Evening star., 1934-10-13

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The trouble started when DR.. Viner
and his freshman team of college
professors were called in last Summer
TO devise an entirely new Federal tax
structure. They want reform in big
plans for reform.
Would Delay Changes.
Mr.. Oliphant believes it would be
better TO wait year or SO before pro-
posing any drastic changes, because
things are SO unsettled now.
The brain trusters lately hdue
decGmped (du except Dr.. VinerJ.
Their reports haze been handed
upstairs to Mr.. Ohphant, who is
sitting upon them. And lUhen Mr..
Oliphant sits on anything, it usual
~ is fairly tDell tldttened out. His
bulk looms Just as large in the
inner Treasury scene as the money
Uaults themselves His influence
is almost equal to that OF Mr..
Morgenthau and possibly SurpdSSes
it occasionally Mr.. Morgenthau
usually tollows his ddpice. (Oh-
phGnt is the man credited on the
inside NTH hdUing put ouer the
Siluer policy.
This is the reason why you have
been reading so many conflicting re-
ports about what the Government is
! going to do on taxes. 1t explains why
some have been predicting tax revi-
sion in January, and others are deny
| ing it.
On the basis of past experience, Mr.
Oliphant undoubtedly will win,i hands
down, and there will be no tax re-
vision in January.
The brain trusters will not let a
peep out about what their feform
recommendations we're. DR.. Viner
warned them, at the start, to run il
they saw a newsman coming. Go as
| far as you like in writing your reports, -
Viner told them confldentially. If ]
do not agree, I will send them back.
but if you still hold your view, I'll
send up your report unchanged" That
was encouraging.
Some Cut Loose.
Some of the boys did cut loose IN
their reports and even went outside
the field of taxation to suggest changes
in banking and other practices. For
instance, they could see no sense In
holding heavy reserves against time
deposits.
Viner also told the boys that
he did not kno1o Uhdt Uould
ultimately happen to their reports,
adding significantly: you know
the ldUyers hare a lot OF tHtlu-
ence around here"
The need for tax reform Is vital.
Our system is nonSensical hodge
podge and crazy quilt of conflicts be-
tween the Federal, State and local au-
thorities. 1t is true there are literally
thousands Of taxing bodies and many
instances Of duplication. In fact, the
only tax which Uncle Sam reserves
exclusively is the tax on imports.
Breakdown of many State revenue
, systems during the depression has
heightened interest in the problem
Even more serious factors are the
rising deficit and the flight of capital
abroad.
The United States is the only major
power which has not modernized its
taxing system. One Shrewd observer
has commented that q year Of Brit
aims taxes in the United States would
just about wipe out our deficit.
A governmental expert who has just
returned from two months in Europe
is highly indignant at the news
European newspapers are printing
about the United States He reports
that continental papers are filled with
blood yarns about our
Dillingers, Hauptmanns and the more
lurid phases of the munitions inquiry.
Serious news Is played down or dis
missed with few paragraphs. Even
well-informed business men knew lit
tie about the New Deal. They all
knew about Robbie" but few had
heard much of Gen. johnson.
Bullitt Much Shadowed.
Word has reached State Depart
ment circles that Bill Bullitt is COM
Ing home to escape the OGPU Soviet
secret political police. He is one of the
most shadowed men in Moscow and
he doesn't like 1t. The Russions say
it's for his protection. He privately
says "fooey."
An OGPU car is always stationed
outside the American Embassy.
Wherever Bullitt goes, the car goes
too. If Bullitt and his attaches go
walking, the OGPU men appear from
within the car and follow, keeping a
few PAGES behind. When Bill gazes
at the sky, they gaze too. When he
goes rowing, they, too. take to the
water.
The process of shifting Russell
Amory out OF the Commerce De-
pGrtment has nlOved another step,
NTH his transfer from foreign
and domestic commerce to the
Shipping Board Bureau Amory,
in inner departmental circles, is
held to be the man behind the
Senate fight on Willard Thorpe,
the man Roosevelt Danted for chief
OF the bureau. He, so the story
goes, tipped of Senator Stephens
that Thorpe is a Republican.
Americans, who were said during
prohibition to have become "a Nation
of hard-hquor drinkers are still that
way, q check-up Of liquor import
figures indicates. Twice as much dis
titled liquor Is coming in as wines.
From December, 1893, to September,
1884, there were shipped here Of hard
liquors q total of 9,2ss,117 gallons,
as against wine imports Of 5,535,791.
Duties collected on distilled liquors
total S24,668, ,643, while duties on
wines are but sS151,s67.