Evening star., 1936-11-23
THE POLITICAL
MILL
BY G. COULD LINCOLN.

Senator Pat Harrison's recent declara.
ton that the administration's corporate
surplus tax had widely increased the
purchasing power OF the Nation must be
construed as praise of the policy in
volved rather than praise of the measure
as raiser Of revenue. Obviously il the
tax law, which has been bitterly assailed
In some quarters as q destroyer Of thrift
on the part of corporations, Is resulting
in the distribution of corporate earnings
on q scale Of great magnitude, the Gov
ernment is not going to derive as much
revenue from Its operation rs had been
expected. Direct revenue. that Is. On
the other hand the dividends which are
paid to stockholders because OF the law
will be taxable and revenue will accrue
therefrom in the income tax collections.
Furthermore, increases In salaries and
wages, which Harrison attributes to the
operation of the law, will mean more
revenue. For the recipients will have
higher income taxes to pay, and the
money which goes into the purchase Of
more automobiles, tobacco and whatnot
will increase the internal revenue.
An increase in the purchasing power Of
the people means more business, and
more business means better times, IS
well as greater revenue for the Govern
ment. These things work in chains. the
links connecting. 1t looks as though the
cycle, which operated for less purchasing
power, less business and for hard times,
has finally been definitely set In re-
verse. Credit for this will be given by
many to the policies of the Roosevelt
>iv,f= ffc HrYo
ing program. Others will declare that
the country, having come down to
rock bottom, found it necessary to re-
plenish all kinds Of stores. You can
take your choice of explanations. The
important fact is that the cycle which
means recovery and prosperity appar-
emily is in motion.
Harrison, as chairman Of the Senate
Finance Committee and as q leader
of the Democrats in the Senate, COM
mands attention when he speaks. He
took occasion on his return to Wash
ington last week to declare that the
time has come for Government ex-
penditures to be materially reduced. He
went further, declaring that any new
proposals for expenditures of Govern
iuCHt IflOilCy WOulu NC SdA Cluiiy oNdIllCu
and supported, If at all, with distaste.
Harrison undoubtedly is expressing the
view of many Of the more conservative
Democrats in the Congress. Many of
them viewed with considerable alarm the
vast and constantly rising appropriations
and expenditures of Government money.
There have been indications that the
more advanced New Dealers, who seemed
~, = - &L-A
ernment and the Nation were mex
haustible, will meet with determined re-
sistance If they continue to come for
ward with proposals for spending money
at the approaching session Of Congress.
One Of these New Dealers with very
big ideas was DIR. Tugwell. head OF the
Resettlement Administration and Under
secretary Of Agriculture. Mr.. Tugwel Is
taking himself out of the administration
to go into private business. There have
been signs that the operations Of the
Resettlement Administration were about
to be curtailed AS matter Of fact one
of the agencies of the Government which
Senator Harrison mentioned as needing
the pruning knife was the Resettlement
Administration.
In the discussion of cabinet changes
there has, at times, been mention of the
Navy Department, over which Secretary
Swanson has charge. The former Vir-
ginia Senator has been at the head OF
the department since President Roose-
welt took command. 1t Is now under
stood that Swanson will remain at his
cabinet post as long as he desires. The
President, 1t Is said, does not intend to
dislodge him. At one time there was
talk in inner circles of the possibility of
the retirement Of the Virginian and the
appointment of another, Rear Admiral
Cary T. GraySon, U. S. ~. retired, to
succeed him. Admiral Grayson has been
a close personal friend Of the President
He Is at present active head of the Amer
ican Red Cross, as its national chair
man. If at any time Secretary Swan
son should relinquish his post in the
cabinet, it might still 60 to Grayson.
*+*
Judson C. Welliver. at one time "lit-
erary secretary at the White House, has
written an interesting letter to the New
York Times saying that in 1921 the late
President Harding wished to include in
his message to Congress a proposal that
the Constitution be amended 50 as to
permit only single presidential term Of
six years. Mr.. Welliver was at the White
House during the Harding administra-
ton and was close to the President. He
argued against the proposed recon-
mendc lion, at the start Of the Harding
administration, and was backed up in
his stand by Mrs. Harding. The pro-
posal was stricken from the message,
although Welliver said that he believed
Harding would have made 1t later. since
he firmly believed in the change. It
would be interesting. indeed, If Presi-
dent Roosevelt should advance such q
recommendation. He has served one
term and has been elected to another.
There is as much speculation even now
as to what is to happen in 1910, at the
end of President Roosevelt's second term.
Will he undertake to upset the precedent
which has come down from George
Washington and which limits q Presi-
dent to two terms?
Other men have thought Of q third
term, notably President Grant. Two
of President Roosevelt's more recent
predecessors, Theodore Roosevelt and
Calvin Coolidge, might have made bids
for what in reality would have been
third terms, but declared against it..
Theodore Roosevelt, after having served
nearly all Of President McKinley's Sec
..l torv,n a., fha Uyhfta Ho1lSe annntlnced