The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-12-12
NATIONAL PRESS BLDG.

Ahead Seventy-fourth con-
gress, some of the
problems which President Roosevelt
must face have begun to take recogniz-
able shape. There are any number of
them, some great, some small, but that
one which stands out at this writing
| involves the alignment shown between
President Roosevelt and business in
| terests.
1t is very interesting situation.
Some weeks ago, the President prom
ised business breathing SPELL" No
one knew at that time how long this
breathing spelT' was to last nor did
anyone know exactly what it meant
beyond the Presidents verbal state
ment that his New Deal program was
virtually completed insofar as legisla-
| ton was concerned. Through a COM
bination of circumstances, the Presi-
dents promise of a breathing spell"
for business has not only failed to
placate business but at the same time
has led to determination on the part
| of business to go to bat with the
New Deal. All of the information /
have been able to gather indicates
distinct stiffening of resistance to
the New Deal by all types of business
Interests, either corporate of indi-
vidual.
There can be no doubt that a large
segment of business is emphatic in its
demand that New Deal spending be
reduced. That section Of the country's
economic life is determined to force
New Deal plans for spending back
within the boundaries of what bust
ness interests hold to be reasonable.
Having that determination, opponents
of New Deal spending have at once
something into which they can sink
their teeth, namely, the annual gov
eminent budget In the nature of
things, it and the Presidents annual
message on the state of the Union go
to congress in its first week of life.
That means the country will hear at
the very outset of the session some
thing of Mr. Roosevelt's plans for fur
ther cash OUTLAWS.
the next year. Consequently, the gov
eminent debt, now above S30OO0O0O,-
600, will be further increased. 1t means,
moreover, that before long there will
have to be additional taxes. These
increases in the tax levies probably
will not come before the forthcoming
session of congress but they cannot be
much longer delayed because retire
ment of the gigantic debt is pressing
even now.
The business viewpoint, of course,
naturally is concerned most of all
with potential tax Increases. Business
realizes that once the relief expendi-
lures are cut down, common sense will
demand revision of the tax structure
in order that the vast amount of gov
eminent bonds, notes and bills out
standing shall be liquidated in an or
derly basis. So, In concentrating at
this time on government spending, op-
ponents of the New Deal actually are
looking into the future and planning
as far as they can to hold down the
tax load they know they must carry
sooner or later. 1t Is quite obvious
that there will be no change in the
way of increased levies of taxes at the
1886 session of congress because, after
all, political parties do not raise tax
rates in an election year. But this
government is due to continue as
government for this nation and the
retirement of the S3O.OOO,OOO,OOO debt
cannot be lodged.
Under conditions that always have
prevailed, the political party in power
49, >. has always avoided
UNCUT tearing down bureauc-
Task racy in Washington in
an election year. The
civil lists of the government include
most of the local politicians on whom
the party in power must depend in its
campaign for reelection. To remove
many of them means naturally the loss
of power in the local communities and
no political party can hope to win by
tearing down its campaign machinery
in that manner.
Thus, Mr.. Roosevelts task appears
difficult. He will be seeking economy
in government OUTLAWS in an effort to
satisfy and reassure business which is
calling for economy. At the same time
he is under the necessity of holding
his political machine intact as the
vehicle upon which he will seek to
ride to reelection.
Besides this circumstance, there Is
the snarling and crashing of business
interests at the heels of the New Deal
because business leaders contend the
government is trying to run everything.
Although the NRA is dead, there re-
main such things as the social security
act which carries tax on business
pay rolls; the Guffey coal control law
with its taxing powers, and the steady
encroachment of government in bust
ness as is exemplified by the Tonnes
see Valley electric power project. 1t
is no secret that business interests
do not like any of these things and
business has its heavy guns loaded TO
wreck the man who, by introducing the
New Deal, must take responsibility for
the government policies to which bust
ness objects.
From the White House and from
Warm Springs, Ca, where the President
lately took his annual
lurns 20 Thanksgiving rest,
Economy there came announce
ments, both direct and
inspired, that the President was turn
ing to economy in the government out
lay. The information, of an official