Evening Star Newspaper, March 21, 1933, Page 10

A—10 STEPS'TO BALANCE BUDGET ARE LAUDED Harrison Praises Roosevelt Savings in Address in Radio Forum. The steps taken under the Roosevelt administration to balance the budget | were described last night by Senator Harrison, Democrat, of Mississippi, in an address in the National Radio Forum, arranged by The Star and broadcast over.a coast-to-coast network of the Na- tional Broadcasting Co. The indicated billion-dollar deficit for the fiscal year 1934 has been eliminated by this program, it was explained by the Mississippian, who is chairman of the Senate Finance Committee. He cited the following figures: A saving of $500.000,000 to be accomplished by re- ductions in veterans’ compensation and the general retrenchment plans of the Government; $150,000,000 to be obtained from the beer tax, and $137,000,000 by continuing the Federal levy on gasoline. Touches Veterans’ Question. On the question of veterans’ allow- ances, Senator Harrison said the new | economy act “will restore the just prin- | ciple of granting pensions to those who made & physical spcrifice for the secu- Tity of our country.” The Government pay cut. which, he amplified, is to be based on lowered cost of living, “treats all allke with fairness and equity.” Mr. Harrison praifed the Republicans in Congress who have co-operated with the administration forces in meeting what he described as “this great crisis in our country’s history.” The text of Senator Harrison's speech follows: Tonight, T am going to try to ex- plain what a balanced budget s, it is necessary, and the steps | which have been taken in less than | two weeks to accomplish it. | A balanced budget means no more | and no less than living within one's | income, bringing one’s _expenditures | into balance with one's revenues. This | is nothing new to Americans. We all, | in our domestic_lives, do this very thing. We balaffe our domestic bud- get. It is no less important that gov- ernments balance their budgets; that they bring their expenditures into equilibrium with their revenues. I say this is no less important than in our domestic lives because your life and mine, in large measure, depend for their fullness upon the preservation of the credit of your Government. The security of the doposits which you have in banks rests upon the credit of your Government. The validity of your insurance policies rest upon the credit of this Government. In some meas- ure, the security of your employment rests upon the credit of the United States Government. In short, the wel- fare of every American rests upon the credit of the United States. During the first year of the depres- sion the deficit amounted to almost $500,000,000. During the second year THE EVENING STAR. WASH Describes Economy Program SENATOR HARRISON. sulting from such a general banking collapse. It must, therefore, be clear to you that the fiscal affairs of your Government should be put in order, that a successful accomplishment of this task has a profound effect upen your lives. Approach to Task. An approach to the task may be made in one of two ways: either through the imposition of new and| substantial taxes, or by drastic re- trenchment. One billion dollars, on a falling national income, is a stupendous sum of money to raise by new levies. our people are already overtaxed. The farmer is carrying an insupportable burden. The merchant is dragged down by the sheer weight of taxes. The in- dustrialist is compelled to restrict his production, to put men*out of jobs by reasth of the tax burden he is carry- ing. It is not wise, therefore, in the interests of recovery, if it can be avoided, to increase the levies on you. But more than that, there is some question as to whether, even if the ad- v | year 1928. GlEs ey i iam v | termination of the cost of living dur- |ing the first half of this year. ,_heipercentnge of decline in cost of living as between the first half of this year and the last half of 1928, is the pe: centage of reduction which will be ap- provide sufficient revenue to accom- plish the task and so, therefore, re- trenchment—drastic economy—is only way in which economic chaos can be avoided. It is for these reasons that immediate action was taken. The bill tion in the following way: vides for a determination of the cost of living during the last half of the in that legislation to the President were many, broad and far-reaching. The regulations that he is to make cover & wide field and will affect mil- lions. But the Congress felt, and I am sure the country feels, that the keen sense of fairness and justice possessed by the President, will direct his course, and whatever his conclusions may be, they will be based upon that fine and humane impulse that has. moved him throughout his public career. Federal Employes’ Pay. With respect to that portion of the act which deals with the compensation paid to the employes of the Govern- ment, several things were provided for. First, there are no exemptions of any sort or description. Every one, from the highest to the lowest, makes his contribution to the maintenance of the credit of your Government. it defines that contribu- It pro- Secondly, It then provides for a de- The to maintain the credit of the United |Plied to the compensation of employes States