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Show THE LEIII SUN. LEIH. UTAH Bruchart't Washington Digest Home Folks Fed Up on War Talk; Want to Know About Tax Problem Considerable Transition From Interest in European Affairs to Domestic Concerns on Part of Public Noted; Treasury to Borrow More Money. By WILLIAM BRUCKART WNU Service, National Tress Bldf ., Washington, D. C. WASHINGTON. Observers, here In Washington, have a little way of their own by which they are able to forecast the trend of public thought and interest. It is a method meth-od that was developed solely from experience. Most of us who attempt to serve you, outside of Washington, Washing-ton, as eyes and ears have learned to watch the demand for speakers and subjects upon which public men are asked to talk. It is not an infallible in-fallible method, but it is usually correct cor-rect The only fly In the ointment is that we must learn to distinguish between the propaganda preachers and the legitimate desires of groups to have government questions explained ex-plained to them. It is to be noted here, by way of review, that three months ago the bulk of the speeches by men from Washington had to do with war, our chances of getting involved, neutrality, neu-trality, etc. There were interspersed inter-spersed with these, of course, the usual truckloads of guff from Secretary Secre-tary Wallace and the other self-appointed self-appointed spokesmen for agriculture, agricul-ture, rinds and cracklings from Secretary Sec-retary Ickes, and about the usual quantity of mouthlngs from the "superior "su-perior minds" whose owners are greatly concerned in development of culture, liberal thinking. But it was about the war and related subjects sub-jects that most people wanted to know. The scene is changing now; indeed, in-deed, a considerable transition already al-ready has taken place. Home folks are getting fed up, at last, and are desirous of knowing more about home problems and what the government gov-ernment intends to do about them. It is a trend most pleasant to contemplate. con-template. There simply can be no doubt about the fact that if the people peo-ple of the United States forget about that war In Europe and pay attention atten-tion to their own business, we will be able to stay out rather easily. Comet an Awakening to The Problem of Taxation With this background, then, let me call attention to the number of persons who appear at long last to have awakened to the problem of taxation federal, state, county and city, Obviously, when there is an interest in taxation there Is a paral lei interest In what government does with the money taken from its citizens. citi-zens. This interest surely exists now to a greater extent than at any time within recent months. More and more inquiries are being received, re-ceived, more and more requests for discussion of the subject are reaching officials in Washington. And h my Information from outside sources be correct, there Is a slmi lar interest being shown In the states and cities. In this period of changing inter est, Secretary Morgenthau,, an nounced that the United States treasury is prepared to borrow more money. In the next two months, according to the Secretary, the treasury will borrow an add! tional half a billion dollars. It will refund something like a billion and a quarter, also, but that process is imply trading new bonds or notes for old ones that fall due. The bor rowing Is "new" money, in the sense that new bonds will be sold and the proceeds used by the treasury to meet expenses, and naturally the national debt will be Increased by that amount It Is well to remem ber that as of November I, the public debt was $41,139,971,217, and that there are several other billions of bonds issued by such agencies as the Reconstruction Finance corporation, cor-poration, the Home Owners Loan corporation and debts guaranteed by agencies like the Federal Housing Hous-ing administration, for which the treasury is morally, U not actually, responsible. It Is not curious, therefore, that folks are asking each other: where is this spending going to stop? or, how are we going to pay off that debt? or, what are our taxes going to be In the future? Tax Receipts for Nation Astounding in Magnitude I am indebted to the federation of tax administration for some totals to-tals of tax receipts for the nation that are not only astounding in their magnitude but startling in the implications im-plications they give. The statistics disclose that the American people paid $14,811,000,000 in taxes in 1938. This money was collected by the federal, state, county coun-ty and city governments end some odds and ends of special taxing districts which levied taxes for especial es-pecial purposes. Of this amount the federal government collected $6,034,000,000; state governments collected $3,857,000,000, and local governments took a toU of $4.9C0,-000. $4.9C0,-000. 