New Britain herald., 1928-01-31
Ptoe3dent Addresses Heads of Departments and Bureaus at Semi.Annual Business Meeting.


 Washington. Jan. 31 R-Empha- sizing anew the need for maintaining ! we'll balanced federal budget and of reducing the national debt, Presi- dent Coolidge told the heads of de- partments and bureaus at the semi annual government business meeting last night that it is far better to have no tax reduction than to have too much.
 While he stressed the importance of adhering to q constructive econo- my program. the president declared # would be a mistake to stint activi- ties vital to the safety and well-be- ling of the nation. In this connection, he mentioned national defense, call ing attention particularly to the ad- ministration's naval building pro- gram.
 Tt considers our own require mcnts alone and carries no thought Of entry into competitive construc- ton with any other nation." he said Tho plan I have endorsed does not contemplate any limitation of time aS to the beginning or the comple- ton of this tentative progrom. Bat it does contemplate the building of tho ships as fast as possible"
 Indirect Tax Reduction
 Cautioning against departure from tho policy of keeping governmental expenditures within receipts. Mir. Coolidge pointed out that any sur plus always could be applied to the public debt. the reduction of which, he said. is in itself indirect tax re- duction.
 T have expressed myselt in favor of further moderate tax reduction" the president said. T have indicat- ed tho maximum reduction we can now afford. There was no partisan thought in that recommendation ] consideration by the congress.
 We must not depart from the wise policy established and thus far rigidly followed of keeping our ex- penditures within our receipts. That I had in mind in making my recom mendation. It has made . rich con tribution to the present splendid fi- rancial status of the country. It has enabled us to hire money at 3 lower rate than any other business in tho world. It has beea effective in tho maintenance of prosperity. II has the hearty endorsement Of the taxpayers. ...- 0
 That policy Of . balanced budget expenditures within receipts must not be molested. It must not be endangered. Tho great good which has come to this country from . balanced budget Is too measure less, too far-reaching. even to sug- gest any other course. This nation is neither too weak nor too improvi- dent to meet It's obligations as they occur.
 "Ths budget for 1929 which fore csst . surplus of s25:5.54o,ooo is now before the Congress, The action 70 far taken by the Con gress on that budget indicates no tention of diminishing the expected suPplua With . continuation of the e6orts for economy in federal operations ve can have a moderate reduction in taxes and at the same tisns adequately meet the urgent national problems which arc now confronting us.
 Result oi Past EounnRny
 spsst economy has given us the means tor internal Improvements saA developments and more ade- @uats national defense. But we cannot stand the cost of the things which we should and must have. if VI adopt excessive tax reduction. It is far better to have no tax re- Auction than to have too much. We have the public debt to which to apply every dollar of whatever sur plus may accrue. That. indirectly. is tax reduction. Every dollar sp- piled to tho debt saves perpetually tho interest on that dollar. It is a contribution to the welfare Of the people, . logical step nearer ade- quats tsx reduction
 That 1t is much easier 10 borrow money than to pay it. Mir. Coolidge said, is shown by the fact that the national debt was increased from slightly over S1.25o. 100000 to nearly s2s.soo. 100000 from 1917 to 1919. Although the debt was in- creased approximately $25.o00oo 900 in about two years. he said it has required more than eight years 10 reduce it by $s,50o,oo0, 900. leav- ing the debt at approximately $1s,- 000.000,O00. Since the declaration of war in 1917. he pointed out more than 317,ooo 100000 has been paid in interest and principal.
 We cannot overestimatc or over emphasize the importance of the re- duction which has been made in our deb,"t MT. Coolidge added Our interest cost is still great burden. This cost for next year. however, will be $1.o0o 900 day less than it was at the peak Of our interest charges.
 Asserting that economy in federal operations IS here 10 stay. Mr. Coo lldge declared that by economy. he meant Constructive economy that provided ample appropriations for