Evening star., 1936-07-12
REPUBLICAN TRIO
SCORESNEW DEAL
Expenditures, Taxation and
Trade Policies Hit in
Statements.
BY WILL p. KENNEDY.

BY WILL p. KENNEDY.
New Deal expenditures, taxation and
trade policies drew the fire of three
leading House Republicans in state
ments made public yesterday.
Through the Congressional Record,
Representative Treadway Of Massa-
chusetts, ranking minority member Of
the Ways and Means Committee, de-
clared President Roosevelt has spent
more than was spent by all the ad-
ministrations from George Washing
ton to and including Taft's regime"
Representative Bacharach Of New
Jersey, 10 years on the committee,
assailed the tax and tariff program.
Representative Bacon of New York,
striking the same note as Treadway,
declared the majority taxation plan
is shifting the burden to those least
able to pay. He pointed out that in
1885, the Federal Government col
lected 2,232. .402, $40 in hidden" taxes,
or an increase of 286 per cent since
1882 in levies laid indirectly which
must fall on the consumer.
Total Expenditure Shown.
"The annual report of the Secre-
tary of the Treasury" said Treadway.
shows the total expenditures of the
Federal Government for all purposes
In the 124 years from 1889 to 1918
were $24.521 ,845 900; from March 4,
1888. to June 80. 1861 period of a
little over three years - President
Roosevelt has spent SIS, ,127 ,000, 900 in
cash outlays alone, not including any
of the contingent liabilities. amounting
to several billions Of dollars"
He points out receipts in the same
period have been only Sill 1894 000,-
900, making an accumulated deficit
for that period Of "the staggering
total Of $l3,233, 100000" He recalls
that when he first came to Congress
cit required about billion dollars
annually to run the country; now it
takes that much just to pay the in
terest on the debt. without allowing
cent for amortization"
Treadway pointed to the financial
plank of the Republican platform,
particularly to the pledge to balance
the budget mot by increasing taxes.
but by cutting expenditures drasti-
cally and Immediately" He cited
three ways by which the budget may
be balanced: % BY imposing suff1-
cient new taxes to meet the prodigal
spending program; ca by reducing
expenditures to meet existing rev.
enues; t3) by a combination Of in
creased taxes and reduced expendi-
lures.
Debt Payment Held Penalized.
Representative Bacharach asserted
that while ostensibly for revenue
raising purposes the new tax law 'is
actually aimed at forcing the distri-
button Of corporate earnings without
respect to the financial needs of the
corporation. 1t therefore constitutes
q direct and unwarranted interference
with business by substituting Govern
ment dictation for sound discretion
IN the management of the fiscal af-
fairs Of corporation"
THE new law" he said. "even Pc
nalizes the payment of debts by impos-
ing the penalty tax on amounts re-
served for that purpose. It discour-
ages rehabilitation and expansion by
penalidng amounts retained for these
purposes. This will result in retard-
ing recovery and unemployment"
On tariff, Bacharach said: THE
failure of the New Deal program is
best illustrated by comparison Of the
increase in imports and exports from
1884 to 1885"
Imports" he said, increased "a
per cent, but exports increased only 7