Evening Star Newspaper, March 14, 1933, Page 6

5 ; A—b " . JTHE EVENING STAR, WASHINGTON, RAINEY SAYS TAXES WILL BE CURTAILED Forum Speaker Voices Hopes Reduction in Pensions Will Be Temporary. The budget is gotng to be balanced “without resorting to additional irritat- ing taxes,” Speaker of the House Rainey emphasized last night. In an address in the National Radio Forum, arranged by The Star and broadcast over a Nation-wide network of the National Broadcasting Co., Mr. Rainey said that “the people of this country have been taxed all they are ‘willing to stand.” ‘The Tlinois Democrat, who just came to the Spea¥wship, discussed the meas- ures undertaken in this new session of Congress to meet the emergency, and predicted that “we will in the near fu- ture win the economic battles in which ‘we are now engaged.” Hopes Cut Will Be Temporary. In this connection, he voiced the hope that the cut in pensions and compensa- tion which the President would be em- powered to put into effect under pending legislation “will be temporary.” Almost & billion dollars’ worth of Gov- ermment obligations soon must be re- funded, Mr. Rainey said, but he added that this will be accomplished without trouble when a balanced budget makes 1t possible to do this at reasonable rates. The Speaker also pointed out in a discussion of the banking situation that it is to be expected some banks will not be reopened immediately because of the steps that must be taken before they Tesume operations. That, however, does not mean that they are not sound, he emphasized. - ]'I‘he text of Speaker Rainey's address follows: “The problems ahead of the President and the Congress in this extra session look serious indeed. We are compelled in a few days to refund almost a billion dollars’ worth of Government obliga=- tions, and we have only about $50,000, 000 in the Treasury, and we have con= siderably less than $50,000,000 in the entire Federal Reserve system. Today the Federal Government is running be- hind at the rate of six or seven thou- sand dollars a minute and our Federal deficit is again assuming enormous pro- portions in spite of the new and irritat- ing taxes imposed earlier in the year. “There are 10 or 12 million unem- ployed and the buying power of farmers and of others has been practically de- stroyed. Our factorles ere idle. Our foreign trade has fallen off alarmingly. ‘The receipts of the Government from all possible sources have decreased 40 or 5o p';;" cent. - “The situation looks gloomy, indeed, but we have already taken, under the present administration, the initial steps ‘which look toward a complete economic Tecovery in the near future and the banks of the country have been saved. It was necessary to invoke a war meas- ure of the Wilson administration to ac- complish this result. Today all over the United States banks have com- menced to open again under close Gov- ernment supervision. It will probably Tequire some days of time to get all the banks reopened which are in condition to function. “The job undertaken by the Trersury Department seems stupendous, but it is rapidly proceeding. The budget must be balanced this year, and we are going to balance it without resorting to addi- tional {rritating taxes. The people of this country have been taxed all they are willing to stand, and they have been patlent and long suffering. Reductions Authorized. “Day before yesterday the Congress of the United States, by nyn €normous ma- Jority, took the first steps towards bal- ancing the budget without additional taxes. We turned over to the President the right to drastically cut the expenses of the Federal Government, including in the cut the pensions and compensa- tions paid to veterans of all of our wars. It is hoped that these reductions will be temporary. “We must first put our national house in order. We must first re-establish our complete solvency before business can move in its normal way. The encoug- aging thing about it all is the patience Wwith which the people of the United States have stood their sufferings and have remained loyal to the G&Zsmment, ‘i?ge mly .;lll o;";r the Unit States citizens of parties are standin hc’ll(‘hne' the President. oy “The present session of Gongress will be historic. It is more important even than the war sessions. It was easy dur- ing the war period to stand back of the President when flags were flying and bands were playing, and when our armies were proceeding across the seas to engage in battle on foreign soil. But ‘We are engaged in a war now more serious than the World War. During the entire period of our history as a Nation we have won our battles always When they involved & clash of armed forces on land or sea. We can always assemble when we are threatened by foreign foes, great armies in remarkably short perlods of time. There are more %fi?&fixs?fn of t.he1 white race in the ates than in other coun- try in the world. i People Form United Front. “It Tequires greater courage to fight the war in which we are now engaged, but the people of the United States are rising to the emergency and with a united front we will in the near future win the economic battles in which we are now engaged. ith a balanced budget assured it will be easy to meet with new bond issues and new note issues at reasonable L . o Splitting” Head 2f she learned Until B » bk %‘m'?m This safe, long fine wi % able, all-vegetable hm.iv’:'bm‘m ick relief 2nd' quiet nerves becauss ¥ ciraced b of poisonous wastes—made bowel action 2, and reqular. Thousands take MR daily. wvmhmm_ sure, pleasant corrective. Mild, . Nobadafter- ects. At Jad e Menthol Cough Drops " Promises Tax Curb SPEAKER RAINEY. —Star Staff Photo, interest rates the obligations which will soon be due. When the upward curve of husiness again commences—and this will happen soon—a complete recovery is not far away. It requires a little more patience and a vigorous