OCR Text |
Show HUGE WAR DEBT IS COMING DUE How to Pay Ott Obligations Puzzles Chairman of House Committee WASHINGTON' ! H Conrom of rontrrecaional leader ability rated by Chairman Kordney. of tha and means ommltle Monday, both In th houa and at tha opninc of l.earinga b) h committee on revision revi-sion of revenue legislation loxo n ;N' ii"M,v Tn mi anl means rommtttee chairman frankly expressed doubt a to whether tha estimate of a four-Ml-llon annual tax lev would he suffi-. suffi-. lent to met the requirement" of th covernment ovr th period of maur-j InK treasury r-ertlflrates and Vi- on notes. A a solution h- advocaiel r-f r-f m.llng lata long term bonds of the erUftaatOg now aggregating $2,350.-000.000. $2,350.-000.000. aa well as of the first laaua of war savings stamps and the Vlc- Adoptton of such a solmloi Mr Fordnev declared. proi.nhl' would enable en-able a reiluriion of taxes below Secretary Sec-retary Houston's estimate of four billion bil-lion dollars. It also, he said, would permit a tax lery for several ycara ufflclent onlv to cover current fiscal needs of th icmeinment and Interest on the public debt and sinking fund operations. w n n i nis(.m i The first witness before the committee com-mittee at the tax revision hearing how-ner how-ner die-ifc-reed with Mr Fordnev on the proposal. In reply to question by Representative Longworth. Republican of Ohio. Thomas Adams, treasury tax expert and economist, said the. program pro-gram of the treasury appeared to pro-sufficient pro-sufficient revenues to take .ire of the maturing obligations ncopl the saving stamps which would be paid through the sale of other Issues of such stamps aa each yearly Issue falls due. He added, however, thatl the treaurv cellmates for taxation could stand no reduction If the pro gram were to oe carried through and the maturing obligations met. POLITICS IN Dl it ( r Politics entered into the discussions J of the methods to be used In paying off the war debt when the roriuniiir. ached the nubjecj. later In the day. ReprescntatU e Garnet. Democrat, Ttx- as. vigorously opposed the Kordney suggestion, sa; lug It meant that th government was 'breaking faith with the people whom M had assured thai it would take up ihe floating debt to make the Liberty bonds retain their pro Dor lel of market alue." To float another loan. Mr. Garner asserted, assert-ed, would materially weaken the quotation quo-tation of the Liberty bond prices. "When we passed these loans bills, and tax measures, we told the people ertaln things." Mr. Garner continued. We surely cannot go back on those s.uirances. It would be breaking faith with the people." I ICE86 lt)l lis i uoo.M l i "Well." Mr. l'o. ey countered. those things wei lag work of the I'cmo- ratio administration. That float- i .1 J sraa the product of the ln.ni-oi ln.ni-oi mtlc administration. Hut Inasmuch .in we have it. It has now became an obligation of the Ropubllcsyi party, 1 and 1 miran to do all I can to get rid of It without burdening our people with taxation. " Discussion of actual tax revision question! by the committee developed an almost unanimity of opinion among ' Ita iiicinhei-s with respect to repeal of the excess profits tax. Dr. Adams, speaking for the treasury, concurred-on concurred-on this point but warned the commlt- : tee that congress shoufct keep In mind difficulties attendant upon collection i of a sales tax. |