Evening star., 1936-01-30
Cummings Favors More
Levies, but Patman and
Thomas Call for Issue of
New Currency.
CONGRESS WILL GET
NEW PROGRAM SOON
Byrns Reveals Morgenthau Is
Ready to Discuss Needs of
Treasury as Attorney Generals
Staff Drafts Proposals to Be
Offered in Week.
BACKGROUND

BACKGROUND
In budget address to Congress
President Roosevelt said he saW no
need for additional tares this year.
Since then inUaltdotton OF the
A. A. A. has left Federal Co..
ernnlent with potential erpendi-
tures OF $500, ,000, 900 for eristing
farm contracts and for new pro-
gram OF crop CONTROL In addition,
congressional decision to pay of
noiU the bonus obligation OF 1916
calls for about s2.250 900, 900 more.
InfationiSts in both House and
Senate are agitating for financing
OF both obligations through print
ing OF extra currency.
BY the Associated Press.
Imitation or taxes?"-a question
high in many legislators minds-was
being asked today in connection with
the A. A. A. substitute and an appro-
priation to pay the soldiers bonus.
Taxes" answered Attorney General
Cummings in SO far as the new farm
plan is concerned. A program to pro-
vide funds will be sent to Congress
within week. The cost for one year
OF the soil conservation subsidy plan
has been estimated at $4,000 900.
New currency" urged Represent.
ative Patman, Democrat. of Texas in
the wake of President Roosevelts re-
quest for s2,2490 100000 to pay the
bonus. He promised a battle" TO
provide the cash by issuing currency
against gold now idle in the Treasury,
instead of borrowing.
Farm Problem Called Monetary"
The Senate Agriculture Committee
showing the subsidy-soil conservation
bill toward debate. sent along state
ment that the agricultural problem
is very largely monetary one"
Democratic leaders discounted the
significance of this, emphasizing that
the statement was not a part Of the
measure itself.
OF the presidential request for bonus
funds, Speaker Byrns said at lis press
conference:
IF they need the money Congress
will have to appropriate it. II they
need taxes Congress will have to levy
them-ultimately.
He~decided not to read the appro-
priation request to the House, because
he considered it nothing more than
the usual letter.
Admits He Regrets Taxing.
Wouldn't you. personally. rather
not see a tax bill this session." he
was asked
Who is it that wouldnt?" the
Speaker shot back.
Would you say that politics has
something to do with Congressional
reluctance on taxes?"
If I said of course not would
you believe me?" the Speaker
chuckled.
Byrns said Secretary Morgenthau
told him only last night he would not
60 to the Capitol to discuss taxes un-
less invited. but that he was ready
and had some plans.
Chairman Doughton Of the Ways
and Means Committee has given him
no indication Morgenthau might be
asked to appear.
Retroactive Taxing Possible.
Attorney General Cummings told
newsman at his press conference that
the question of re-enacting retroac-
lively the A. A. AS processing taxes
was being studied Secretary Wallace
said yesterday the Agriculture, Treas
ury and Justice Departments were en-
gagged in formulating plan for COL
lecting the 100000, 900 of impounded
levies returned to professors by the
Supreme Court decision in the rice
millerS' case.
Asked about such plan, the At
torney General said:
That opens up large field OF
and of law. You'd have to
study many books to ind out what is
a retroactive tax, when it can be
assessed, who it can be assessed on
and numerous other studies You'd
have to engage in study of large
aspects Of the law"
Are you now engaged in such a
'tudy?" reporter asked.
yes the Attorney General replied,
adding after pause:
I'm way. The department is al
ways engaged in studying broad as
,ects of the tax question, and this is
(See CONGRESS. Page A.