The Nespelem tribune. [volume] (Nespelem, Wash.) 1934-1936, 1936-02-13
Congress Faces
New Tax Problem
President May Place Burden Of
Finding More Revenue
Upon Congress

Finding More Revenue
Upon Congress
| WASHINGTON, Feb. 10. (PAS)
Somewhere the money has got to
be found to pay the bonus and to
pay for whatever farm bounties
may be decided on Everybody at
both ends of Pennsylvania avenue
agrees that that is so.
The difference of opinion be-
tween the White House and the
capitol is as to where the money is
coming from The presidents in
clination is to say to congress "You
got us into this mess by passing
the bonus over my veto; now it's up
to you fellows to find the money
to pay it with
MIR. Roosevelt has been talking
recently about the necessity of new
taxes and it becomes more appar-
ent from day to day that the ad-
ministration is becoming firm in its
determination to put the financial
affairs of the nation on as solid a
basis as possible.
At the other end of the avenue,
however, the boys on Capitol Hill
just don't want to vote any kind of
new taxes in an election year. That
is the reason for the renewal of
loud inflationary talk. A year ago
it would have been quite impossible,
given similar circumstances, for a
greenback measure, to have got
through both houses of congress
even over presidential veto.
The prospect of initiation has been
so widely discussed, since then, and
the general public reaction against
it has become so evident, that it is
not now likely that anything of the
kind will be attempted.
Congress Has Tax Problem
AS good a guess as any is that
the president will recommend new
taxes to yield close to billion dol
lars a year, and that congress will
not vote all of them. There is a
feeling than an excise tax on pro-
cessors of agricultural products to
take the place of the AAA taxes
would have bad reaction from
consumers in cities, but it is pref
ty safe guess that something of this
F, sort will be enacted.
What congress would like to do
would be to find some way of put
ting more taxes on business without
raising consumer prices. There is
talk about a higher excess profits tax
on corporations and increasing in
Incorporate dividend taxes. The
president is expected to urge new
inheritance taxes, but that congress
will adopt them is doubtful. Much
more talk is heard of general
manufacturer sales tax, and that
is entirely possible.
One of the latest plans being SER
iously discussed is for a law to
legalize lotteries and put heavy
tax on them. That appeals to a
good many of the city members
but the rural districts are supposed
to be against it. On the other hand
many members from the West and
South favor increasing the liquor
taxes, to which the city representa-
tives are opposed.
Somewhere along the line, how
ever, billion dollars more than
has been provided for must be
found, and the administration def
nitely does not want to have to do
any more important borrowing.
Federal Reserve Board
The personnel of the new Federal
Reserve Board is generally regarded
as being satisfactory even to such
critics as Senator Glass, who has
buried the Ratchet in his feud with
Chairman Eccles.
Mr.. Eccles' influence at the White
House is steadily increasing. The
president relies upon him in finan-
cial matters almost as much as he
does upon Secretary Morgenthau
and both Mr.. Eccles and Mr..
Morgenthau are determined that
there shall be no inflationary move
ments so far as the treasury and
the Federal Reserve System can
control of the monetary situation.
Politically, the current discussion
is about the calm, analytical and
liberal tone of the speech made by
Governor Landon, of Kansas, which
contrasts sharply with some of the
more abusive and belligerent utter
ances on both sides of the political
fence. Gov. Landon, who now says
that he prefers to be called Alfred"
instead of just plain "Alf", has
made a very decided impression
among some of the Republicans.
So far he has not been vigorous
enough in his partisanship to please
the Old Guard leaders of the COP.
They like him better however, than
they do either Senator Borah or
Senator Vandenberg, while the
Democrats of the Liberty League
school are intimating that they
might be inclined to throw what
ever strength they have to the Re-