, 900, 900
in comparison to the last. This loss was
more than offset by increases Of revenue
of $313,50O 900 from the beer tax, togeth-
er with rs other new taxes and five sets
OF higher rates on old taxes. More and
higher taxes is the order of the day.
Curiously enough, both the "com-
mon man" and the financier favor repeal
of the capital gains and losses provision
of the income tax laW-but for definitely
different reasons Many more millions
can be collected through correction of
technicalities and loopholes in the law.
Also to be considered is the possibility of
hard liquor and wine taxes-the chances
are that the eighteenth amendment will
be only a memory within a year, and re-
from this source will be large.
The World Economic Conference
hasn't collapsed, but it's looking pretty
lottery. It is, basically, a attempt to re-
vive iternationalism in a world which is
now predominately nationalistic. Bones
of contention have appeared at every
turn: Most important is the fight be-
tween France and the United States over
dollar sterilization. France wants it, to
save her franc from slipping off the gold
standard. U. S. is against it; our internal
recovery program is based principally on
one kind or another of initiation, which is
definitely opposed to gold standard prin-
ciples. The American delegation has lost
caste, due to the fact that individual
members have been making statements
xrLs,1 of&oo oo~f1iof E11rono0n nhcoryorc
wonder, and justly, why they don't 60 in
to more huddles among themselves. Sc
cretary HulPs trade resolution, main fea-
ture Of which is reduction of trade bar
riers, met a cool response. Only re-
solutions on which any real progress have
been made deal with matters of a minor
nature.
The possibility of political roper
cussionsat home from the Conference is
imminent. Secretary Hull is apparently
not receiving the Presidential support
anticipated; his assistant, Raymond Mol
ey, has been stealing his thunder. Mr..
Moley's rise in politics is nothing short of
amazing. AS William Allen White wrote:
The din he is causing in London sounds
like 'Moley, Moley, Moley, Lord God AL
mighty" The Importance Of his going to
London is explained by the fact that he is
an isolationist in policy, while Mr.. Hull is
an internationalist.
During May, industrial production
achieved the largest increase recorded by
the Federal Reserve Boards index in IA
years. Reports in early June show contin-
uance Of the advance. Light industries,
such as shoes and textiles, are moving to
new highes. Heavy industries-steel, lum-
Der, automobiles, etc.-are participating
to a lesser extent in the march. Employ
ment and wage statistics grow more en-
couraging, and there has been no weak
oninn In tho connmoditu nrico rico