Evening star., 1925-06-23

| order that there may be a reduction
| Of the burden Of taxation now borne
| by the American people. The object
| sought Is not merely a cutting down
of public expenditures. That is only
the means. Tax reduction Is the end.
| The direct beneficaries are composed
of those who file the 100000 tax re-
turns. The indirect benef1ciaries are
all the rest of the American people.
| who must and do make an indirect
! contribution to the payment of the
! enormous sum of more than $4,000
600 every day In the year which goes
out from the National Treasury. This
! is nothing more or less than a restric-
| ton upon the freedom of the people.
| This money has to be earned. Those
who have earned 1t, instead of being
able to retain 1t for their own benefit,
must necessarily turn it over to the
Government.
Less Taxes, Better Business.
Because this gigantic task is self
imposed. 1t is none the less a gigantic
task. We are seeking to let those
who earn money keep more of 1t for
themselves and give less of it to the
Government This means better busi-
ness, more of the comforts Of life.
general economic improvement. larger
opportunity for education, and d
greater freedom for all the people. 1t
is in essence restoring our country to
the people of our country. 1t re-
endows them not only with increased
material but with increased spiritual
values.
1t cannot be too often emphasized
that the property of this country be-
longs to the people of this country.
rhe Government cannot touch cent
Of it save for a public purpose. Gov
ernment extravaganza is not only
contrary to the whole teaching OF our
Constitution, but violates the funda-
mental conceptions and the very
genius of American institutions. 1t
is the high privilege of the people of
this country to spend their own
money.
1t is four years since the holding of
the first meeting of the business or
ganization of the Government. The
Federal budget system had just been
established and we met to dedicate
our services to its successful opera
ton and to reduce the cost Of Gov
ernment. That first meeting was held
at the end of the fiscal year 1921.
During that fiscal year our eXpendi-
lures, exclusive of the moneys applied
to the reduction of the public debt and
the operations of the postal service,
lie debt then amounted to s23.977.-
600. 900. We are now nearing the
close of the fiscal year 1925. The eX-
penditures for this fiscal year will
amount in round figures to $685.
600, 900, and the public debt will stand
at approximately 0,551 900, 900.
Billions Slashed OF.
In the four years of operation un-
der the budget system the annual
expenditures have been reduced 81
081 900 900 and the public debt has
been decreased S3.426, ,0O0.0 900. This
shows concretely what has been ac-
complished by the joint effort of the
executive and legislative bra inches of
our Government. 1t is an accom-
pishment which has further tested
our institutions. 1t Is an accom-
plishment which justifies the abiding
faith of the people in our form of
representative government. Full
measure of credit is due the Congress.
which, as representing the people, has
supported and aided the executive
budget. The history of public affairs
will hardly show a parallel case OF re-
trenchment in the cost of government.
Nor will such history show a more
worthy motive. Back of this tireleSS.
persistent, and drastic campaign for
penditure has been the relief of the
people of this Nation from great
burden of taxation. 1t has been sue
cessful. Taxes have been reduced.
The burden Of the people has been
materially lightened. But the reduc-
ton has not yet reached the point
where taxes have ceased to be bur
den. 1t is to the reaching of this
point that our efforts must be directed.
While the returns are not all In, 1t is
estimated that we will end this fiscal
wear with a surplus of 5000, 100000. 1t
is estimated that our surplus for the
next fiscal year will reach $3.50 ,00Q.
900. The way has been prepared for
further tax reduction. This l will
recommend to the Congress in the
next budget message.
Replies to Critics.
Economy in the cost Of Govern
ment is inseparable from reduction
in taxes. We cannot have the latter
without the former. From some
sources the statement has been made
that this continuing drive for econ
omy in Federal expenditures is hurt
ing business. I have been unable to
determine how reduction in taxes Is
Injurious to business. Each tax re-
duction has been followed by a revival
of business II there is one thing
above all others that will stimulate
business it is tax reduction. Ii the
Government takes less, private busi-
ness can have more. If constructive
economy in Federal expenditure can
be assured it will be a stimulation to
enterprise and investment.
We adopted the principle of orderly
funding and generous retirement OF
legacy of the war. In the last three
fiscal wears the reduction has been
s2,726, 900 900 and it is probable that the
fiscal year just closing will show
further reduction of 100000, 900, a
total of $3.426. 100000. Interest paid
in the wear 1921 was 81 ,000, 900, 900,
but interest this year will be only
1870 900, 900, or a saving of $l30,000,0 900
a wear. Here is direct saving which
is plain to every one.
Strengthened By Debt Policy.
Let us see the part which orderly
management had in effect1ng TINS
saving. Our sound debt policy has
progressively strengthened the credit
of our Treasury. Bonds which In
1921 were selling much below par are
today selling well above. AS the price
of our securities goes up, the inter-
est rate WHICH we HluSl pay oii iC"
fiotations declines. This month the
Treasury offered a per cent one
rear certificate on which the sub
scriptions were nearly four times the
amount of the offering. OF $3.50, ,000,-
900 of decrease in interest payments
between 1921 and 1925, part of the
saving came because there are less
bonds outstanding upon which inter
est must he paid. Over thirty mil.
lion of this decrease is due to the
lower interest rates paid on our Sc
curities. These lower rates are the
result of improved credit, secured by