The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-04-06

with the treasury supplying the ini-
tiation capital to the extent of $140,.
100000.
Here, again, Is an emergency meas
ure. 1t Is pointed out, however. that
the project Is do
Banking for signed for perma-
F,d,.trv nency. It Is, there
fore, move by
which the federal government, through
a step-child. would be put into the
business of banking for industry. and,
OF course, once that happens, the sys-
tenn will hang on and on. 1t will hold
so much commercial paper, represent
ing loans, that there really will be no
time when II can quit and retire from
business.
was talking with a rather well
known senator about the plan, the
other day, and he voiced his private
objections most vigorously. He sug-
gested that there was grave danger
Of the Industrial loan system being
strongly Influenced by politics and
that this condition surely would lead
to the making Of loans improperly
secured, loans that no sound bank
would dare make.
II will tell you just how far that
thing could CO." he added. st could
easily reach the point where, If a
business man wanted to borrow money,
he would have to go into the bank
on the arm of an Office holder"
And this senator is a Democrat, a
member of the senate for years! The
incident Is related here, however, be-
cause II shows the line of cleavage
that has developed. 1t demonstrates,
indeed, that no longer Is legislation
being put through congress just be-
cause the administration wants it.
Another piece Of legislation that Is
going to have rough shedding Is the
Roosevelt tariff adjustment proposal
1t says on the face of the bill that 1t Is
emergency legislation. Down in the
text, however, there Is provision
that any of the international tariff
agreements reached under provisions
of the bill may be renewed and that
they will continue in force as long as
one nation or the other, parties to the
accord, do not give notice of cancel
lation. The opposition holds this to
be a proposal for permanent legisla-
ton under the guise of emergency
plans.
Some of the few Republicans left In
the senate and house have been child
ing the Democratic leaders about the
tariff proposals of the administration
because they would delegate to the
President and the tariff commission
more authority to revise rates upward
or downward than now exists. The
Republicans are recalling to their
Democratic friends how the Democrats
fought against this idea when it was
proposed by President Coolidge and by
President Hoover, although neither of
those Presidents included interna-
tional agreements with the rate re-
vision idea. Quite a humorous situa-
ton has developed as a result.
Officials of the Department of Agri-
culture admit little about reported
criticism they re-
Farmers ceive. They con-
Nb;ect tend that criticism is
to be expected and
that, under the AAA plans being
nodded by Administrator Davis, the
organization and rules are to be kept
flexible. 1 understand, however, that
there is quite a bit of objection reach
ing the department about the neces-
sity for farmers allowing government
agents to examine their records. The
reports l get are to the effect that
since most of the facts have to be
gathered by county representatives of
the Washington government, many
farmers do not like the idea of neigh
bors knowing all about their affairs.
1 have inquired around to find out
whether there is any way that such
condition can be corrected and have
found no answer, except the state
ments of the high officials who argue
that there is little examination neces-
sary. The condition seems to be one
that must be expected if the concerted
effort contemplated by the AAA prin-
ciples of crop control are to be effec-
tive.
The situation is one that obviously
and naturally develops as the govern
ment wades further and further into
private business. Most persons recall
the circumstances that came with the
Inauguration of the income tax as a
system of raising federal revenues.
Business men objected vigorously to
granting government agents the right
to dig into their books and records,
but their fight was to no avail. The
government was going to collect the
tax; it was going to be certain that it
obtained all that was coming to it I'M
der the law, and there has been no
change in that program. Every year,
the internal revenue agents go through
the book records, and if they don't
find the information there, they quiz
the taxpayer. 1t is only logical to as
sumo the same course is going to be
followed respecting administration of
the AAA affairs.
Further than that, the income tax
authorities in Washington long have
insisted that corporation books must
be kept after the plans worked out by
the bureau of internal revenue, and