Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-06-01
THE NATIONAL
GOVERNMENT
BY CONG. JOHN PAUL KvALE

tion measure, passed it with a whoop
and sent it to the Senate, thereby
finishing the lions share of the tasks
which have been scheduled for COM
pletion in this session. Leaders now
plan to push through bill officially
and formally declaring by law what
has been unofficially recognized since
March, the definite abandonment of
the gold standard. A railroad bill
is also upon the program, but faces
a rather uncertain future. In addi-
ton, a few other minor-in proper
ton at leaSt-meaSures may receive
approval; but the remainder of the
session will for the most part be de-
voted to reaching agreements in con-
ference on bills that have passed and
are pending.
The ndustry-wOrks-tax bill, de-
scribed briefly in this column last
week, went through pretty much ac-
cording to schedule. The tax ques-
tion rose rapidly to prominence, as
predicted, and advocates of sales
tax made genuine threat with their
motion to recommit the bill by in
GLIDING some attractive provisions for
repeal of Objectionable taxes. Com
ing just before the final vote. the
writer and others had to employ par
liamentary devices to voice objections
before that stage was reached. When
the vote was actually cast, however,
it was defeated by strong majority,
and the bill as it goes to the Senate
therefore contains the income and
nuisance tax increases and continu-
ances for another year.
Sadly. the bill proposes sharp in
creases on the income of wage and
salary earners with modest incomes,
while making scarcely any change in
the rate of taxation on those of large
wealth. The committee was forced
to make two real concessions, the
first to modify existing law which has
been responsible for the fact that the
tremendously wealthy individuals and
eXemplified by the
House of Morgan which is being in
vestigated by Senate committee
escape the payment of any tax at all.
The committee also changed the pro-
vision it had slipped in for the re-
tentiOn of the consumers tax on cleo
trio light and power, despite the fact
that the House had gone strongly on
record for a change to direct tax
passed.
The administration faced its crit
ical fight when the rule-the usual
gag-was adopted. Those who op-
posed the rule were within a hairs
breadth of victory, and only an i'm
passioned appeal to partisanship by
the majority leader, coupled with
force applied to individual members
to change their votes after they had
already been cast. saved the day for
the Democrat leaders. Observers are
of the opinion that such methods will
hereafter not be attempted
1t is fact, nevertheless, that the
most important bill in long, long
time-some even say it is the most
important bill that has been before
any Congress rammed through
with only a few hours debate, and
even that debate meant but little be-
cause of the fact that amendments
were not permitted, and the actual
reading of the bill consumed but a
few minutes. Directing to many of
its features, and resenting the pro-
cedure, the reaction was different
w tnn
under the treatment and possessing
violent distaste for some of the bills
provisions, voted against it on the
final vote. Others, hopeful that the
Senate would take time to give the
bill at least a pretense of study and
eliminating some of
the Objectionable parts, and favoring
the cOurages and comprehensive plan
for recovery, voted for it.
Again now. as last week, it can be
safely stated that the Senate will
have more than little to say, both
as to the first part of the bill which
provides for the creation of an indus
trial dictator and for the modification
of the antitrust laws through estab-
lishment of trade associations, and
also as to the tax features. The
House committee made no effort to
increase the surtaXes on great wealth,
either individual or corporate, except
for its hasty last-minute amendment
to change the provisions regarding
capital losses which Morgan and his
partners had used so effectively in
the last three years. 1t made no eff
fort to reach the tremendous corpor-
ate surplus profits which are being
amassed, and which present tax law
does not reach. 1t made no effort to
lift the taxes on inheritances and
gifts. All these will have their full
share of consideration i'm the Senate.
The sales tax propagandists were
out in full force during these days
that the bill has been in committee
and in the House. Hearst, through
his large string of dailies, has been
particularly noisy and abusive in his
advocacy of sales tax and of the
permanent abandonment of the in
come tax. He is unique in that one
respect, namely, that he brings into
the open the real purpose of those
who want the sales tax adopted,
whereas most of the group take pains
RI conceal If