The Western news. [volume] (Libby, Mont.) 1933-current, 1937-01-21
SEEN and HEART
around the
NATIONAL CAPITAL
By Carter Field

u
now clear. For instance, 1t may be
stated with the utmost positiveness
that there will be no substantial
modification of either the tax or
social security legislation. But there
will be minor amendments to both
acts.
Some underbrush can be cleared
away as to these. For instance 1t
is probable that there will be an
amendment enacted to the tax law
which will help corporations deeply
in debt. Another may hberalize
present allowances for replacing OBJ
solete machinery, plant or what
not. But there will not be any mod
ification of the underlying princi-
pie for taxing undistributed earn
ings. There will not be any lib
eralization OF the rulings now gov
erning new or additional plant or
productive capacity
Answer II Simple
The answer to this is very simple.
The underlying principle here Is
part of the warp and woof OF the
Roosevelt economic doctrine. 1t IS
not new doctrine so far as he is
concerned. 1t is not something to
which he has been converted, and
from which, therefore, he might be
expected to be swayed. A careful
reading of his acceptance speech
before the Chicago convention In
July, 1882, will reveal that he had
the same logic then which drove
him to last years tax bill.
In that speech accepting the NOM
nation. he demanded to know what
had become of the "piled up sur
plusesn of the corporations from the
prosperous days. Some Of it, he
said, had been put in additional
plants, which nov stand stark and
idle"
So it is far from being just a
bright idea about taxing the rich by
forcing out dividends which would
put them in higher. income tax
II brackets. And it goes way beyond
even the idea of protecting the mi
nority stockholders from the ambi-
tons OF their company managers,
though both are felt very strongly
by the President and most of the
men on whose economic judgment
he relies.
It is much more fundamental. II
goes to the idea of planned econ
omy." 1t revolves around an I'M
/ deriving idea of Mr.. Roosevelt
} which every business man should
! remember, that the big business ex
) ecutives of the country failed rath.
err Iamentably in 1929 and that di-
| rection of some aspects of business
/ by government officials could not be
: much worse.
] Planes for Spain
There was not the slightest fear
either at the State department OF
the White House, that the renovated
airplanes for Spain about which Sc
: much excitement was raised by The
! administrative would ever take par
in hostilities across the water. Tha
, was not the purpose of the hubbub
The whole purpose OF the new:
| splash was to affect the gentlemen
i on Capitol Hill--to convince them
) that no law they might possibly
: draft could reach every situation
a that might arise to embarrass thi.
. government-that discretion mus
Il Be vested in the President to handle
any situation which might arise.
So far the resulting propagand;
. has been most satisfactory - from
8 the standpoint of the White Hous,
! and the State department. Ever
. Senator William K. Rorah, chair
. man OF the foreign relations com
4 mittee, has weakened considerabl,
# in his firm attitude against granting
n the President discretion.
: To understand the true inward
n ness of the situation it is necessar,
g TO 20 back little Originally, til
President and the State depart
t. ment wanted a very definite sort Q
neutrality legislation They want
ed law which would give the Pres
dent complete discretion-a law, TO
;, example, which would permit him t
n sanction shipments Of arms. to tn
1t nation wantonly attacked, and t
d prevent shipments Of arms to tn
IS aggressor. The sort Of law which
n to use a classic example. woul
d have permitted President Wilson t
J. allow shipments to France and Be
GUM, particularly Belgium, bl
in bar them to Germany.
= Was Rather Clumsy
10 A bill Of this sort was starte
e through the works in congress, bl
q very suddenly it was RADICAL
g changed, before the administration
10 very busy with other and seemingl
m more important things. had tim
IN to bring pressure to bear. All di
G erection was removed from the bill
at An attempt was made TO name til
IS kind of war materials which coul
OF be barred, but it was provided tn;
n in the event of war these must |
barred to the warning nation
n There is still controversy as to VIII;
to the articles-under this law-real
Ist include. Machine guns and amm