The midland journal. (Rising Sun, Md.) 1885-1947, 1934-12-14

Fight burden of the coun-
Added Taxes try through the ac-
ton of the next ses-
sion. Although the White House has
made no public pronouncement, 1t Is
the understanding that the leaders in
the senate and the house who have
taken unequivocal positions against
tax increase In 1885 were rejecting the
view they had obtained from President
Roosevelt In addition to their own con-
viction that this is bad time to in
crease the levies which individuals and
business interests must pay for the
upkeep of the government.
During the current weeks there has
developed some indication. if, indeed,
it is not an assurance, that there will
be curtailment of federal expenditures.
Just how this is going to be accom-
plished is not yet clear but 1t can be
stated on highest authority that cur
tailment of the outgo from the treas
ury is expected to be accomplished. In
making that statement, l think ought
to add that the curtailment Is contem-
plated with respect to emergency agen-
cies and does not include any of the
various new proposals from segments
of house or senate membership involv-
ing additional heavy OUTLAWS. AS an
example of this type of expenditure l
refer to the proposal for immediate
payment of the soldiers bonus. That
there is a strong demand for this ac-
ton, there can be no doubt. Yet on
the other hand there is bitter opposi-
ton both In congress and among adj
ministration leaders to the program
that would entail payment of some
thing like two billion dollars to the
former soldiers, sailors and marines of
World war days.
The question of taxation always is
of an explosive character. Hence, the
urge on the part of some of the new
dealers for an increase in taxation so
that emergency spending might be
made to appear more in line with gov
eminent income has precipitated an is
sue very quickly. The proposition had
hardly begun to gain momentum when
Senator Robinson of Arkansas, the
Democratic floor leader of the senate,
and Senator Harrison of Mississippi.
chairman of the senate committee on
finance, both were called to Warm
Springs, Ca, for a conference with
Mr.. Roosevelt. 1t was said at that con-
ference that taxation was not the only
thing discussed but. nevertheless, both
leaders came away from the temporary
White House with the announcement
that there would be no tax boost in
the 1885 session of congress.
simultaneously Representative Hill,
Democrat Of Washington, chairman of
a subcommittee of the house ways and
means committee, made known his op-
position to tax boost. Mr.. Hills COM
mittee has devoted its attention to a
survey of tax rates and revenue re-
Quirements and has reached the con-
clusiOn that to increase the levies now
would be to retard recovery as result
of additional imposts on business. The
Washington representative feels that
the present tax structure will function
properly and provide sufficient revenue
just as soon as there is return of
something approaching normal com
mercial activity. He thinks there might
be some simplification of the laws ap-
plying to the various forms of federal
taxation but he considers them ade-
quate as revenue producers If and
when there is a normal volume of bust
ness.
In this connection it seems advisable
to recall that Secretary Morgenthau
of the Treasury sent freshman team
of brain trusters to England last sum-
fner to study the British tax system
While this committees findings and
recommendations to the secretary have
not been made public, insiders tell me
that the results of that investigation
added very little to the sum total of
knowledge concerning our own prob
lem.
ment's financial condition, gave IL as
his opinion that I'VE
NOt 30 b0d are not in such bad
Financially shape now" His
statement referred
to an approximate balance between re-
ceipts and what the administration
calls ordinary expenditures. These ex-
penditures go for support of the regu-
lar government establishment and no
part of them is used in maintenance
of recovery operations such as the Ag-
ricultural Adjustment administration,
the Public Works administration or the
Reconstruction Finance corporation.
The funds used by these alphabetical
agencies come from the sale of bonds.
1t is borrowed money and sometime
must be paid back. Mr.. Hill assumed
these repayments were not necessary
to be considered at this time. He was
concerned solely with having the or
binary expenses covered by the regu-
lar annual receipts.