Evening star., 1933-01-17
House Leader Says Expenses
Must Be Met by Rigid Econ
omy and New Policies.
TELLS BOARD OF TRADE
STATE GRANTS MUST END
Democrat Says Next Congress Will
Pass Beer Bill if President Hoo
yer Vetoes Present Measure.

dllQ unprecedented CoIlOiIiUllS, Rcp1S-
sentative Henry T. Rainey of Illinois,
told members of the Washington Board
of Trade at their January meeting last
night at the Mayfower Hotel
THE taxpayers of the country will
not stand for increased taxation" he
declared in outlining methods by which
he predicted the budget would be
balanced
The Democratic floor leader of the
House, who is leading contender for
the speakership and member of the
powerful Ways and Means Committee,
said the United States must adopt a
program of shorter hours of work for
labor, coupled with a restriction of pro-
duction, If the downward spiral of busi-
ness is to be halted.
Hits Federal Aid.
Discussing projected Government
economies. the veteran House member
struck out at policies which have pre-
vailed in the past under which the
Federal Government granted huge sums
to States for road building and other
capital investments, which he described
as form of double taxation" on the
taxpayers of the States.
Reciprocal tariffs, proposed in some
quarters as a means of revival of inter
national trade, were described by Mr..
Rainey as impossible of accomplish
ment, due to the form of existing
treaties with about Al foreign countries
Touching upon matters of particular
local import, the speaker declared the
program Of economies now under con-
sideration must include the elimination
of all Government agencies which are
not essential to the life of the Nation. y
will Curtail Projects.
For this reason and due also to the
staggering" amount of the increasing
deficit in the Federal budget, Mr.
Rainey said that while the Government
building program in Washington, now
under way, would be completed, there
will be no more projects started"
Currency imitation, the Democratic
leader asserted, is "the silliest" of all
proposals made so far for bringing
about economic recovery.
Mr.. Rainey saw no help from the
buy American" movement. in any pro-
gram designed to correct fundamental
ills of the United States.
The buy American movement" he
said. 'is patriotic, emotion program.
good SO far as 1t goes, but as a proposal
for solution of our problems it can do
no more than the falling of raindrop
in the ocean can have an effect to
raise the level of the tides" ;.
Mr.. Rainey predicted that a special
session of the new Congress, meeting
after March 4. would pass the beer bill,
should President Hoover veto it, and
that early consideration by the new
Congress would be given to a proposal
for repeal Of the eighteenth amend
ment.
Minimizes Veto's Effects.
Mr. Rainey declared it would not
make much difference if President
Hoover vetoes the beer bill. since the
Democratic Congress coming in after
March would quickly pass new and
perhaps a better BILL" estimated to
produce SIPS 900, 900 in Federal revenue
He said if he were elected Speaker,
he would recognize, on the first day
there was suspension of the House
rules, someone who would present bill
calling for repeal of the eighteenth
amendment, and which would call for
ratification by special conventions in
the States
In the same connection, he declared
that the prohibition laws, local, State
and Federal, had resulted In loss of
about $4,000, 900, 900 in tax revenues.
II am in favor of having the Govern
ment take this revenue instead of the
bootleggers," he said.
In opening his address, Mr. Rainey
drew a gloomy picture of present con-
ditions, declaring that the United
States in the past IL months had taken
greater steps towards communism
than any other country except Russia.
I'VE are plunging along towards COM
munism," he said, land soon will be
there unless something is done and
done quickly"
Sees Debt Increase.
An attempt to halt the downward
trend of business was made in the
establishment of the Reconstruction
Finance Corporation, but the billions
of dollars being loaned by this agency,
he said. is serving to increase the in
debtedness of the country. while the
Federal budget deficit continues to grow
at the rate now of $1,000 per minute.
This situation, of increasing indebted
ness and rising deficit, cannot last
much longer, he said. II the trend Of
business continues downward. he said,
the Government eventually would have
to take over the operation of banks,
railroads, insurance companies and
other institutions borrowing from the
finance corporation. In effect, he de-
clared this would be communism, but
not one which would operate success
fully, since private interests still would
control coal fields, water power sites,
the forests and other sources of wealth
needed by the Government.
He blamed most of current troubles
on the tremendous extent of mechaniza-
ton and speeding up of industry beyond
the power of consumption, with more
and more labor being displaced by
machines.
Buying power must be increased by
increasing employment through adop-
tion of programs of shorter hours of
work, Staggered" work schedules, and.
IF possible. an increase in wages" :"
while at the same time production is
restricted, he argued.
Inaugural Plans Outlined.
Huston Thompson, chairman of the
Arrangements Committee of the In
augural Committee, reported there had
been already an unprecedented demand
for tickets for the inaugural.
He said the first order for grand
stand seats for the inaugural procession
was for 400 tickets for Texas residents.
Other first large orders included call
for $50 from Pittsburgh and like
number from Chicago. One Govern
ment department here, he said. had re-
served 1000 tickets.
The number of seats available, he
said, would be double that for the pre-
ceding inaugural and had been reduced
in price, from So 10 $40 to d new scale
of from 50 to 81.
Present plans call for gala program,
with an inaugural ball, fireworks dis
play on the Monument grounds, an air