Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1940-06-06

Sational speech be- -
fore the National -
Aviation Forum,
which met in ~ 81
Washington last st
week, Major Will
liams, formerly an
outstanding Navy
filler, showed up - =
the untenable position taken by the
President on national defense. He
pointed out that there is absolutely
no danger of invasion by sea or air.
Said he, "With all their air power the
Germans could not attack and subdue
England from air bases 800 miles to
500 miles distant. Instead, they seized
air bases on the north coasts of Hol-
land, Belgium and France-20 to 100
miles distant" Major Williams
:scoffed at sea power in light of events
in Europe and said that the United
States was following the same "bung-
ling mistakes of British politicians
in still placing its hopes in the Navy.
The Major demanded that, contrary
to the Presidents announced plans,
the proposed new air armada be
severed completely from Army and
Navy control and made a separate
unit free of their domination. The
distinguished Major struck a new
high in these words: "The President
must know this-but apparently the
pattern is panic first, and then war;"
AS a result of the agitation pro
and con, we are going to get sub
7stantial defense. Already a board to
supervise production has been set
up by the President, which includes
several outstanding industrialists.
This insures that we are going to get
our moneys worth providing the man
in the White House keeps his hands
off and gives them free rein, with
full authority to do whatever is nee
essary.
A New Tax Bill.
Congress was taken completely by
surprise last week when it was an
nounced that new tax bill must be
passed before Congress adjourns. 1t
seems that we are much nearer the
end of our financial rope than we
had any idea. If new taxes are not
imposed during this session we will
find ourselves with but Is million
dollars in the treasury on March 1.
That small sum would not run the
New Deal administration one-half
day.
Congress is asked to raise the Fed
eral debt limit from As thousand mil
lion dollars to 48 thousand million
dollars, which will permit the Adj
ministration to float 3 thousand mil
lion dollars in national defense
bonds" or so much thereof as may
be necessary. The bonds are to be
retired in five years from the receipts
from additional taxes, which Con-
gress is asked to impose.
Two bond issues, which mature
this year and involve about one thou
sand million dollars, will be redeemed
out of proceeds of the new bond issue
providing refunding issuances cannot
be sold at satisfactory prices and rates
of interest. We may safely assume
that the maturing bonds will be re-
funded because of the small demand
for money these days. There are toe
many taxes to encourage expansion
or setting up new businesses. Gov
eminent bonds are about the only
securities for which there is demand
The new taxes proposed by the
Treasury Department are as follows
Annual Return.
Million.
Ten per cent supertax on income
taxes Individual and corpor-
ate) for taxable years begin
ming after December 81, 1889 1921
Increase tax on distilled spirits
from $2.25 to SO per proof
gallon, effective July l, 1940- 9.
Increase tax on beer from SIS per
barrel to Sc per barrel, effec-
tive July l, 1910 --- a
Increase tax on gasoline from
1c to 11ac per gallon, effec-
tive July l, 1910 ------- II:
Increase the tax now payable on
other internal revenue taxes
Except Social Security and
regulatory taxes) -- Y
Increase the tax on cigarettes
from So to $3.50 per thousand
(6c to &c per pack) ----- z
Reduction in admissions-tax ex-
emption from 40c to SOC - 2
Increase of 2O% in transfer tax
on stocks and bonds -----
Total Observation-Disclosures SOS
Last Friday the President sent t
Congress second message asking TO
additional authorizations for defens
that may run as high as $500 millio
dollars. In his message the Presiden
also asked authority to mobilize tn
National Guard and the Reserve.
We do not know where we are coins