Government, otherwise known as | 0f your Government. the economy bill, was the form which that action took. It dealt with three things: ject to certain principles which were | It then provides that this determi- nation of the percentage decline in the (1) Sub- | cost of living shall be made every six months, and that the percentage so de- laid down/n it, it authorized the Presi- | termined shall be applied to the com- dent to make readjustments in veterans’ | benefits; (2) it directed the President | pensation of Federal employes for the following six months. There is nothing | harsh or unfair about this provision. NG'TO tain the credit of the United States, approximately $500,000,000 can be saved. Under the reorganizstion and elimina- tion powers which the President now has, approximately $150,000,000 in econ- omies can' be effected. In addition, there are other items of 1expenditures which can be reduced in the appropriate amount of $100,000,000. It is conservatively estimated, there- fore, that retrenchment alone will save approximately $750,000,000 for the next fiscal Year. This leaves still a deficit of :grmnmltely $250,000,000. To mcet t deficit the Senate today adopted the conference report on the beer bill. The House will adopt it tomorrow. thu~ assuring to the Government a new and immediate source of revenue Lo e amount estimated at a minimum of $150,000,000 annually. Within a few days the Congress will continue for an- other year the 1 per cent tax per gal- lon on gasoline, which yields in zeve- nue $137,000,000. Thus economies in the amount of $750,200,000, the beer tax and the gasoline tax, in all reasonable expesancy, the indicated deficit for the fischl year 1034 been eliminated. There may be some difference between actual revenues and estimated revenues, but as nearly as it can now be stated, the action of the Congress during the last two weeks has brought our expen- ditures for the fiscal year 1934 into equilibrium with our revenues. The goal, therefore, of a balanced budget is with- in sight. The crecit of the United States has been made secure. Two Weeks’ Accomplishments, In two weeks President Roosevelt and the Congress have accomplished what previous Congresses have been attempt- ing to do for three years. The Presl- dent had a plan and has acted cou-aj ously and promptly. It has been re- freshing to witness the fine co-opera- | tion and splendid reaginess upon the part of the members of both houses of Congress in carrying forward the ideas into the enactment of law. In the Con- gress, throughout the discussion and consideration of this measure, there has been a broad and unselfish spirit to meet the situation and solve these delicate problems, without thought of selfish political interest or party advantage. ‘We have passed through trying and hectic days in Congress since Mr. Roose- velt became President. If groups of people something that they have been receiving. It is not a pleas- ant task to reduce wages. It takes cour- age and a fine sense of real American- ism to do it. But it has been done, and ! I am delighted tonight, as a Democrat, to pay my tribute to the Republican members of the House of Representa- tives and the Senate, who have arisen above party consideration, and co- operated in the finest spirit in this great | crisis of our country's history. It may be, when history is written, the happenings of the last 14 days will | be of as great significance in the annals of Western civilization as any other lik~ period in the history ¢f the world, for it may mean a security’ a rock upon which we can stand, & foundation to recovery. a tonic that will restore confidence and give renewed vigor to the economic life | of our counts GAS AND ELECTRIC West End Citizens’ Associa- meeting in the Grant School last night, indorsed the movement of the Federa- tion of Citizens’ Associations for aboli- tion of the 10 per cent penalties for late payment of gas and electric bills, a 20 per cent cut in water rates, prefer- ential treatment for District residents in employment on public works, and continuation of a full public works program as a means of avoicing unem- ployment, District public works to one person per family evoked some discussion, but it was decided to recommend this method as a means of spreading the work as far as possible. :hn no women were employed on this volve the question of allowing married women to work. tion—that the Public Utilities Commis- sion be given exclusive jurisdiction over | matters before it and the courts be limited to considering the record of the commission proceedings—was held in abeyance when David Babp asked for time to give it further study. creasing traffic hazards to pedestrians at street intersections. The association then adopted a resolution to prevent right or left turns at busy intersec- tions during rush hours. a committee, headed by Mr. Babp, to | study the needs of the community as not an easy | to streets, alleys and parks and te- | matter to vote to take away from large | port to a special meeting, March 31, | of the federation's Committee on High- | ways, Parks and Waterways, | | D. C, TUESDAY, MARCH 21, 193 BILL PENALTY HIT tion Indorses Movement ~of Federation. ‘The West End Citizens’ Association, The question of limiting work on Speakers pointed out ype of work, so that it did not in- Another feleration recommenda- Several members discussed the in- President William Brown appointed | {End Cons.tipiltion Now ‘Thanks to mox forming prepa gently but thoroughly cl e, non- n discovered nses the intestinal tract. Drives out poisons and ac- cumulated wastes. It is called Min-Rol-Psyllia. 