000. One of the new taxes the tax on payrolls to maintain pensions and unemployment yielded In excess of $1,500,000,000. or almost one-tenth of all of the money taken by the tax collector. Its total seems to give substance to the complaint that this tax Is a tremendous burden on any one who hires workers. The payroll pay-roll tax, according to the administrators' adminis-trators' analysis, was the third largest larg-est of single items of taxation only the property tax and the Income tax brought In more money for the spenders of federal, state or local governments. Property taxes, levies on everything every-thing you own, your house or farm or horses or automobile, paid a total to-tal tribute of $4,743,000,000. If you are good at figures you will find that sum to be 32 per cent almost one-third one-third of all of the taxes paid by the United States last year. Income taxes ranked second In the sums produced for governmental government-al use. The income taxes laid by federal, state and city governments supplied $3,242,000,000, and that is 22 per cent of the revenue. Another Croup Include The Concealed Levies But there is another group of taxes a long list of items that Include In-clude most of the sneak-thief taxes, unseen and concealed levies that really is bearing down. These general gen-eral and special sales taxes, federal stamp levies, excise and license taxes were responsible for slightly more than one-fourth of all money paid into treasuries of government This money came from tobacco, liquor, gasoline, sales taxes of various vari-ous kinds which you saw only by close examination or could not discover dis-cover at all, licenses, etc. The gasoline tax was the largest revenue rev-enue producer. Federal, state and local governments obtained $081,-000,000 $081,-000,000 because most of us burned up gasoline through use of the motor cars. Liquor revenue amounted to $838,000,000. It is said by some authorities that this type of tax has about reached its peak. To increase it more will mean that bootleggers can begin to operate once more, because be-cause added taxes will send the price of liquor to a point where bootlegging boot-legging becomes profitable. Such Is not the case with the other taxes In the group; you pay them and like it All in all, the administrators' analysis shows ten general groupings group-ings of taxes throughout the nation, and It is interesting to note that each of these ten major Items Is used by more than one level of government. gov-ernment. That is to say, the federal fed-eral and state governments will be found using Income taxes; states and counties and cities will be found using some types of sales taxes, along with a similar tax by the national government, and aome of the other taxes may be found employed em-ployed as revenue producers by two or all three of the levels of government govern-ment Which brings us to a recent speech made by John W. Hanes, under-secretary of the treasury. Mr. Hanes arrived at a conclusion that only a general increase in business would provide enough income for all of the tax eaters. He suggested that there were few, if any, untapped sources of Income, insofar as the federal government is concerned. And other students have talked frankly about the similarity of tax problems among the federal, state and local governments. Cut in Personal Exemptions Would Add Only 0 Millions The school of thought that has advocated ad-vocated broadening the base of income in-come taxes by the federal government govern-ment by reducing the personal exemptions ex-emptions from $2,500 for married couples and $1,000 for single persons, per-sons, was shown by Mr. Hanes to be somewhat ignorant of facts. He pointed out that an exemption of $2,000 for married couples and $300 for single persons, instead of the present limits, would add only $60,000,000 a year to the national revenue. That is not a good drop in the bucket If all of the present Income tax amendments that have been mentioned were now in force, the total taxes they would yield would be only about $250,000,000, according to Mr. Hanes. Hence. Mr. Hanes said, with reference to the federal government: "You, the American public, have the final control. Demands from back home upon the Congress for more and more federal expenditures, expendi-tures, tor less and less needed proj ects, are at least a partial source of difficulties. "We have developed our countrj $10,000,000,000 appetite with a $5,000,000,000 