Evening star., 1948-01-03
6. 0. P. Leaders
Undecided on
Sizeof TaxCut
Brookings Asked to
Survey Methods of
Running Marshall PIonI
By J. A. Oleory

- ~ ~ 1Soty
Income tax reduction and the
Marshall plan were shaping up
today as the first big issues to be
tackled by the new session of
Congress.
How soon and in what form both
measures will reach the White House
are questions even the leaders are
unable to answer now, however. AS
members began to trek back to
Washington from the Christmas
recess, these developments were
recorded:
Speaker Martin predicted the
House will psas tax cut bill this
month, and some form of European
recovery program before the session
ends.
Chairman Taft of the Senate Re-
publican Policy Committee sug-
gested, however, that Congress will
have to take look" at the Pres
ident's budget. and have some idea
OF the scope the Marshall plan will
take, before the extent of tax re-
ouctlOn Is settled.
Brookings Survey Asked.
Chairman Vandenberg of the
Senate Foreign Relations Commit
tee announced he has asked the
Brookings Institution to prepare a
survey on various methods of ad-
ministering the Marshall plan.
Senator Vandenberg's committee
will be the first to start public
hearings on this momentous issue
next Wednesday.
The Vandenberg move was well
coined by several of his Republican
colleagues, but one, Senator Wiley
OF Wisconsin, thought the survey by
the private research agency should
be broadened to include IAN esti-
mate of how these proposed exports
to foreign countries are going to
affect us at home"
AS submitted recently by Presi-
dent Truman the Marshall plan
contemplates four-year $17,0O0,-
100000 program of aid to 16 Euro
pean nations, Of which $4,000, ,000,0 600
would be needed for the first is
months, commencing April /.
Speaker Martin and Senator Taft
both indicated there is little hope
Congress will go along on four
year commitment. The amount also
is likely to remain an uncertain fac
tor for weeks to come.
Barkley Speaks From Paris.
Senate Democratic Leader Barkley
warned in a radio broadcast from
Paris last night that the Marshall
plan will be infinitely cheaper in
dollars to the American people than
another war which might see the
destruction of civilization ITSELF"
Senator McGrath, of Rhode Is
land, chairman of the Democratic
National Committee, declared the
Marshall plan has kindled "a new
flame of hope in the freedom loving
nations overseas" but said there is
grave danger that a lasting peace
may not be possible in our time"
Both spoke on program arranged
by Democrats to build sentiment
for the Presidents recommendations
of foreign aid and control of infla-
tion at home.
Meanwhile, neither the House nor
Senate expected to get beyond the
organizing stage next week. The
session starts at noon Tuesday.
There will be frequent conferences
by party leaders the rest Of the
week. The President will send up
his "State of the union" message
on Wednesday, his economic report
on Friday, and his all-important
budget message the following Mon
day.
1--WE have got to do something for
European recovery-there is no dis
pute about that" Speaker Martin
said. 1.-The question is what is a
proper amount, and how can it best
be administered"
Opposes Long Commitment.
The Speaker made it clear he
thinks Congress will want to handle
the Marshall plan on one-year-at-
a-time basis. Pointing out that one
Congress cannot bind its successor
in any event, Mr.. Martin said he
has some doubts whether it would
be fair to the rest of the world to
give the impression you were prom
ising something for four years when
you might not be able to deliver"
On the question of how to ad-
minister the Marshall program, the
Speaker indicated his sympathies
lean toward the Herter plan. Repre-
sentative Herter, Republican Of Mas
sachusetts has proposed BIZ
partisan board of eight, rather than
a one-man administrator, or State
Department control.
Senator Taft is equally opposed
to State Department control, but Is
still studying the exact type Of
agency he would favor. The Ohio
Senator has suggested that one
agency should control all exports
whether to Marshall plan countries
or observation-disclosures Of their i'm
pact on the initiation problem at
home.
In predicting House action this
month on an income tax cut, the
Speaker also put the COP leader
ship on record for another drive to
cut Federal expenses. He said the
extent of tax reduction will depend
on how much cooperation Congress
gets from the administration in
seeking to eliminate nonurgent ex-
penditures.
He ssid the Republicans will take
the position that tax reduction now
is absolutely essential" to increase
the take-home pay of workers and
to encourage expansion of produc-
ton to the point necessary to carry
public debt Of more than $780,
O00, 900 900.
e Fal7 n