Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-03

and in 1929 there were about $50 OOO Our citizens
army army however; including the National Guard and
to about 2SSO0 In 1914, about $4,000 in 1924, and
Under the Kellogg pact we have undertaken
never TO use war as an instrument Of national
to use these equipments solely for defensive pur-
poses From a defense point of view our forces
therefore, to some extent be modified by the pros
poets OF peace which were never brighter than to-
1t should be borne in mind that the improve
ment in the National Guard by Federal support
begun in 1920 has definitely strengthened our
toral security by rendering them far effective
than ever heretofore The advance of aviation has
also greatly increased effectiveness In defense
In addton to the very large program of air forces
which we are maintaining in the Army and Navy.
there has been an enormous growth of commercial
aviation This has provided unanticipated reserves
in manufacturing capacity and in industrial and
air personnel which again adds to our security.
<ccS:--":>nd that Congress give earnest consid-
Grafton to the possibilities of prudent action which
will give relief from continuously mounting
penditures.
Finances Of Government.
The finances of the Government are in sound
condltion shall submit the detailed evidences
Budget message. 1 may however summarize our
position The public debt June 80 this year
in August 1918 of $685. 900 600. since june 80
1t has been reduced by further $238 900 900. In
the Budget to be submitted the total appropriations
recommended for the fiscal year 1891 So, $780,
44523l, as compared to $3,s7614l.651 for the pres
pr the Feds4s year gosrd
as to which no estimate can yet be determined
for 1881.
Owing to the many necessary burdens assumed
by Congress III previous years which now require
OUTLAWS 1t is with extreme difficulty that shall
be able to keep the expenditures for the next
fiscal year within the bounds of the present year.
Economies in many directions have permitted some
accommodation of pressing needs the net result be-
ing an increase shown above of about one tenth
OF per cent above the present fiscal year. We
not fail to recognize the obligations of the Govern
he hlltw mis-
coinc1dentaly bear in mind the burden of taxes and
strive strive TO ma relief through some tax reduction
perity.
Tax Reduction.
The estimate submitted to me by the Secretary
Of the Treasury and the Budget Director indicates
that the Government will close the fiscal year 1890
with surplus of about s225 900 900 and the fiscal
year 1891 with surplus of about $l23 600 O0O Ow-
ing to unusual circumstances it has been extremely
difficult to estimate future revenues with accuracy
/ believe. however, that the Congress will be fully
justified In giving the benefits of the prospective
pluses to the taxpayers particularly ample pro-
years through the form of debt retirement from
ordinary revenues In view of the uncertainty in
small size of the indicated surplus in 1881 relief
should take the form of provisional revision of
tax rates.
recommend that the normal income tax rates
applicable to the incomes of individuals for the cal
endar year 1929 be reduced from S, 8, and ~ per
cent, TO 4, 2, and II per cent and that the tax
the income of corporations for the calendar year
1929 be reduced from IL to IL per cent 1t is eSt-
mated that this will result in reduction of $780,
100000 in income taxes to be collected during the
calendar year 1890. The loss in revenue viii be
divided approximately equally between the fiscal
years 1890 and 1881 Such a program will give a
measure of tax relief to the maximum number Of
taxpayers with relatively larger DEMENT'S to taxpay-
ers with small or moderate incomes.
Foreign Debts.
The past year has brought us near to compile
ton of settlements of the Indebtedness Of foreign
governments to the United States.
authorized the settlement with the Government of
Austria along lines similar to the terms OF settle
ment offered by that Government to its other relief
creditors. No agreement has yet been concluded
with that government. but the form Of agreement
has been settled and its execution only awaits the
Government of Austria securing the assent by all
the other relief creditors of the terms offered The
act of Congress approved February IA 1929 author
lied the settlement with the Government OF Greece,
and an agreement was concluded on May 10, 1929.
The Government of France ratified the agree
ment with July o. 1929. This agreement will
shortly be before the Congress and recommend Its
approval.
10 the United States now unsettled is that of Russia
and Armenia.
Claims 4 gGinSt Germany.
During the past year a committee Of distin-
guished experts under American leadership sub
mitted plan looking TO revision of claims against
Germany by the various Governments. The United
States denied itself any participation in the war
settlsment of general PREPARATIONS and claims
comparatively small in amount. They arise from
costs OF the army of occupation and claims of
private citizens for losses under awards from the
Mixed Claims Commission established under agree
ment with the German Government. In finding
basis for settlement it was necessary for the COM
nittee Of experts to request gil the Governments
concerned to make some contribution to the adjust
ment and we have felt that should share pro-
portion Of the concessions made.
The State and Treasury Departments will be
in position shortly to submit for your consdera-
ton draft of an agreement to be executed between
The United States and Germany providing for the
payments of these revised amounts.
tensiye statement will be submitted at that time.
The total amount OF indebtedness of the various
countries to the United States now funded Is SILL
SIG. 465 1856. This in effect provided by the
own people. The payments of the various Govern
mentS to account OF principal and interest for
1890 estimated at total of about $239 900 000
for 1881 at about 1926 ,000 for 1882 at about
S246 000, 900. The measure of American compromise
in these settlements may be appreciated from the
fact that our taxpayers are called upon to find
nuay about $475 900 in interest and in addition
to redeem the principal of sums borrowed by the
United States Government for these purposes.
Alien Enemy Property.
The wise determination that this property seized
in should be, returned to its owners has pro-
ceeded with considerable rapidty. OF the original
seized cash and property (vaued at total of about
1928 600 0O0) all but 81 500 TOO has been returned.
Most of the remainder should be disposed of during
the next year.
General Economic Situation.
The country has enjoyed large degree OF pros
perity and sound progress during the past year with
steady improvement in methods of production and
distribution and consequent advancement in stand
ards Of living. Progress has, Of course been up-
equal among industries, and some, such as coal,
lumber. leather, and textiles still lag behind. The
long upward trend of fundamental progress, how
ever, rise to oyer-opmism as to profits, which
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