pocketbook. I think our problem Is not so much when we balance our budget as where. In other words, how much federal expenditure are you going to demand de-mand and how do you propose that the government raise the funds?" I am hoping that the apparent trend toward a public consciousness of the government's financial conditionwhether condi-tionwhether that government be national or state or local will expand ex-pand and begin to roll like mountain flood waters. WEEKLY NEWS ANALYSIS BY JOSEPH W. LaBlNE Dutch-Belgian Arbitration Bid Lost in Beer Hall Excitement; Fear of Nazi Invasion Mounts (EDITOR'S NOTE When opinions are expressed In thevse columns, they are those of the news analyst and not necessarily of this newspaper.) Released by Weitero Newspaper Union-- III t f i ? Til -V '' STEEL MILLS BLOSSOM AT GARY, IND. Some industries expand; neutrality stifles others. TRADE & INDUSTRY Repeal of the U. S. arms embargo, which keeps American ships out of combat zones and allows belligerents "cash and carry" rights, not only set off a partial business boom at home but also brought major repercussions reper-cussions in world diplomatic, trade and maritime circles. A survey by the Northwestern National Life Insurance In-surance company showed luxury and semi-luxury goods began moving mov-ing swiftly in September, but Federal Fed-eral Works Administrator John Car-mody Car-mody spiked any boom hopes: Only 500,000 of the 9,000,000 unemployed can expect new jobs. There was cautious expansion in U. S. industry, where building awards for October totaled $49,910,-000 $49,910,-000 against $12,814,000 a year ago. Many firms announced stock dividends divi-dends payable in December. Railroads,' Rail-roads,' which coupled their expansion expan-sion with a plea that they might be permitted to operate without government govern-ment interference in times of emergency, emer-gency, were offered a new recovery program by r' 1 Jesse Jones, federal loan This plan, used first by the Boston and Maine line, calls for postponin g debt payments pay-ments and reducing an- MAX TRUITT nual interest "Completely sound." charges through a refunding process to be financed by Reconstruction EUROPE: Cause Celehre? "This," said Prime Minister Chamberlain, "is not a state of war but a state of siege." He was not far wrong. The French claimed nine of their U. S.-made planes had downed one-third of a 27-plane German Ger-man force over the western front. There was also a mysterious battle in the North sea from which the jV 1' - . , - .a v -. WILHELMIN. AMD LEOPOLD Their peace exploded. Ark Royal reportedly limped home with a captured vessel. But as usual, the biggest war news was made far from the front Some 20 Nazi divisions stationed on their frontiers worried Belgium's King Leopold and The Netherlands Queen Wilhelmina. Moreover, they heard rumors that Adolf Hitler would Invade on November 15, Claiming as an excuse that the allies would do likewise if Germany didn't Invade first Though steadfastly denying any German "ultimatum" for a statement state-ment of their positions, the king and queen held all-night consultations with their foreign ministers. Re-sulti Re-sulti A peace appeal was dispatched to all combatants offering Belgian-Dutch Belgian-Dutch mediation services. Britain rejected it politely. Fuehrer Hitler was less polite. Not waiting to reply directly, he hastened to the beer hall at Munich where his notorious putvh took place in 1923. There, on Naziism's sixteenth birthday, he scorned peace: "There can be only one victor that is we." Hardly had Hitler left the beer '" i r : Finance corporation. The government restricted foreign commerce in some quarters and expanded ex-panded it in others. Approved was a new reciprocal trade pact with Venezuela, "freezing" tariff schedules sched-ules on exports of wheat flour, oatmeal, oat-meal, lard and lumber. In return, the U. S. will reduce import taxes 50 per cent on Venezuelan crude petroleum. Meanwhile, an inter-administration squabble flared over the U. S. maritime commission's transfer of more than 40 ships to foreign registry regis-try as a means of avoiding the ban on American shipping in belligerent zones. Secretary of State Cordell Hull objected, not because the step was illegal, but because it would violate the integrity and spirit of the neutrality law. Commented Maritime Commissioner Max O'Rell Truitt. "I don't see any element of a dodge at all; I think it's a completely com-pletely sound, bona fide situation all around." President Roosevelt finally final-ly decided against the transfer, promising to change his mind later if tension eased. Meanwhile, C. I. O.'s maritime union estimated 10,-000 10,-000 