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This the compensation of the employes of | The cost of living throughout the United our Government and to reduce their States has falln ~We all have sus- {nmpensauon corresponaingiy;jand|(3)) | (sed tvery iaubstantial 'reductions o it amended certain provisions of ex- |OUr income, and it is only fair that makes three continuous years in which we have piled deficit upon deficit to the extent of almost $4,500,000,000. National Debt Increase. At the same time, the total net in- crease in our national debt will have increased over the same period of time In the amount of more than $5,000, 000,000. Nor is this all. It is conserva- tively estimated that the deficit for the fiscal year 1933 will approximate $1,000,000,000. This situation cannot be ignored. It Is a grim reality. serious were our national income at its normal level, but, coincident with the accumulation of these great deficits, sur national income has steadily di- minished. The revenues have likewise steadily diminished. The expenditures | have remained constant or have in- rreased. By reason of the fact that pur national income was‘falling at the time our national expenditures were tising, these deficits were inevitable, and, what is more, the previous ab- sence of a determined effort to elimi- hate them had aroused a suspicion that the expenditures of the Govern- ment would not be brought into bal- ance with its revenues. The credit of the United States was hanging in the balance. It must, therefore, be clear to you that these large peace-time deficits, the | largest ever experienced in the history | of the world, are having a profound effect on the safety of our economic | order and upon the happiness and full- | ness of our lives. In large measure, the general suspension of bank pay- | ments which we experienced and out of | which I hope we have successfully emerged, can be traced to the policy of continuously living beyond our overnmental income. You know, at | It would not be so | |in the Army but for a limited period | having to do with veterans’ benefits will rst hand and by experience, the par- alysis, the hardships entailed and re- isting law giving the President the au. | the employes of the United States Gov- therity to reorganize the activities of | your Government and to eliminate un- necessary agencies. For a few minutes | I propose to deal with each one of | these three things. | Burden of Veterans. | During the course of the last 10 years, | when money was plentiful; when the revenues if the Government were great, | and all of us were riding on a wave of extravagance, veterans’ legislation had been enacted by Ccngress which im- | |posed not only a present staggering | burden upon the Treasury and, there- fore, upon you, but which also imposed | a cost which, projected 20 years into | the future, would have absorbed all, and more of the revenues which the Government derived during boom days on account of the income tax receipts. This was the effect of these laws. What they actually did, quite irrespective ot" their financial consequence, was to per- mit veterans who had no disability of service origin, many of whom had been of time, thousands of whom had never been in combat with the enemy, to | draw substantial monthly cash benefits from the Treasury of the United States, and therefore, from you. The provisions of the economy act restore the just principle of granting pensions to those who made a physical sacrifice for the security of our coun- try. It will not strike from the rolls those men who suffered a disability in the service of their country. It will not injure the man who was wounded or who incurred a disease while fol- lowing the flag. On the contrary, it protects these men. It makes the pen- | sion roll a roll of honor, & roll on which | 8 man can be proud to have his name | listed. This is the effect of the vet- erans’ provision of the economy bill. It is true that the powers granted ernment, in the interest of the credit of our Government, sustain some reduc- tion in their income. The act provides that, in no event, shall the reduction exceed 15 per cent of the salaries as they were during the year ending June 30, 1931. It provides that there shall be no pyramiding of cuts. If the survey should reveal an increased cost of living the President shall order increases in governmental salaries. It treats all alike with fair- ness and equity. The third portion of the bill, having to do with reorganization of the agen- cies of the Government and the elimi- nation of unnecessary functions, merely permits a speeding up of.the economies which may be effected in this way, so that the retrenchments incident to the reorganization may be felt as soon as possible in this fiscal year and in the next. Under provisions of the bill to main- EESTACYINC GAS HEAT —same price_and terms as your Gas Co. Let us equip your h with ¢ heating. 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