Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1938-04-21

ton is urging an appropriation of at
least $3.50, 100000 for the Farm Sc
curity Administration, because of the
dire need of farmers in many areas,
including those hit by drouth. The
Farm Security Administration points
out that, under the present tentative
draft of the relief bill, $175,000, 900
is recommended, and this, officials
say, should be adequate to meet pres
ent needs, though there would be no
difficulty in placing the additional
SIS, 900, 900 advocated by the Farmers
Union Hearings on the bill probably
will start next week.
Omitted from publication last issue
for lack of space.)
News of first rate Importance had
broken throughout the week, involv-
ing both international and domestic
situations, but nothing was quite so
startling as the surprising vote of the
House to recommit the highly contro-
i versial Reorganization bill. It came
after tense session, in which Speak
err Bankhead took the floor while the
House was functioning as the Com
mittee of the Whole, and made an i'm
passioned plea for passage of the bill.
Galleries were packed by visiting
delegations both for and against the
bill.
Among the real highlights of the
news in the Capital this week, aside
from the Reorganization bill battle,
| was the announcement of the PreSi-
dent that he has formulated a double
barreled program which he hopes will
check the present recession. Briefly
his latest recovery proposals are as
follows: An increase of $3.50, 200, 900
to $500,000,O00 in the $1,000, 200, 600
Works Progress Administration ap-
preparation recommended by the
President in his January budget mes
sage and elimination of the so-called
Woodrum amendment requiring re-
lief funds to be apportioned over a
12-month period. Revival of the
moribund Public Works Administra-
ton under a plan calling for 81 ,000,-
100000 to $500, 100000 of Federal
loans to states and municipalities for
heavy construction projects. Final de-
tails of both plans are still being
worked out and it is expected that
special messages on the proposals will
be communicated to Congress in the
early future.
The efforts of us in the House to
provide sound and equitable tax leg
islation, in other words, laws that
would provide for payment by the
extremely wealthy of their fair share
of the burden, were checked in the
Senate during the week by a rapid
fire move by that body which would
provide for elimination of the undis-
tributed profits and graduated cap
ital gains taxes from the House-ap-
proved revenue bill. Briefly, the
Senate voted to substitute a flat 18
percent rate on corporation income
for the House-approved undistributed
profits tax. The House levy applied
to corporations with more than $685.
600 net income and ranged from 16
to 20 percent, depending upon the
amount of profits distributed. On
the capital gains tax, the Senate ap-
proved flat Is percent rate in place
of a graduated scale of rates voted
in the House. The House rates were
lower on gains realized on assets
held for long periods and higher on
gains realized over shorter periods.
The United States Department of
Agriculture now is rushing forward
plans for putting into operation the
new wheat crop insurance program,
authorized by the 1888 farm bill. So
far, only two general offices are con-
templated, one in Kansas City and
the other in Minneapolis. The Of
flee in Kansas City probably will
be opened in May, because of the
earlier crop season, and the one
in Minneapolis in June, according
to Roy Green, chief of the new crop
insurance organization. Under the
terms of the act, farmers will pay
the premiums on their crop insur-
ance not in money but in bushels
of wheat, a certain proportion of
which will be set aside by the Gov
eminent as reserve, to be sold for
the benefit of those farmers whose