Evening star., 1934-01-07
Congress Lashed to Recovery n
Wagon in Present Session
Republicans and Democrats Fear Run.
a,cay, but Are afraid to Leap Due
to Presidents Popularity.

House Committee, in joint hearings on
the subject. However, there are strong
intimations that strenuous efforts will
be made to amend the House bill.
States May Get Credit.
Senator Harrison said the commit
tee would give very serious considera-
to giving to States a credit where the
States make no ga!lonaSe charge
against liquor
In the departmental report. Senator
Harrison pointed out, prepared at the
instance of President Roosevelt, it was
recommended that the tax levied en-
distilled spirits be $3.50 a gallon, So
cents OF which was to be given to the
States as a credit, provided no gallon
age tax was imposed on hard liquors.
The chairman of the Finance Com
'mittee, while not committing himself
to this plan, said he thought that the
departmental recommendation was q
fair way of raising revenue and that he
did not believe the So go gallonage tax
proposed would perpetuate bootleg
ging."
Senator Walsh of Massachusetts, an
other Democratic member OF the FL
nance Committee. expressed interest in
the suggested amendment to the House
bill and spoke fayorably of it. too.
Other amendments will BE- considered
by the Finance Committee it WeS said.
Some Of the members believe that the
tax Should be reduced lower than the
So a gallon rate contained in the House
bill. And Senator Walsh would like to
have the S5-a-barrel tax on beer re-
duced. so as to give the poor man q
glass Of beer at 5 cents"
1t may be mid-week before the liquor
tax bill can be reported to the Senate.
r. F. c. Measure Pressing.
The legislative program is still in the
making. But one measure must be put
through at an early date-a bill or
resolution extending the life of the Re-
construction Finance Corporation. 1t
is due to go out of existence January 81
unless Congress gives it a new lease on
life. Senator Fletcher of Florida, chair
man of the Banking and Currency
Committee. said yesterday he expected
to introduce tomorrow a resolution eX-
tending the period of operation of the
r. F. c.. Just how long the extension
would be he did not specify. indicating
it might be one, two or three years,
with a proviso giving the President au-
thority to terminate the corporation
Wnen cOnQltlOES warranted,
President Roosevelt Is expected to
week urging that the Government
guarantee the bonds issued by the Farm
Credit Administration to refnance farm
mortgages and the bonds issued by the
Home Loan Bank Administration. Both
have authority to issue up to $1,000
600, 900 of such bonds. a total of S4 00O.-
mn GOVarnfnant
isting law. guarantees the interest on
the bonds. Failure to guarantee the
principal has hampered the admins
tration of these measures of relief to
mortgaged farm and home owners, it
is said.
Fight Seen on Waterway Pact.
The House. having disposed of the
liquor tax bill IN jig time, has little to
do until the first of the appropriation
bills Is ready for its consideration,
which will be within day or two.
The treaty with Canada covering the
st. Lawrence waterway may be brought
before the Senate this week, perhaps
Monday, with indications of a sharp
contest, and some doubt as to whether
two-thirdS vote for ratification can
be mustered Both sides claim victory.
The treaty has the approval of the
President. Senator Copeland Of New
York. Democrat. an opponent of the
treaty. claims there are so votes against
1t in the Senate. But this Is discounted
by its supporters who challenge the
New Yorker to permit an immediate
vote.
A bill has been ordered reported to
the Senate by the Committee on Agri-
culture-the first farm relief measure
Of the session-authorizing s100 ,OOO, 900
crops loans.