Evening star., 1939-08-02

nave lIlSlSleu, UuI Da'iu A""iehee'
a uniform opposition to admins
tration policies. The independent
Democrats who voted to stop the
'lending-spending" bill were aided
indirectly by many score of Demo-
Gratis who timidly stayed away from
the voting altogether,
For a Congress which has broken
all peacetime records in the sums
appropriated-some Sl3,000,000 900
to wake up at the last minute and
prevent another billion or two from
being spent is significant, of course,
of the fact that public opinions
protests at last are being felt. But
the taxpayers will have to bear the
brunt of the enormous expenditures
already voted and this in no way
will be affected by the belated
action.
Gives Roosevelt an Argument.
But, on the other hand, the Pres
ident has been furnished with an
important argument for the cam
paign year 1940 He will now charge
that the Congress, having upbralded
the administration for grants and
subsidies and pump printing"
through direct appropriation, re-
fused to cooperate when lending
was formally proposed as a sub
stitute. Having contended hereto
fore, that idle money and idle men
were conceded to be a phenomenon
of the present economic crisis, the
administration will argue that
private capital could have been
modified under the features of the
new lending bill with Government
support, but that obstructionists
prevented action.
The administration will point
again, if there is business recess
sion, to the circumstances surround
ing the decline in 1887 when busi-
ness dropped off as Government
contributions to purchasing power
were abruptly diminished. The
whole history of the New Deal has
shown that when Congress or the
Executive stopped the money flow,
even temporarily, business condi-
S3OllO ltSu 1O1 tllC WI o.
Business men, of course, say the
economic curve is due to 60 upward
and would ascend more if the ad-
ministration would instill confidence
by reducing taxes or removing the
restrictions on production due to
unsatisfactory labor laws and other
regulations.
Congress now has checkmated the
administrations spending tendency
and furnished one of the elements
which many businessmen will con-
strue as bringing confidence. For
the stoppage of the spending lend
ing" adventure is, at least theor-
etically, step in the direction of
economy and budget balancing, re-
mote as both goals are at present
from attainment.
May Boost Security Taxes.
1t remains to be seen, however,
what the economic effect will be-
Word has gone out from Capitol Hill
that in the melee of anti-adminis-
tration activity, the conference re-
port on the amendments to the
social security law may fall. If it
does, every employer will face next
January an increase in payroll taxes
for old-age insurance. 1t means a
jump of from to IL per cent. Also
all the other changes unanimously
agreed upon in the two houses now
have gotten caught in controversial
amendments.
In dollars and cents the failure
of this legislation may amount to
S340000000 burden on employers.
Likewise the old-age pensioners
would have gotten benefits next
January instead of in 1912. This
means political repercussions among
the old-age voters and their fam
lilies. Last-minute efforts may be
made to get these amendments
through, but the indications are
against possible agreement before
adjournment.
The temper of Congress is one of
concern at last over public opinions
appraisal of a $4,000 100000 set of
appropriations. The general senti-
ment in the House before the vote
was taken on Tuesday was that
enough had been spent, that pump
printing could now be halted, and
that the various Government agen-
cies didn't really need the money
any how. The testimony of Jesse