The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1940-01-18
(By Staff Writer)

of the 18th Congress had not got
their chairs well warmed after
recovering for their second and
last regular session before it be-
gan to appear that there is stor-
my weather ahead.
Neither the Republican opposi-
ton nor a considerable proper
ton of the Presidents own party
showed an inclination to be guild
ed by the implications of the
Presidents annual message and
the recommendations in his bud
get which followed it.
The annual message on "the
state of the nation" dealt almost
entirely with the European war
and the possible repercussions OF
international affairs upon our
own domestic economy. The
Presidents budget proposals in
cluded recommendations for re-
auctions in appropriations for
many governmental purposes,
particularly in work relief and
farm relief, but advocated great
ly increased expenditures for the
army, navy and air forces.
Out of total estimated expen-
diture of 8,400,000,000 the Pres
ident asked Congress to provide
an additional $1,800,000,00O for
national defense, the largest sin
gle years expenditure for that
purpose in our peacetime history
and the largest single item in the
budget. To provide that amount
and do all the other things that
the Administration thinks should
be carried on would run the cost
of government for the next fiscal
year up $2,176,000,000 above the
estimate tax revenues.
The President proposed, how
ever, that Congress find ways of
raising $3.50, 100000 in new taxes,
which would still leave deficit
of $1,716,O00,000 for the year.
That would necessitate borrowing
more money, and if the program
worked out exactly as planned
the national debt at the end of
the year would be within very
few million dollars of the statu-
tory limit of IS billions.
Differences of Opinion
The points at which the sharp
est differences between the Presi-
dents ideas and those of many
Senators and Representatives of
both parties occur are, first, the
relative Importance of the de-
Tense program and international
affairs generally by comparison
with our own internal economy;
second, the political undesirable
ty of increasing taxes in an cleo
ton year; and third, the inexpe-
diency, for the same reason, of
reducing farm benefits.
The question of what the Unit
ed States is going to defend, and
against whom, is being asked by
critics of the national defense
program. More than four billion
dollars for military preparedness
has been appropriated in the past
two years and the enlargement
of the navy, the army and the
air force is we'll under way.
There is certain to be sharp de-
bate on new items in the Pres
ident's defense program.
The present inclination is to de-
fer any consideration of new
taxes until after March Is, when
the income tax returns for the
last year will be available as a
basis for calculation. So far the
estimates of tax revenue are
largely guess work. The last thing
most members of either House
want to do, if it can be avoided,
is to increase taxes. And the agri
cultural pressure block is pre-
pared to make the political lives
miserable of those who vote for
any curtailment of existing farm
benefits.
Another point in the Presi-
dents message on which sharp
controversy seems likely to de-
velop on Capitol Hill, probably
earlier than on the other items
mentioned, is his request for the
newal of the law authorizing re-
ciprocal trade agreements. This
law, enacted on June IL this year.
It has been bitterly attacked in
the light of several trade agree
ments which are represented as
injurious to the interests of
American producers.
The party politics of Presi-
dental election year figure
strongly in all the considerations
which will govern this sessions
debates and acts. Part of the op-