The Western news. [volume] (Libby, Mont.) 1933-current, 1939-02-23

ptfH1.
Observation-Disclosures on a
number of issues between the White
House and congress is erystallizing.
The lines are not based on the relief
appropriation battle. Some of the
Presidents supporters on that will
desert him on other fights, and vice
versa. Sometimes he will have a
majority. Sometimes minority.
The big point of the relief fight was
not the amount of money, it was
loss of face and prestige by the
President II e-ded the SIX years of
utter confidence in his direction and
faith in his administration SO far as
spending is concerned.
Here is the way the issues look
now:
Devaluation-The President will
win. Congress will continue his pres
ent power TO cut the gold value of
the dollar down to so per cent of its
pre-Roosevelt status. Silver state
senators swing the balance here in
combination with the loyal bloc. The
price of their votes will be extension
of subsidy for domestic silver.
acknowledgements will not in
terfere with the sale of planes to
France. II is impressed with ne
cessity of strengthening France and
nr.4as,, ct.warf rsen1ru Cf y,rauapf
ing war But sentiment is also
strong against increasing amount of
discretion to the President in en-
forcing the neutrality law. The be-
lief is vigorous that changes of rules
after war starts means overt acts,
hence endangers dragging u. S. in.
Congressional sentiment is not quite
peace at any price but almost.
Wagner Act--Congress is set on
modifying act along lines of A. F.
of L. amendments introduced by
Senator Walsh. President would like
to dictate changes but will probably
accept inevitable to avoid further
loss of prestige.
Congress Is Opposed TO
Presidents Tar Ideas
Taxes--Congressional sentiment
is SO strong against Roosevelt's wish
to restore original tax on undistrib-
uted corporation earnings and cap
ital gains taxes that he may aban-
don fight. The President must ask
for more revenue. Congress is def
initely set on boosting rates on in
comes from $4,000 to $50 1000, just
as definitely against boosting higher
ievies-because of law of diminish
ing returns-and doubtful about re-
ducing exemptions. The President
will have plenty of chance to study
the situation before making any rec
concentrations.
Social Security-Congress will not
60 as hogwild on old age payments
as campaign pledges of successful
candidates might indicate. 1t will
boost them, advance date on which
they 60 into effect. 1t will not re-
duce payroll taxes, but may force
The treasury to contribute to the kit
~. The President will oppose the
last vigorously.
Government Reorganization-The
President will not get the power he
really wants to revamp government
agencies and departments. Congress
will not consent to turning I. c. c.,
civil service commission, ETC., into
mere administration underlings.
Senator Byrd will continue to annoy
the administration considerably by
insisting on real economy.
Relief-Senate votes cutting poll
tics out of federal payrolls, though
partially nullified by the house, point
the way to more trouble for the New
Deal in reorganization of the WPA
set-up and control Of the appropria-
ton for relief in the fiscal year be-
ginning July /, next.
Electric Industry oH spef
As 10 Delaying Prosperity
Inc electric industry VIII shortly
give demonstration of the truth or
falsity of the often made charge that
lis delayed spending has been one
Of the most important factors in
holding back prosperity. Actually,
OF course, investors in the electric
industry may wait little, to see
if the logical steps which might be
expected to follow the purchase of
the Tennessee Electric properties by
IVA are followed up. For example.
to see if there will be some assur-
ance that the government will not
extend its competition to new areas.
and to see If the government will
treat fairly other units it buys 10
avoid duplication and to avoid com