The Republican. [volume] (Oakland, Md.) 1877-current, 1950-02-02
Along the Potomac
to Washington
by j. Glenn Beall
ConCrc slan Sixth District

Federal authorities have announced
that Cove mmeut owned surplus
potatoes arc being given away free.
Plans are underway for the free
distribution Of dried eggs, powdered
milk, some meats. and other surplus
foods now part of the 3l2 billion
dollars worth Of food products pur-
chased and owned by the Federal
Governments Southern Legislators are
demanding the enactment of a bill for
the benefit Of cotton producers at an
estimated cost of from $l.5 billion to
$25 billion. In the meantime farm
prices continue their downward trend
while farm commodity SURPRISES
grow.
When Admiral Louis Denfeld was
suddenly discharged as Chief of
Naval Operations, following his
criticism Of Truman Administrations
defense policies before the House
Committee on Armed Services last
fall, it was denied that he was being
kicked out because of his testimony
but only for incompetence and be-
cause his term of office had expired.
In the Senate last week photostatic
evidence was submitted showing that
Admiral Denfeld had been reap
pointed and recommissioned as Chief
of Naval Operation on September IA
1910, with the Commission signed by
both the Secretary of the Navy
Matthews and President Truman. for
period of two years from that date
The Secretary Of the Navy had pre-
viouSly testified Denfeld had not been
recommssioned The Senate was
shocked by the revelation and held up
the confirmation of the New Chief
of Naval Operations Admiral Forrest
S herman until after Secretary
Matthews made an explanation. The
next day, Admiral Denfeld requested
retirement from the Navy, March LIST,
after stating he had been reap
pointed and commissioned by the
Navy Secretary and the President
last September. Secretary Matthew's
explanation was that he was unaware
that Admiral Denfeld had received
his commission since it was given to
him by an aide of the President be-
fore it was returned to the Secre-
tary's office
There is a move afoot in the Ad-
ministration circle and on Capitol
Hill to increase Federal insurance on
bank deposits from the present $4,000
limit to $4,000. Building and Loan
deposit guarantees are expected to
remain at $4,000 figure, however.
In message to the Congress last
week, President Truman suggested a
reduction of about $3.50 million a year
IN wartime excise tax, providing that
loss Of revenue is made up through
plugging loopholes in present tax
laws, and that in addition Congress
increase Federal taxes by an addition
al one billion dollars a year on
corporations, estates and gifts The
President did not specify just what
excise tax rates should be reduced or
how much. Neither did he suggest by
what percentages present corporation.
estate and gift taxes should be in
creased. Boiled down, Mr.. Truman
proposes to trade $3.50 million a year
excise tax cut for the same amount
Of tax revenue elsewhere, plus an ad-
ditional billion dollars a year in new
taxes.
When the President failed to
recommend an increase in Individual
taxes, but proposed that an additional
billion dollars year be raised
through increasing corporation, estate
and gift taxes, many so-called liber-
ais cheered loudly, arguing the people
themselves would not be required to
assume any of the increased tax bur
den. Such an argument is silly, of
course, for increased taxes on corpo-
rations always mean higher prices to
the consumers on the products manu-
featured by such corporations-an
in the end it is the general consum-
ing public that always pays all taxes.
According to tax experts serving
the Ways and Means Committee of
the House, this year Federal, State