support of the administration and our troubles are over, and our fight against the depression will be won and we will soon reap the re- ‘wards of victory. The session of Congress last Satur- day will go down in history. I re- member well the stormy night nearly 16 years ago now, when, after a debate which lasted all day and until 3 o'clock in the morning of April 17, the House voted to declare war against Imeprial Germany. But the session of last Saturday was as tense, as full of thrill- ing interest, as the war session of 16 years ago. The galleries were crowded, as they were then. The debate was as intense as the war debate and at the end of it all, by a vote of nearly two to one, the members of Congress of all parties voted to reduce their own salaries and to reduce the salaries of all Federal employes. They voted to reduce the compensation and pen- sions of the veterans of all of our wars, and the House conferred upon the President of the United States the au- thority to reduce within certain limits salaries and the veterans’ payments. It may mean a total decrease in the cost of Government of $500,000,000. When I came to Congress first, years ago, it did not require much more money than this to run the Federal Government for one year. “In a few days we expect to pass the bill legalizing beer and to take away from the bootleggers a large part of the profit they now enjoy and turn it into the Treasury of the United | States. Reliet for Farmers. “In the near future, and before the adjournment of the present session, we are going.to take care of the farmers and restore to them the buying power which they must have in order to start again the industries of this country. “It will not be long until our facto- ries and our mines and our farms will again be operating. Through the dark clouds which have enveloped us in re- cent months the sun has already com- menced to shine. Better, happier and more prosperous days are just ahead of us. “All over the country banks are re- opening and the fact that certain banks are reopening today or during the rest of this week does not mean that the banks which do not open are not sound. It is a tremendous undertaking for the Treasury Department to ex- amine and check up on all the banks in the United States. The only au- thority the Federal Government has 30' over State banks is to close them, but as rapidly as the banking departments of States report that State banks are ready to resume operations the closing orders will be immediately removed. “There are many banks throughout the country whose assets depend in large part upon farm mortgages, and, of course, just at the present time and until we can restore the buying power of farmers and thereby restore value to our farms, this class of securities is not liquid, and a considerable period of time may elapse before many of the small banks in the farming sec- tions are in a position to resume busi- ness, and the mere fact that it takes a few days in order to adjust these smaller rural banks does not mean that smaller banks are not sound. It mere- Jy means that it takes a little more time o make adjustments there than in the case of banks whose assets are more liquid. Buying Power Vital “Economic recovery is impossible un- less we can restore to our citizens buy- ing power. In a capitalistic nation money circulates only when it is bor- rowed. Money is not bosowed unless it can be profitably invested, and the bank or the individual or the agency which makes the loans must first be assured that the money will be re- turned when it is due and that the rates of interest contracted for will be | paid. Men will not borrow money un- less they can see an investment which | will protect. the principle and assure a sufficient return to meet the inter- | est charge and in addition to that leave | some profit for themselves. Money is | borrowed for the purpose of building factories, building rairoads, equipping factories, building hotels and apartment houses and other investments of lke character. Just at the present mo- ment no investment of this kind prom. ises returns. Factories cannot operate n. C, i §EEEE B e 3 TUESDAY, MARCH 14, 1933. ] ; 4 | E 3 i e §§§§ g 4 i % $hpdst g3kees i E i i g Eé i 25¥ i it seen parties united before. In the House of Representatives politics has adjourned, by common consent. ‘The time will soon be here when we will find ourselves standing on the very highlands of the morning witnessing AIR PASSENGERS AIR EXPRESS U.S.AIR MAIL Al Information and reser- 4, vations for all airline % destinations. EASTERN AIR TRANSPORT SYSTEM 808 15th STREET, N. W. (National 7161) 'WASHINGTON AIRPORT (Narional 3646) WASHINGTON - NEW YORK EVERY HOUR ON THE HOUR 100% PURE PENNSYLVANIA... THE FINEST | protection-economy-satisfaction utocrat MOTOR 0||. 30¢ QUART BAYERSON OIL WORKS : COLUMBIA 5228 If You Would Have the save your hair by having charge or obligation. Cor. 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M. the dawning of the new day, which comes now to us and to all the world.” g DO YOU WANT GREATER within the terms of the eighteenth amendment means the speedy re-estab- lishment of one of our great industries. It means the expenditure in a year from the time that beer is legalized of over $400,000,000 in plant e?\l!pmmm It means the establishment of induced business along various lines. The rev- a&uvhmhwmmmwmmmg e Treasury augment almost » simiar amount from other Trelated indust:4ee revived and increased in importance and in output by the legalization of beer. Our immediate and confidence is rapidly t.he&eopu of the United States. prime importance also is the reduction of the interest charge on farm , and we must prevent foreclosures for a limited period of time. ‘There are eight loaning agencies under government control which make loans to farmers. 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