Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-02
Treasury Officials
Conceln0ver Initiation
Threat Disclosed :
HiQher Tuxes Forecast BY
Moreenthou in Testimony
Before House Committee
=: the Associated Press.

Before House Committee
2: the Associated ffess.
Mounting concern Of Treasury
omcials over the danger Of imitation
and the need for increased taxation
ana Government borrowing to re-
duce the public's purchasing power
was disclosed today by the House
Appropriations Committee.
In testimony before subcommit-
tee In connection with the depart
ments financial needs for the next
II months, Undersecretary Of the
Treasury Daniel w. Bell declared:
There has been = substantial
price rise. I do not think It has
been enough to materially hurt any
body. bat I think the basis IL here
fdr tremendous imitation.
you have al this money soins
into the hands Of individuals, esti-
mated ct something Ike $50, 900, :
Co., 900 during this calendar year
and believe that only about Sl5,-
90. 900 l. estimated Is the
amount that viii be taken away In
personal taxes"
lis Dil1iea b Spend.
This" he explained, means that
people Will have tll5, 900 ,000, 900 to
spend and -" II there is only
80, 000. 900 900 worth Of goods and
services available, then there Will Be
about, ~, oooo, ooo. 900 worth Of extra
purchasing power which must be
saved. II people try to spend 1t the
pressure on prices viii be ire
mendous."
Mr.. Bell appeared before the COM
mittee January 10. Speaking before
the same committee in executive
session December 10. Secretary OF
the Treasury Norgenthau had this
to ray about imitation after predict
ine that the national income would
reach . new peak this year:
4 do not zee any danger Of rum
away imitation right now. think
the thing i under fairly good con-
troll, but It u something you have
to watch every single minute. You
cannot rest 4 minute on that"
A the hearings On the hrst Of the
spending measures opened, the tram
script reelected deterniinAtton Of
committee me1hbers = weigh care
fully the neoe1sity for each allot-
ment In their drive 10 eliminate
non.essential Government civilian
expenditures.
TT would b : refreshing novelty.
most encouraging to the country, !"
Representative Ludlow, Democrat,
Of Indiana, chairman OF the SUBJ
committee, told Mr.. Morgenthau, ~
some Of the oflcials when they come
before u would vary the precedents
! little by telling W not 70 much
Of the appropriations which they
think they must have. but the ap-
preparations which they think they
can manage to do without"
lasresnthau Ferecaats Highsr Taxes.
Mr.. Norgenthau said the Treas
,uy believed that We win have to
have higher taxss," adding. I'VE have
not even begun 70 approach the tax
burden Of Canada." Later, In re-
Spouse 70 q question, he Said that
the personal income taxes In Eng
land and Canada were about
deubls" tisoss in this country.
Mr.. nell tod tl3e committee that
the ftrst thiny that should Be done
to prevent tn1lAtion - 10 get every
dollar that you can In taxes. Then
- think NJ should borrow as
much Of the funds that have to
be borrowed from the current earn
inss Of the people and that b what
We are trying to do. There
may be other things ~ win hAve
to do, such as rationing and the
freezing Of prices. That comes
under Director ByTnes, and I under
stand thsy are taking decisive steps
In that direction"
Mr.. Ludlow dug hack into the
committees recerds Of December.
1870, to recall that Mr.. Norgenthau,
In discussing the statutory national
debt limit, had been asked what 1t
would be and had replied that he
would consider that a. We went
along, and that ct ~, 40 900 900 you
would take another look ct It,"
Referring to Mr.. Bells testimony
that the gross public debt 1t the end
OF the present fiscal year would
reach 4l3e. ooo. 900 100, Mr.. Ludlow
asked Mr.. Norgenthau for his opin-
lon on what would Be 4 safe limit. ("
The only answer I could give" the
Secretary responded. and 1t u not
IN answer TO your question, Il this
that Ne have . war On our hands and
We must win 1t. and under thoee
conditions the debt-ltmit question
win have to take . back seat"
IT We lost the war" agreed Mr..
Ludlow, 1T would not make much
difference what the debt limit was. .
We win win the war" said Mr..
Norgenthau.