Evening star., 1936-02-05

BY the Associated Press.
Actual drafting of taxes to finance
the new farm program was scheduled
for today by President Roosevelt as
he pressed forward with a series Of
major financial conferences.
AS some Capitol Hill Democratic
sources heard, the White House had
no present plans for new levies 10
finance bonus payments. Mr.. Roose-
welt summoned advisers to go over the
farm tax program.
He has said at least $500, 900 600
would be needed. drawing a distinc-
tion between new taxes and levies
simply replacing the invalidated A. A.
A. processing taxes.
The farm tax meeting was sand
wiched between two other discussions
considered vital to New Deal policies.
Yesterday the President arranged to
cancel more than $1,000. 100000 in
authorized Government credits; to-
morrow he checks over the possibilities
of similar cancellations in direct
spending.
The White House itself had no fur
tller word on bonus taxes.
Chiefs Summoned.
Summoned for the farm revenue
discussion were Secretaries Morgen-
thau and Wallace, Attorney General
Cummings and Solicitor General STAN
ley Reed.
A leading Democrat closely in touch
with tax matters said today definite
word had reached the House Ways and
Means Committee that the admins
tration had no present plans for asking
new taxes to cover bonus payment
costs.
In some quarters, $3.50 100000 in
bonus taxes had been discussed. Mr..
Roosevelt told the press yesterday,
however. that the additional cost to
the Government of paying the bonus
Immediately was about 100000 900.
All tax bills originate in the Ways
and Means Committee.
The prominent Democrat preferred
AAOS w bN AdOtCA Ny 11C
Gated Chairman Doughton of the COM
mittee, in discussion with the White
House by telephone, had received in
formation that on the basis of present
plans no taxes to finance the bonus
will be sought.
Roosevelt to Meet Chiefs.
Some Washington observers held
the opinion that should the President
determine on slash in direct spend
ing, in addition to that projected for
the use of Federal credits. the move
might be interpreted as a start to-
ward restricting major New Deal
services.
The Ways and Means Committee
was in session today for minor legis-
lation. Doughton still looked toward
the White House or Treasury for some
definite recommendation for taxes be-
fore initiating any tax moves him.
self.
Inflationists to Confer.
InflationiStS opposing any new
taxes for the bonus in advocating
currency expansion to liquidate the
veterans debt we're to meet later in
the day to appoint a committee to
organize their drive.
Observers, meanwhile. discussed
what affect the canceling of $1,000
100000 in authorized credits would
have on the forthcoming financing OF
other governmental activities.
20 rrfor
yesterday. Mr.. Roosevelt said the &C
ton could not be construed as a
tightening of purse strings or as a
signal that the emergency was over.
1t was a usual procedure, he said, and
was not calculated to affect the Gov
ernment bond market.
In discussing the scrapping OF
powers. the President mentioned spe-
cifically the H o. L. c., the Farm
Credit Administration and the Recon-
struction Finance Corp.
The H. O. L. c. (set up to lend
money in aid of distressed home
owners) was authorized by Congress
to expend $4.75o, 100000. 1t was said
that most of the loan applications re-
ceived before the deadline fixed by
law have been passed on and that the
corporation will be able to stop $780,
O0O, 900 to 81 ,000, 900 900 short of the
authorized outlay.
Asked about the present gold move
ment. the President commented that
it would do the country no harm.
Additional licenses to ship gold from
the United States to France and Hol-
land were granted by the Treasury
yesterday, bringing the total exports
to 5,225 900 in two days. The out
ward movement reverses a trend Of
long standing.