U. S. seamen were thrown out of work by the neutrality provision banning nationals from combat zones. (At Washington the President consulted A. F. of L.'s William Green and C. I. O.'s John Lewis on this problem, prob-lem, also discussing the chances for labor peace.) Trade with belligerents zoomed. Even Switzerland, minus a navy, chartered two ships. The state department de-partment warned shippers to de mand cash from their foreign customers, cus-tomers, and the cash was apparent ly forthcoming because Britain's parliament rushed through a billion dollar fund to carry on the war. hall before a mysterious blast in the empty attic upstairs sent its heavy ceiling crashing on the hangers-on who had stayed behind. Next day, while the Nazi press railed at Jews and the British secret service as "instigators" of the plot, the Wil-helmstrasse Wil-helmstrasse offered a $200,000 reward re-ward for capture of the perpetrators. perpetra-tors. While seers wondered if the Munich explosion might not prove another cause celehre like Sarajevo or the Peiping bridge incident pro-Hitler sentiment began crystalizing in Germany. Dead as a dodo was the Belgian-Dutch peace plea; in fact the Dutch opened their dykes in self defense following border clashes that smelled suspiciously like those before the Polish invasion. CONGRESS: Committee Time Home to the stamping grounds went most senators and congressmen congress-men when the special neutrality session ses-sion adjourned. But between sessions ses-sions is a fine time for committee hearings. Still in session is Martin Dies' un-Americanism .group, bally-hooing bally-hooing for another appropriation. Two other groups, working out legislative legis-lative suggestions for next January's Janu-ary's term, are: House Tax Subcommittee. Opening Open-ing its hearings under Tennessee's Rep. Jere Cooper, the committee talked about broadening income tax bases. But there was a disinclination disinclina-tion to offer concrete proposals. It was announced final determination of a program will await the opening of congress. Two official reasons: (1) The treasury is studying taxes, soliciting suggestions from business and industry; (2) National defense needs for the next fiscal year are not yet known. Besides, the committee com-mittee is wondering about taxes on excess war profits, not" knowing where to turn. Equally important how would tax revision be received in an election year like 1940? (At Washington, Secretary of the Treasury Morgenthau told reporters any initiative for raising the V. S. debt limit tboti H5j00.000j)00 must coma from congress, not from himself or the White House, fresent debt: About $4ijmm.ooo.) NLRB Investigating Committee. Deferring hearings until its Chairman Chair-man Howard Smith (Dem.. Va.) gets well, the house labor committee commit-tee found new kindling for its campaign cam-paign against the labor board in a new strike technique, the "slowdown." "slow-down." Defined Ohio's Rep. Harry Routzohn: "The slowdown is el-most el-most the same as the sitdown." Its origin, he said, could be traced to the northwest lumber camps, thence to the recent Chrysler strike. AGRICULTURE: Cotton and Wheat Three items made news for cotton cot-ton and wheat farmers as November got underway: (1) With 10,100,000 bales of sur-plus sur-plus cotton stored under govern-ment govern-ment loan, and -vith an 11,845.000-bale 11,845.000-bale crop (slightly less than 1938) forecast for this year, the agriculture agricul-ture department announced loans based at 8.3 cents a pound on seven-eighths seven-eighths inch middlings would be available to 1939 growers who planted plant-ed within their acreage allotments. A week earlier the loan program seemed stymied by increased cotton cot-ton consumption thanks to the war. (2) The bureau of agricultural economics forecast the same wheat acreage for 1940 as for 1939, i e, B4 (500.000 acres, which would pro duce about 760,000,000 bushels of spring and winter wheat But next year's yield will be under par unless un-less unusually favorable weather comes along. Reason: Drouth has already damaged much seedea winter win-ter wheat beyond recovery. (3) Closing its first year, the fed eral crop insurance corporation was sad. Having taken 6,769,120 bushels bush-els of wheat as premiums from 165,- 551 farmers, the corporation naa claims from one-fourth its custo mers. Indemnities paid, totaling 9,461,730 bushels, brought a loss oi about $1,885,000. RUSSIA: Unhappy Birthday Twenty-two years ago a bloody revolution gave birth to the U. S. S. R. Only a month ago Soviet Premier Viacheslav Molotov showed Russia's strapping maturity by denouncing de-nouncing President Roosevelt's