The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-01-31
MODERATE CUT
AGAIN IS URGED
BY EXECUTIVE
Better to Have No Reduc-
ton at All Than Too
Much, Says President.
STRESSES NAVAL NEEDS
10 Competition Intended
With Other Nations;
Stresses Economy.

WASHINGTON, Jan. 31.-Con-
greSs was confronted today with
what many regarded as a clear
warning from President Coolidge
chat he will veto any excessive tax
reduction bill.
In his speech to the fourteenth
regular meeting of the business or
ganization of the Government last
night, Coolidge said, ut is far bet
ter to have no tax reduction than
too much" and cautioned against
disturbing budget equilibrium by ex-
cessive tax reduction.
Hitherto, he has stood for $685.
100000 tax reduction and his speech
indicated he still regards that as
safe limit.
The tax warning was coupled with
a statement that the new Navy pro-
gram now before Congress envis-
ages only United States require
mentS without contemplating COM
petition in construction with other
nations. The President revealed
that America will spend $20.55 a
Second-$1,233 every minute-for
national defense the next fiscal year.
Stresses Naval Needs
"The recommendation now before
Congress to replace obsolete naval
vessels and moderately increase our
naval strength contemplates an
orderly construction procedure,
nothing more" he said. ut con-
templates that the construction pro-
gram will be carried out, as condi-
tons dictate and treasury balances
warrant. 1t considers our own re-
quirements alone.
1.-THE plan have Endorsed does
not contemplate any limitation of
time as to the beginning or the COM
pletion of this tentative program"
he said. But it does contemplate
the building of the ships fast as pos
Sible."
Coolidge stressed economy through
out his address.
He said he had previously ex-
pressed himself in favor of a mod
crate taax reduction, indicating the
maximum the Government can now
afford is 1925, 100000. Some saw in
his warning against disturbing the
budgets equilibrium warning of
a veto if tax cuts exceed this figure.
Surplus Is Needed
"There is no partisan thought in
that recommendation, he con-
tinued. Il hope there will be none
in its final consideration by Con-
gress.
1.-THE budget for 1929, which fore
cast a surplus of 1882, $4,000, is now
before Congress. The action SO far
taken by the Congress on that
budget indicates no intention of di-
minishing the expected surplus.
"Past economy has given us the
means for internal Improvements
and developments and more ade-
quate national defense. But we can
not stand the cost Of the things
which we should and must have if
we adopt excessive tax reduction.
reduction than too much. We have
have the public debt to which to
apply every dollar of whatever sur
plus may occur. That, indirectly,
is tax reduction"
The President said some of the
necessities arising next year in
Guided the Navy program, the Fed
eral building program, costing about
$350,000,000 an Army program con-
templating expenditures in excess
of $100,000,000, housing of foreign
representatives to cost $10,O00,0OO
and an undetermined amount for
flood control.
Public Debt Still Burden
Coolidge said there is now Con
tentment and peace Of mind" ard
prosperity in the United States.
He pointed out that the budget
system is responsible for reducing
the public debt $8,500,000 i'll eight
years. He emphasized that interest
on the public debt is still a ire
mendous burden on taxpayers.
1.-THE cost next year, however, will
be $1,000,000 day less than it was
at the peak of our interest charges"
Il said. 1.-TWO hundred thousand
en- at IS per day is what this rep
l,ssnts. All this labor has been re-
leased for productive employment
for the good of the people. What
saving of human energy"