Evening star., 1939-06-19
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ton in the maintenance OF currency
stability and the prevention of com.
petitive attack upon our currency az
does the possession of our strong
Navy in the maintenance of peace
and in the prevention of military
attacks against our territory"
House Takes Up Taxes.
Meanwhile, Congress hurry tc
dispose of important financial leg
islation before July saw the House
ready to take up business tax re-
vision
Little real opposition to the tax
bill was in sight. although Repub-
lican members of the House Ways
ard Means Committee contended
it does not go far enough in stimu-
lating business. Passage was ex-
pected by nightfall.
The tax bill. offered in response
to business mems demands for
changes in corporation levies. would
wipe out the tax on undistributed
corporate profits and substitute a
fiat 18 per cent levy on companies
earning more than S25.000 a year
The present rates of 1912 to Is per
cent on corporations with income
under $25 900 would be continued.
Postage Rate to Continue.
The bill also would extend $544,-
900 900 in excise or nuisance" taxes
and would continue the Scent post
age rate on out-of-town letters for
two years. Both will expire June
80 unless re-enacted in the mean
time.
currence, Chairman Harrison, Dem
ocrat of Mississippi of the Senate
Finance Committee and Senator
Barkley, Democrat, of Kentucky,
the majority leader, have promised
to expedite the bill when it reaches
the Senate. ~
Although President Roosevelt has
suggested that the income tax base
should be broadened, Finance Com
mittee members said there would
not be time to act on the pro-
posal at this session.
Senator Thomas, Democrat, of
Oklahoma has offered an amend
ment to the monetary bill to re-
quire issuance of $2000,000 ii
greenbacks against that amount
of gold Senator McCarran, Demo-
crat. of Nevada has proposed
that the Treasury jump its present
price for domestically-mined silver
from 6464 cents to $104. Senator
Logan. Democrat, of Kentucky has
suggested an amendment requiring
the Federal Reserve Board and the
Treasury to use their monetary con-
trolls to return prices to the 1926
level
Democratic Leader Barkley, con-
tending that the administration has
ample strength to beat down all
amendments. told reporters he
hoped the Senate would approve
the bill by midWeek
Then he will seek prompt action
on the $l,735 100000 relief bill, al
ready passed by the House 1t would
substitute three-man board for the
would place various restrictions on
relief operations. A Senate Appro-
priations Subcommittee will start
closed hearings tomorrow.
Besides tax, monetary and relief
legislation, the only major bar to
prompt adjournment is the admins
tration's suggested revision of the
Neutrality Act. Secretary of State
Hull wants to repeal the embargo
on arms shipments to belligerents
and to give the President authority
to forbid American travel in combat
zones.
Fight Seen in Senate.
The House is expected to approve
the Hull proposals. but a protracted
fight is in prospect if the measure
comes before the Senate
Eight peace organizations sent an
open letter to members of Congress
advocating defeat of the administra-
ton bill on the ground that repeal
of the arms embargo would be un-
neutral.
The organizations were the Ma
tional Council for Prevention OF
War. the Fellowship of Reconcilia-
ton, the Women's international
League for Peace and Freedom
World Peaceways, War Resisters
League, Keep America Out of Wal
Congress. Youth Committee Against
War and the Labor Anti-Wai
Council.
Meanwhile, Treasury legal experts
were reported to be drafting legis-
lation which would give the ad-
ministration new powers to lend
billions for self -liquidating projects
In usually well-informed congress
sional circles it was said the new
program would involve the creation
of no new agencies, but would au-
thorize additional large-scale lend
ing by such existing agencies as the
Reconstruction Finance Corp, the
Bureau of Public Roads, the Rural
Identification Administration and
the Farm Security Administration
President Roosevelt has said that
q new industrial lending program
is being studied, but has given nc
indication as to whether he will
request one.