The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1940-06-06

mn.
the end Of our financial rope than
we had any idea. If new taxes
are not imposed during this ses-
sion we will find ourselves with but
fifteen million. dollars in the treas
ury on March 1st. That small sum
would not run the New Deal adj
ministration one-half day.
Congress Is asked to raise the
Federal debt limit from As thous-
and million dollars to 48 thousand
million dollars, which will permit
the Administrator to float 3 thous-
and million dollars in national de-
Tense 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 Congress is asked to impose.
Two bond issues, which mature
this year and involve about 1 thous-
and million dollars, will be redeem
ed out of proceeds of the new bond
issue providing refunding issuances
cannot be sold at satisfactory prices
and rates of interest. We may safe
ly assume that the maturing bonds
will be refunded because of the
small demand for money these
days. There are too many taxes
to encourage expansion or setting
up new businesses. Government
bonds are about the only securities
for which there is demand.
The new taxes proposed by the
Treasury Department are as fol-
lows:
Annual Returns
MILLIONS
1870 supertax on income taxes
Individual and corporate)
for taxable years beginning
after December 81, 226
Increase tax on distilled spirits
from $2.25 to $500 per proof
gallon, effective July 1, 1940.. 81
Increase tax on beer from IS
per barrel to Sc per barrel, eff
fective July 1, 1940...--.-.......-.... 46
Increase tax on gasoline from
lie to 11ac per gallon, effective
July 1910 ...........-...... 112
Increase the tax now payable
on other internal revenue tax
es Except Social Security and
and regulatory taxes) ................ 76
Increase the tax on cigarettes
from So to $3.50 per thousand
&c to 7c) per pack) .-......-..-...-.... II
Reduction in admissions-tax ex-
emption from 40c to 30c........ rs
Increase of 20e5 in transfer tax
on stocks and bonds.....-.....-...--. 8
--9OOO
Last Friday the President sent
to Congress a second message ask
ing for additional authorizations
for defense that may run as high
as $500 million dollars. In his mes
sage the President also asked auth
ority to mobilize the National
Guard and the Reserves. We do
not know where we are going, but
we are certainly on our way.
Americas Wonderful Capacity
That there is no justification for
the hysteria shown over our ma
tional defense was forcibly brought
to light last week when an official
of the Ford Motor Company an
nounced that it would be possible
for his concern to swing into aero
plane production and reach an out
put of one thousand planes day
without the erection of additional
plants.
General Motors could do as well
and then we have the Information
al Harvester Company and scores
of other large concerns that can
be quickly changed over to the
production of material for national
defense. The more think of the
scare that the President needless
ly threw into our people two weeks
ago the hotter get under the col
lar. 1t was needless and certainly
not justified, even though this be
election year.
No Wonder Hull Won
1t will be recalled that the pro-
posal to renew the Hull Reciprocal
Trade program for another three
years won by very small margin
in the Senate. 1t has now been
disclosed that the Administration
secured the votes of Louisiana's
two Senators for the proposal by
agreeing to support their bill which
would appropriate millioc dollars
out of the Federal Treasury to re-
imburse violators of the Jones-Cos-
tigan Sugar Act.
When the Trade Agreements Act
was before the Senate, the senior
Senator from Louisiana tried to at
tach his bill to reimburse the sugar
growers of his state whose subsid-
les were withheld in 1898 because
of their violation of the child labor
provision. He was induced not to
do so on the promise that the Ad-
in CT finr xyO,,1I cI1rnprf hiS