The Western news. [volume] (Libby, Mont.) 1933-current, 1939-06-08

WASf1ING1O N. -FTeSlQent ROOSe-
welt is on the defensive, with con
gress carrying the ball for tax re-
vision that will encourage business.
Capitol Hill is following Pat Harri-
son, chairman of the senate finance
committee, who has long favored
adjusting taxes in the hope of re-
gaining prosperity, and has decided
to risk battle with the White House
if necessary.
The lines are drawn The Presi-
dent is still hoping to prevent action.
hasty glance over recent ref
erences TO taxation by Dear AL
ben Barley will show the real
views of the White House. Barley
consults the White House before
sailing his soup. No congressman
thinks Barley was talking out of
turn when he predicted mere con-
tinuance Of the nuisance taxes, plus
freezing the social security taxes.
The clash between Harrison and
Barley excites the politically mind
ed, which means all of congress,
because Roosevelt's strength thrown
to Barley made him Democratic
leader of the senate, by a majority
of one, over Harrison.
John W. Hanes, undersecretary of
the treasury, is applauding Harrl-
son whenever he thinks Corcoran
and Cohen are looking the other
way. Henry Morgenthau approves
Harrison $ course also, but his deep
loyalty to Roosevelt prevents open
enthusiasm.
The big question mark is whether
Roosevelt will risk vetoing a pro-
business tax bill which will scrap
some of his dearest brain children,
especially the remnant remaining
OF the tax on undistributed earn
ings. Much is involved, including
the possibility of a rift between the
President and Harry Hopkins. Ru-
mors are rife that Hopkins ex-
pressed considerable disappoint-
ment over the early demise of the
Appeasement program in his recent
talk with the President and Justice
William @. Douglas.
Surprise That Harrison
Should Become So Militant
Hopkins is just as sore as the
President over the defiant stand TAX
en- by the United States Chamber
OF Commerce, but he does not want
the President to kick all of big bust
ness in the face just because neither
likes the resolutions adopted by the
chamber. The chamber, Hopkins is
said to have urged on the Presi-
dent, IS not realty tine -veiee- of att
businessmen more than a modicum
of it, as matter OF fact. But Hop
kins faced an angered and much
goaded President. The left-wingers
had been working up Mr., Roose-
velt's ire with considerable. adroit-
ness, using the chambers unfortu-
nate language as salt on his wounds,
and taking advantage of the alb
sence of DR.. Hopkins pacifying lin
ament
Development of the situation came
as a surprise to most of Washing
ton. Everyone knew that the Presi-
dent did not want any serious tax
revision, and knew why he did not
want it. The President was eager
10 retain that penalty on undistrib-
uted corporation earnings. He had
been advised that there was not
chance Of retaining it if it ever
reached a vote.
The surprise was that Senator
Harrison should become so militant.
Not because his ideas about tax re-
vision to encourage business were
secret, but because it was thought
ne had little desire to make a hope
9eas figiit-aga tire 4rgs7dgrt. Also
that he believed the President even
tually would be forced to yield in
order to produce sufficiently better
business conditions to make Demo-
cratic success possible in 1910.
Sooner or Later Congress
WW Take Profit Out Of Har
1t is very difficult to run counter
TO the contention that the profit
should be taken out of war. For
that reason it is very likely that,
perhaps not at this session Of con-
gress, but sooner or later, congress
will pass some such legislation as
that proposed by Sen. Josh Lee, or
by Sen. Homer T. Bone.
The country has been thoroughly
sold on the idea that group Of
wicked international munitions MAX |
ers are always stirring up trouble
and provoking war in order to make
profits. There is just enough proof
OF the contention to make it politi-
cally dangerous to 60 against it.
The difficulty, as practical army
and navy men see it, is that in
order to prevent someone from max
ing a profit the country may, to
just that extent, curtail its own pow
er to make war. To put it another
way, taking the profit out of war
may succeed, but the effectiveness
OF the country in war may be inn
paired sufficiently by the restric-