The Western news. [volume] (Libby, Mont.) 1933-current, 1937-12-02
SEEN
HEARD
around the
NATIONAL
CAPITAL
n 6~A ~ h
By Carter Field y


the most important questions In
Washington. Few observers believe
that it is anything more than stra-
tegic retreat. Most of them believe
that the offensive will be renewed,
with fresh vigor, when the present
business recession turns, as every
one hopes it soon will, into renewed
prosperity.
Some of the Capitol Hill leaders
predict, however, that even If bust
ness should blossom like the rose
next summer the drive toward
planned economy will not be re
sumed until after the election next
November. A few even predict that
it will not be resumed in full force
until after the Presidential election,
thoughthis seems less probable. Such
a long delay is not compatible with
the Presidents normal mental proc
esses.
Had it not been for the business
recession there would have been
batttfe-be between congress afad-the=
President almost as bitter, and
probably as significant, as that
over enlarging the Supreme court
last winter. Congress was all set
for revamping of the undistributed
earnings tax, and the capital gains
tax, long before the business men
back in the districts and states be-
gan to blame the whole recession
on governmental interference with
business management and invest
ment trends. The business recess
sion simply strengthened this de-
termination.
But it also determined the Presi-
dent to yield, at least in part, and
to lay more emphasis on balancing
the budget. This in turn promises
less government competition with
private business, particularly in the
electric industry.
To Fight Again
The same battle will be fought,
but the battle-ground will be differ
ent. The President has retreated to
a stronger position. Son James and
Charley West, Tommy Corcoran and
Charley Nicholson, will be found
buttonholing senators and represent
atives to prevent modification from
going too far, rather than to pre-
vent any modification at all.
And there may be no fight what
ever to force immediate power
projects into the seven TWAS. In
fact Sen. George w. Norris is al
ready giving out interviews that his
understanding with the President on
what subject seems to be very diff
ferent from what the President now
thinks it is.
As another result Of this breath
ing SPELL the President and Sen.
Robert M. La Toilette, of Wiscon-
sin, seem to be further apart than
they have been at any time since
Mr., Roosevelt entered the White
House.
La Toilette has never been afraid
of taxes-nor of admitting frankly
that more must be laid on the small
income group. He has consistently
scorned the New Deal intimation
that the rich could be made to pay
for New Deal spending So he wants
to boost the rates on small incomes
and lower the exemptions as WE'LL
Moreover, he wants the government
to 90 right on with spending-in-
crease it until every available "em-
playable" can be put on the govern
ment payroll.
:. Strategically, this puts the Presi-
dent in between the two extremes,
an extremely enviable political po-
sitioq 1t may make very much
| harder the task of the southern con-
servatives, who hope to win party
control, nominate conservative,
and really turn to the right in the
next national platform.
Tax Revision
President Roosevelt bends to the
gale, to keep the New Deal trunk
from swapping, but even as he bends
he shows clearly the resiliency
which will lend power to the swing
back SO soon as the gale has ceased
blowing.
With a congress all set for re-
vision of the tax laws to ease the
burden business has been bearing,
the President springs in with his
message saying some changes are
necessary. Then he hints at changes
far less drastic than congress was
determined to make.
For example, he says nothing
about when the tax notifications
shall be made
Sen Walter F. George of Georgia,
member of the finance committee
and powerful figure among the
group of southern conservatives who
hope to take control of the party
away from the New Dealers, and
nominate one of their number, in
1910, wants immediate revision Of
both the capital gains and losses
and Of the undistributed earnings
taxes. Not only that, he wants to
make the notifications retroactive
to apply to 1887 earnings.
Again. the President wants to use
the modification Of the undistributed