Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-07-06

the President the relief bill carrying
$1,755, 100000 which the President
signed under protest.
The Administration sustained two
severe defeats Friday. The Senate
filibuster killed the monetary power
law which expired at midnight. That
is the law under which the President
has the power to devalue the dollar.
1t also created $4,000, 100000 sta
Utilization fund. Personally, I was
glad to see that power taken away
from the President. Congress had
no right to surrender it in the first
place.
The Administration was again de-
feated on the same day when we
wrote into the Neutrality bill linn
tied arms embargo by vote of 200
to 100. This action was taken not
withstanding the personal appeal of
Speaker Bankhead and Majority lead
er Rayburn that it be rejected. l
very much doubt if the President will
sign the Bloom Neutrality act in it's
present form because it does not give
him a free hand in time of war;
NIT him to furnish favored bellig-
erent countries with unlimited credits
and war material. That is altogether
too much power to grant to any man.,
I care not who he is. Woodrow
Wilson had such power and we know
with what tragic results it was used.
Sweden Prospers.
Last Friday 1 had the pleasure of
meeting Gustav Moller, Swedish Min
lister of Commerce, who visited WASH
ington on his tour of the United
States. The meeting took place in
the Speakers office and naturally
he was asked some questions regard
ing conditions in his country. Swe-
den, with a population of 100000,
has practically no unemployment. Mr..
Moller informed us that his country
is having regular "boom."
l wish the President would tell us
why we are tagging behind European
countries in recovery. This is the
richest country in all the world. We
have more resources than any other
country, yet we have much larger
percentage of unemployment and
more actual suffering. Isn't it about
time that we sit up and take an in
ventory and find out what is wrong?
Tax Exempt Securities.
Last Friday the Ways and Means
committee had before it Professor
Lutz, Public Finance department,
Princeton university. Mr.. Lutz ap-
peared in opposition to the Admin
istration's proposal to pass legisla-
ton forbidding future issues of tax
exempt securities. He is recognized
authority on the subject so consider
able weight must be given to what
he said.
If Congress enacts legislation which
will enable the Federal government
to tax all state and municipal bonds
in the future, Professor Lutz informed
us that it will result in states and
political subdivisions being compelled
to pay $113, 100000 in increased in
terest rates, IS percent of which would
fall on counties and local units. He
stated that the bulk of the burden
would fall upon property owners who
already carry the biggest share Of
the burden. Professor Lutz estimated
that the Federal government would
gain $12O,OOO,OOO in taxes but would
have to pay in increased interest rates
about $3O,OOO,OOO; that states would
pick up only about $17,O00,OOO by
taxing Federal bonds, leaving a net
loss of $96,OOO,OOO. Practically all
states and political subdivisions are
opposed to the proposition and num-
Der of states are represented by their