intervention in-tervention in the Finnish-Russian scrap. When Moscow began its three-day anniversary celebration, Premier Molotov again slapped the TJ jfAf, ft3 v A i HANS THOMSEN AND WIFE Most radiant of all. V. S.: ". . . in the case of certain countries neutrality only serves as a mask to conceal their activities activi-ties ..." On that same day in Washington, the Soviet embassy decorated Lenin's Len-in's statue with red roses, assembled assem-bled Scotch whisky and Russian soda, green sherbet in crushed raspberries, rasp-berries, and cakes smothered in rum sauce. Awaited were the guests to , help Charge d' Affaires Dmitri Chuvakhin celebrate. But he was embarrassingly disappointed. Absent were all Supreme court justices, cabinet members, senators and high ranking state department officials. Only China, Turkey and Ecuador sent their diplomats. Only prominent New. Dealers: NLRB's Edwin Smith, SEC's Leon Henderson, Hender-son, and Mrs. Thurman Arnold, wife of the assistant attorney general. gen-eral. Most beaming visitors: Hans Thomsen, German charge d'affaires, and his pretty wife, accompanied by four staff members. Next day observers noticed Franklin Roosevelt Roose-velt had sent the U. S. S. R, no message mes-sage of congratulations. POLITICS: No Ham, No Eggs The tumultuous 1930s have brought an unprecedented thirst for security secur-ity taking form in unorthodox pension pen-sion schemes. Most schemes were born in California, like Townsendism and EPIC. In November's elections two more panaceas went down to defeat de-feat but there were signs many a politician might follow them. Ohio's Rev. Herbert S. Bigelow promised to "continue the fight" for his badly snowed-under plan to give an persons over 60 a p e n,s i o n o f $50 a month via state income in-come tax and a levy on real estate. In Califor-n Califor-n i a died the scheme to give $30 every ev-ery Thurs eiiwiMjiijwjiiij.uiL in iii.iiinjjjun i.i i ii x 3 . i van,... ; : ( No- ! : . h ; GOV. OLSON Soothing uords. day to everyone over 50. It even trailed in Los Angeles county, its birthplace. One reason: Gov! Culbert Olson had fought ham-and-eggs by promising "useful and productive pro-ductive employment" to all who wanted it as a reward for defeating the plan. As pension leaders began a recall move against Mr. Olson, the governor soothed them: "This defeat doesn't mean that California is against the further development of sound social security . . . Other results: In New York, voters ignored Mayor Fiorella LaGuardia's protest by legalizing pari-mituel race betting. Tammany won ruost local elections, while Republic wis won a single upstate eongressioial race. In Kentucky, New Dealer Keen Johnson succeeded Sea A. B. Chandler to the governor's chair In Pennsylvania, Boies Penrose II a Republican, lost ur.gressional contest WHO'S NEWS THIS WEEK r ' Wi lin i .nil i ' By LEMUEL F. PARTON NEW YORK. Somebody waa always al-ways turning in a riot call when Igor Stravinsky'! "Fire Bird" and "Sacre du Printemps" were first ... - - played. He 'Wild Composer wal Earl Spears Harvard Browder of .the salons and Professorship musical conservatories, con-servatories, but now he's as respectable respect-able as Nicholas Murray Butler, as he takes his post as professor of poetry po-etry at Harvard. As he writes his fourth symphony, he enjoys full and complete academic sanction for what were once considered the wild vagaries of his compositions. In Russia, his parents wanted him to be a lawyer. Rimsky-Korsakoff Rimsky-Korsakoff was the Pied Piper who lured him from law books to outlaw music, but who unleashed un-leashed his genius and himself profited as Stravinsky became one of his most knowing and gifted Interpreters. The frail person of Professor Stravinsky, Stra-vinsky, as he may now be called, has been shaken and racked by the torrent of his genius, and every so often he has found it necessary to take time out in Switzerland for repairs. re-pairs. But, at 54, he still has furious vitality and Is still at mid-way In his creative career. With a sharp pencil he spears superaural sounds. Marshaling them in a symphony, he looses demons, to slay them with his baton. This demoniac- dissonance disso-nance caused riots In France when his compositions were first produced. It took quite a few years for discerning critics to discover that he "planned It that way," and that there was law and order in bis music. MUCH is being written currently in comparison of the intellectual intellec-tual climate of America today with that of the immediate pre-war pe- Vet Steel Maker J Lugens G. Debunks War as Grace, presi-e presi-e t o cm. dent of the Source of Profit Bethlehem Steel corporation, offers