Evening star., 1933-05-15
The Political Mill
By C. Gould Lincoln.

LAX, vi Ic-tIupiOy mcuL IaA, Can ~ Wuht
you will, Is to be tried out by the Fed
tration plans now revealed. OF course,
the Federal Government has levied sales
taxes for years upon individual indus
tries, taxes which have been budded
excise taxes. The administration in
order to 60 ahead with its plans for q
huge public works program. estimated
to cost $500 900 900, finds itself COM
PEELED to raise more revenue or to start
the printing presses to produce money,
greenbacks, to pay for these public
works. It has wisely chosen the lesser
of the two evils and has chosen taxa
tion. If the Government began turning
out millions Of paper dollars to pay OIL
its obligation, the administration
promise of sound money would be
found a mere scrap of paper, indeed.
The sales tax has been a political
| issue in the past. The politicians have
| been convinced that such tax was un-
popular. They might also have real
ized that any kind OF tax Is unpopu-
lar, and perhaps they were. But the
sales tax was given bad name in po-
| litical circles. Yet the tax Will fall
upon those who spend the most money,
not upon those who spend the least.
The sales tax ruined the political ca
reer, at least temporarily, Of one OF
| the ablest Democratic members OF the
House In the last Congress, former
Representative Charles Crisp Of Geor-
gia. Mr.. Crisp as acting chairman OF
the Democratic Ways and Means Com
mittee had the temerity to approve
and to bring into the House manu-
facturers' sales or excise tax in the
| hi n
the Governments budget He was con-
vinced that his find of tax was both
effective and fair The Democratic re-
volt against the tar bill in the House
is a matter of history. Mr.. Crisp.
who aspired to election to the Senate
| to fill vacancy caused by the death
Of the late Senator Harris Of Georgia,
was defeated by Senator Russell. then
Governor of the State Mr.. Crisp's
advocacy Of the manufacturers sales
tax was under attack.
| II President Roosevelt recommends q
general sales tax or excise tax on manu-
! facturers to raise the 1920, 900 600
needed to finance the public works pro-
gram, it Is likely to cause some un-
| comfortable sensations in that part OF
the congressional anatomy where the
political nerves are located. However
| the Democratic leaders insist that what
the President recommends for the pub
lie works program will go through. His
progressive supporters in the Senate
who have been strongly opposed to any
kind of a sales tax in the past. may
have to revise their ideas or else to
break away Since it is to be tied up
with pet plan of the progressiyes-
the public works program-they may,
some Of them, swallow the sales tax.
| Speaking of Excise" or sales taxes
! the Federal Government has through
| the enactment and operation Of the
new law permitting the manufacture
and sale Of 80 per cent beer started
tide of revenue rolling into the Treas
ury which will help to balance the
budget. If the eighteenth amendment
is finally repealed and it again becomes
legal in many of the States to manu-
facture other alcoholic beverages, In
cluding whisky and gin. the revenue
| of the Federal Government is due for
still greater increases. Jouett Shouse
president of the Association Against
the Prohibition Amendment. speaking
today at New Haven, had this to say
about the revenue possibilities under
repeal of national prohibition:
Repeal Of the eighteenth amendment
means the restoration of sources of ma
tional revenue that may easily aggre-
gate billion dollars a year. 1t does
not mean additional money taken from
! the pockets Of the American people
1t means simply the converting into
legitimate channels of business which
has been conducted on a gigantic scale
by the underworld and the revenues
! from which have been used to foster
I racketeering and crime of every charac-
ter. Morecver, II repeal is accomplished
now 1t will recul. in this re3toraticn al
a time when cur Federal Treasury is In
need Of additional revenue as at prac-
tically no other time in our modern
history"
The Glass bank reform bill, carrying
its proposal for the insurance of bank
deposits, will be reported to the Senate
today by Senator Carter Glass of Vir-
g.nia. The measure has stepped up
but there still remains a doubt as tc
whether it is to be sidetracked becaus.
OF failure of the administration to get
back of it. Indeed. there are some OF
the Democratic leaders who express the
belief that the measure may have tc
go over until next Winter and the
January session of the Congress One
thing seems certain. The opponents OF
the measure-many of them powerful
are not likely to acquiesce in the pas.
sage Of the new Glass bill without q
struggle. In the last Congress, when
the bank reform bill was brought for.
ward by the Senate Banking and Cur
rency Committee. the opposition cen.
tered on the provision permitting State
wide branch banking The opponent.
did not come forward openly to strike
at the provision of the bill disassociatine
national banks from their "afiiliates'
which do business in stocks and bends
and other commodities. But the
branch-banking feature was used tc
stir supporters of State banks and small
community banks in opposition to the
measure. Finally q compromise was
written into the bill which authorized
branch banking in States whose laws
permitted Statewide branch bankire
for State banks. And that compromise
is carried in the present Glass bill
| X y x x
The new point of attack is likely tc
be provision in the Glass bill for the
insurance of bank deposits This plan
| which has been carefully worked out
and Is supported by Senator Bulk.ey Of
Ohio, Democrat, regarded as both sound
and conservative in his views of busi-
ness. is to be the target of the oppo-
sition. 1t presents to them new talk
ing point. They are saying that several
of the States have tried insurance OF
guarantee Of bank deposits in the past
and that their efforts have been dismal
failures. From this they argue that
the Glass insurance of deposits plan i,
unsound and unworkab,e. They con-
tend that it will place premium on
bad banking. Well, without such pro-
vision, the banks of the country. gen.
orally speaking, haven't made a record
during recent years that is calculated
TO inspire great confidence of the public
in those institutions.
| \ X i
The guarantee Of deposits feature OF
the Glass bill has many ardent sup
DOrterS on CaDitol Hill a1tho,lOh IL has