The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-14
Phone-RIley 1881
TUESDAY. MARCH u. lgga
BANKS-BUDGET-BEER

Beer for revenue. Beer has ceased to be a pro-
hibton issue. We went far beyond that when con-
gress sent an outright repeal amendment to the
states, and when the states began their race to be
the first to ratify
But the budget deficit remains We must cut
expenses. We must increase income.
President Roosevelt intends to do both. His
emergency economy plan has passed the house
Monday in the senate test vote favorable to
the President by three-to- one majority, with final
passage expected today or Wednesday.
The estimated saving is $66O0OOOOO About
S4000O0OOO is to be taken of veteran appropra-
tions without, however cutting a penny from the
allowances for men injured in the service.
Another large slice is to be taken out of federal
pay rolls, which not high at BEST but which
must be subjected to the budget need.
other economies will come later. In addition
to smaller savings from government reorganization,
several special subsidies can be cut or eliminated
altogether.
But even that will not balance the budget More
revenue is necessary In time doubtless our customs
revenues will increase again with lowering of
the tariff wall and revival Of world trade. But
that can not be counted on this year.
Income taxes in the higher brackets and inheri-
lance taxes can be raised but the returns are meager
during "a depression in which virtually all private
incomes shrink. Local and state taxes are now so
high that when added to the federal levy the tax
payer in many communities is unable to carry
the load.
Meanwhile the President proposes to increase
government Indebtedness to help banks and to pro-
mote public works for employment. That program
is essential. 1t is not waste 1t is an intelligent
investment, But it costs money.
These are some Of the reasons which forced the
President to pause in the midst Of his fight against
banking chaos to recommend to congress inmedi-
ate modification of the Vostead law go.
ITO legalize the manufacture and sale of beer
and other beverages of such alcoholic content as
is permissible under the Constitution and to pro-
vide through the manufacture and sale by substan-
tial taxes a proper and much-needed revenue for
the government"
Thus the beer measure is part Of the fight to
put our financial house in order. Banks, budget
bonds beer-they are all tied together in the larger
problem.
There seems to be no doubt that congress will
act on beer, as requested by Mr.. Roosevelt During
the winter session. the house passed beer bill
Though action by the senate was prevented by dry
obstruction, facilitated by the rush of business in
the closing days of the lame duck session. two
ate committees reported bill favorably
Enactment by this congress is much easier, Of
course, because of Democratic control and because
the banking moratoria persuaded congress that
financial chaos is no joke.
The amount of revenue possible from beer
tax is difficult to estimate. 1t depends in part
on how fast the normally beer drinking public gives
up its prohibition gin and whisky. There also is
some question as to the most productive tax base,
Would $40 a barrel raise the retail price and
reduce total consumption and total revenue? The
familiar $6-a-barrel tax would return from $125-
100000 to S2OOOO0OO0 revenue year. Perhaps a
figure between $40 and Sc would be worth trying.
In any event not too much time should be lost
arguing the matter. Those who know anything
about the state of the federal budget will agree
with the concluding sentence in the Presidents
brief message to congress:
Il deem action at this time to be of the highest
Importance"