The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-02-03
INFLATIONISTS
UNITE AGAINST
NEW TAXATION
Farm and Bonus BIoCs Join
in Program to Issue
$5,249, 900, 900.
AWAIT ROOSEVELT PLAN
Administration Goes Ahead
With Measures to
Produce Revenue.

BIZ United Prcss
WASHINGTON. Feb. 3.-Infla-
tionists of both House and Senate
rallied today to the fight for con-
trolled currency expansion to stave
of the need for new taxes.
Farm and bonus inflationary blocs
united-tacitly, at least-on a pro-
gram looking toward issuance of
some $5,249 100000 in new currency.
OF this amount, $2,249,000,OOO would
be used to finance bonus payments
to veterans, and $4,000 100000 for
the Frazier-Lemke farm mortgage
refinancing bill.
The big intl2 tionary drive Is eX-
pected to await Introduction of the
Administration new taxation pro-
gram, expected tbs week.
New Tax Bill Studied
Justice and Treasury Department
officials have been working on tax
measures which might total almost
$1,000 100000. The new farm bill,
made necessary by invalidation of
AAA. would account for $500,000 900
of the taxes: bonus amortization
expense for a year would total about
$3.50, 100000; and the remainder
would come in an Administration
effort, regarded as likely, to recover
$200,000000 in AAA processing taxes
through retroactive law.
Strategy of the bonus imitation
bloc headed by Rep. Wright Pat
man 3D. Tex called for a fight
on the direct issue of currency ex-
pansion rather than an attempt to
attach an inflationary rider to the
$2,2490Ct 900 bonus appropriation
The Patman group decided TO
make no effort calculated to delay
the appropriation bill. To do so
would make them vulnerable to the
charge that their inflationary at
tempts were delaying bonus pay
ments to veterans,
I'VE Know Our Friends
Indications were that the Frazier
Lemke bill would be the first infla-
tionary issue to come up for a show
down fight. The petition for an i'm
mediate vote on the measure lacks
only three of the 218 signatures
needed.
Leaders of both farm and bonus
inflationary blocs disclaimed an
outright agreement to combine
their strength. 1t was inferred.
however. that the two groups would
fight side by side for currency in
flation. Senator Elmer D. Thomas
Cd, Okla.). leader of Senate in
flationary forces, summed up the
situation with the significant state
ment:
1--WE know who our friends are
and what our strength is"
Rep. Patman said his group has
not yet joined forces with the Fra
zier-Lemke supporters. He in
ferred, however, that the currency
eXpansionists would fight side by
side with the farm mortgage advo-
Gates in the fight for issuance of
new greenbacks.
Administration leaders in both
houses looked forward anxiously to
President RooSevelt'S tax program.
No Hint of Recommendations
No indication has come from the
Administration as to what form the
new tax recommendations may take
Most probable sources of new reve :
nue., however, are broadening of Tao
income tax base, increased inher-
itance levies and a manufacturers
sales tax.
Senator Thomas was ready TO lead
a Senate drive for expansion in lieu
of election-year taxes.
In deciding not to press their
drive for payment of the bonus in
greenbacks, inflationists conceded
Administration leaders a temporary
victory.
Secretary of the Treasury Henry
Morgenthau Jr. has made no tax
suggestions. but has said the bonus
and farm relief would be financed
through orthodox methods new
taxes or Federal borrowing, or
both.
Morgenthau is expected to APP
pear before the House Ways and
Means Committee this week, at his
own suggestion. to discuss taxation.
His appearance is likely to coincide
with announcement of the Admins
tration tax program.
kH0T0p TDIINL CNnI