US Presidency
1932

As this sum forms the basis of calculations as to increased taxes necessary it is essential that, no matter what the details may be, that amount of reduction must be obtained or taxes must be increased to compensate. If this minimum of $ 400 million is attained by congressional action together with the $ 369 million effected through executive budget, except for amounts already budgeted for public works in aid to unemployment and increased costs of veterans, we will have reduced expenditures of this Government to the lowest point since 1916. In the matter of tax legislation, we must face the plain and unpalatable fact that due to the degeneration in the economic situation during the past month the estimates of fertility of taxes which have been made from time to time based upon the then current prospects of business must be readjusted to take account of the decreasing business activity and shrinking values.