something possibly worthy weighing in this balance bal-ance in his vehement repudiation of any desire for war profits. "We don't want any war to inflate Bethlehem's business," says Mr. Grace. "We prefer peace. We are in a position to be war baby number one, as in the last war, but I can tell you that our directors and associates don't want that kind of business. I'd like to see the war stop today. to-day. Bethlehem would be better off If It did." In contrast are the words of another an-other great industrialist, now dead, who, at a New York luncheon club in January, 1917, spoke as follows: "America has come of age. Its ships cannot be driven from the seas; its citizens will go wherever their trade or business leads them. No insolent challenge to our enterprise enter-prise will stay us in our peaceful pursuits whenever and wherever we choose to go. And I say to you that our great business establishment will remain world business for whatever what-ever profit may legitimately accrue. It is not only our right but patriotic duty to seize opportunity to maintain main-tain the full solvency of this nation." na-tion." Mr. Grace, as president of both Bethlehem Steel and the Bethlehem Shipbuilding corporation, corpora-tion, had special charge of all production of cannon, armor plate and munitions during the World war. Last summer, he rounded oat 40 years with Beth- . lehem, one of the great steel-masters steel-masters of the country. After his graduation In electrical engineering en-gineering at Lehigh university, his first Job at the company was operating an electric crane. He became general superintendent superintend-ent manager and a director in 191L He became 1913. g. b.u,uv feU He is 63 years old. COMPARISONS are dangerous. aw? Would "P" Walter A. Wood, wearing the colors of the American Geographical society, has Intrepid Climber romt "way nr n . . wlth the Maps Peaks of mountain- Elias Mountains c 1 1 m b 1 D TT- , weepstakes. H. currently reported achievement h mappag the peaks of the Elias mountaui range in the Yukon territory terri-tory caps a list of hazardous assign-menu assign-menu of tte last six year,, in most oi which Mrs. Wood has shared. Last March, he led several companions Dp a 19,600-foot peak tte A'Pe Jungles of the Sierra Si-erra Nevada de Santa Marta range In Colombia. eaS'?!' "Potion to hat J5 d fa 1333 Mf- W01 fast?,TSed many Countries. i Ue for A"- 0D mearch missiM tiet Amencaa Geographical so- lC F.atur.-WNT, S.rvlc.) These Dutch D 41 ital Pattern 6175 Dolls are oluo . When they work up as quickly those (thev'r , . ' , j lwu pieces with band to round the head) Z want to keen Pattern 6475 contains iVft? dolls and their clothes; mate J To obtain this pattern send cents in coins tn Th c..u... cle, Household Arts Dept 2a 5 iiui ou, iMew xonc, n. Y. Please write your name, t dress and pattern number pfe HOUSEHOLD QUESTIONS When Glass Breaks A hani! of moistened absorbent cottom pick up bits of broken glass out endangering the fingers. Removing Odors. Odors can : removed from bottles by rinsL-with rinsL-with cold water to which i lit. dry mustard is added. Care of Electric Cord. Do:, twist, bend or tie the so-caEf cord attached to your electric ir: It is not a cord, but two buu of wires. e House Plant. The phillodendr: or devil's try is a fast grower ari 13 a most satisfactory plant grow in vases on a mantel may be grown in earth or wat! Restoring Leather Bindings, Equal parts of milk and white egg beaten together will fresh leather bindings. Rub on gee: with old flannel. Polish with i old silk handkerchief. t Using Celery Tops.-Celery tc dried in the oven and then rutt through the fingers to a powc; make an excellent flavoring I soups and stews. They will for months if stored in an aii4 jar or tin. COfiSTIPATEl! QwCrowdiBgil bloatmc seemed to crowd mTb ,. lajA.lp.d right i ar. Now I f bananas, pie, nft li r.,7k better." Mrs. MDi '" ..T jib-I happen when you ars tj& gi Accumulated waste. SweU j pJV creea on nerves in th digev' T. bUD: Partly digested 'P'TZi forming (3A8, often bnnging ea '"fZ indigestion, and h" untJyou sometimes SfP '"r??B JlCTfc pre. double relief with DOCBU, GA3 almost t once. I' h less than two hours. No P1PU en acta, juss quic Sold at ail drug m j i. lVfTnrtS Itewaru ij It never will rain roses; M we want to have more w J must piani more Eliot XVHEN kidney, funon. VY you suiter a ""a" .vmSI with dizziness, burning, - $ j night, when you feel 11 upset ... use , poor Doan's are espeoa "V J J working kidneys. Vs are used every year. IWY if, mended the country over. noJghoon . -that will sare too i dollar will Xd youfaUtoreadcarehT regularly the advert , local mercn"" WNU W IN THISJ |