U.S.A. BUDGET

Hokitika Guardian, 26 March 1932, Page 5

U.S.A. BUDGET

DEFEAT OF BILL

NATIONS CREDIT AT STAKE

(United Press Association —By Electric

Telegraph.—Copyright.)

WASlll XGIV.n. March 21

The defeat of the bums Levy Bill in tin- House by the Insu-g-.mt Go; 'itu 11 over the support of both t!.e !)•-• mocratie and Republican ieadet.■-iii,i, practically wrecks the care l ally panned Bopai'tisan Revenue Hill, designed to balance the enormous deficit m the budget. ' , It ls estimated that it would have raised 460,000,000 dollars. This loss together with losses through various minor amendments leaves the Bi.l approximate 365,000,000 dollars short of the estimated 1,906,000,000 dollars needed.

The lenders of the Ways and Means Committee, which drafted the measure were nonplussed at first, and of iered to turn the fiscal situation over to the Insurgents to meet it as best the v could, but later reconsidered thendecision and decided to call a committee meeting to consider seme new means of raising revenue. A vote followed a protracted and acid debate in which the opponents of the tax HitecossfulliV urged higher income tux on large incomes, and other “soak the rich’’ measures, Some insisted that it was unnecessary to balance the budget, and insisted to issue treasury certificates, President Hoover is reported to be keenly disappointed. Ho believed that the balancing of the budget was imperative to preserve the nation’s credit.

Anti-prohibitionists took advantage of the situation and announced press action to legalise 2.75 per cent beer, calculated to raise 350,000,000 dollars.