The Ely miner., 1934-09-21
Treasury experts have gone to work
In preparation of a new tax bill. I

treasury experts nave gone TO WOrK
| In preparation of a new tax bill. I
reported TO you q
Prepare NeD month ago that this
Tax Bill could not be avoided.
The question now Is
how much revenue will the admins
| tration attempt to raise.
At the outset 1t must be remem-
bered that there are tax levies raising
approximately five hundred million
dollars annually due to terminate next
| year. This revenue must be replaced.
But there is much more money needed,
| because the program Of spending our
| way out Of the depression probably
| will be expanded during the coming
| winter
Secretary Morgenthau will have the
benefit of reports of his own experts
| and of a study under way by a special
| subcommittee of the house Of repre-
| sentatives. He also will have the bene-
| fit of a survey of the British taxing
system that is being made by group
| of tax authorities sent abroad espe-
| cially for that job.
But l gather from the discussions
heard around Washington that 1t Is
| not the question of size of tax rates
| on the scientific basis under considera-
| tion that is considered most impor-
| tant. Frankly, unbiased observers con-
| tend the significance of the present
tax study lies In a fact that will not
| be disclosed until later, namely,
| whether the administration is prepar-
| ing to balance the budget at an early
| date.
The resignation of Lewis w. Doug
| las as director of the budget links
straight into this question. Mr.. Doug
| las is variously reported as having
| insisted strongly for curtailment of re-
| covery expenditures and an early bal
! ance of outgo and income He left the
| job as gentleman and did not criti-
| cize his former chief Nevertheless,
| signs are numerous that Mr.. Roosevelt
| and Mr.. Douglas did not see eye to
eye in the matter Of easy release Of
cash In the manner that has been fol-
lowed since the recovery program got
| under way.
Some observers here contend on
what they insist is unimpeachable au-
thority that Mr.. Douglas was urging a
curtailment in expenditures and a
| sharp increase in taxation so that the
next federal budget would be in bal
| ance with the beginning of the fiscal
| year next July 1. That would repre-
sent a tremendous job. Mr. Douglas
| knows what the problem is and he
| also knows, as big business man,
how necessary it is to assure holders
| Of federal bonds that their funds are
safe. 1t is to be assumed from all Of
| the straws which the wind has blown
| that the break came on that question.
| If that assumption be correct, wise
acres are saying, it means that the
next tax bill win be held to the
| minimum.
Although it may be bit ghoulish, 1t
| is a fact that speculation has begun
respecting appoint
Supreme COurtments to the Su-
Speculation preme court of the
United States. At
present all of the nine justices are in
| good health despite their advanced
age. Five Of them are in their seven
ties and only one Is younger than
sixty. The appointment spectators,
| therefore, think that President Roose-
velt will be called upon in the course
| of the next year to name another
justice.
The circumstance seems to have de-
veloped as psychological result and
as an aftermath Of the death Of
Speaker Henry T. Rainey of the house
of representatives. Mr.. Rainey's death,
of course, has political significance and
once the spectators were started
they carried on.
The present assumption is that
Senator Joe T. Robinson of Arkansas,
the Democratic leader. will be named
to the Supreme court when there is a
vacancy. 1t would fulfill Senator Rob-
inson's ambition and 1t would be q
compliment to him for the yeoman
service he has performed for the new
deal. But the elevation of Senator
Robinson would leave in the senate
something of a battle for leadership
there, and that Is the thing about
which the politicians at the moment
are giving some thought. The majority
leader In the senate or the house nee
essarily must be something of a "yes"
man. Without detracting from Senator
Robinson's ability, 1t is generally
known that he has acquiesced in all
of the new deal proposals without
having In his own mind a conviction
that they were the best pieces of legls-
lation that could be drafted; so if
and when he is elevated to the Su-
preme court there will be a scramble
among some of the senators who crave
the honor of leadership and who also
desire for political purposes to demon
strate their fealty to the new deal.
The names mentioned In this con-
nection are Senator Harrison of Missis-
sippi, Senator Byrnes of South Caro-
lima, and Senator Wagner of New
York. OF course, 1t is not intended to
eliminate other candidates, but to re-
port those whose names now figure in
the guessing.
@. Western Newspaper Union.
----
p.orun~:, t.o, sc HCoIou~U