The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-12-04
Congress is Petitioned for
Nearly Four Billions
to Run u. S.
URGES TAX REDUCTIONS
President is Optimistic,
Pointing to National
SolVenCy.
BY CECIL OWEN
United Press staff Correspondent

united freSS stan
WASHINGTON, Dec. 4.-Presi-
dent Hoover transmitted to congress
today his first budget recommend
ing total appropriations for the
fiscal year 1881 Of 1880, ,445 ,231, a
reduction of $145, $4,000 as COM
pared with expenditures of the cur
rent fiscal year.
Estimating governmental sur
pluses of $225, 900 this year and
S122,0O0,000 in 1881, President
Hoover proposed tax reduction on
1929 incomes as already outlined by
Secretary Mellon. This program
will provide a cut of one per cent
in the normal tax aggregating
$16000O,000.
Warning congress that only a
temporary tax decrease is justified
by the state of government finances
now, Mr.. Hoover said year hence
it will be possible to determine
whether the continuation or even
extension of the reduction is justi-
fed.
Every effort will be made, he
added, to so conduct the govern
ment finances as to continue the
benefits of reduced taxation for
succeeding calendar years.
Prosperity Part Cause
Experience has shown" the
president said, that each reduction
in taxes has resulted in revenue in
excess of the mathematically COM
puted return under the reduced
rates. Undoubtedly, an increase in
the prosperity of business, brought
forth by tax reduction partly is re-
sponsible for this experience. Such
reduction gives the taxpayer cor
respondingly more for his own use
and thus increases the capital
available for general business" ="
Although the total 1881 budget Is
nearly $150,0o0000 under the last
budget of the Coolidge administra-
ton, President Hoover proposed in
creases in the appropriations for
several important branches.
Principal increases recommended
to congress by the president in
Guided enlarged funds by $10,000,-
600 for flood control and rivers and
harbors, additional funds for the
Justice department of $4,079, 900, and
for the state department of $2,443,-
900. An increase of about So, 100,-
900 in the appropriation for In
dians, and of $2,OO0,000 for better
forest fire protection was re-
quested.
Money For Prison
Provision was made in the build
ing program for construction pro-
iects at several federal penitentiar-
les as follows: Leavenworth, $22, 900;
Atlanta, $4,000; Mcneil Island,
$139.000, and $450,0O0 for continu-
ing construction of the Chillicothe,
O., industrial reformatory. Total
building estimates of $50, 10000
were contained in the budget.
Estimates for war and navy de-
partment appropriations provide an
aggregate of $719,089,000 for ma
tional defense. President Hoover
SdlQ, d1lST SACIuQllls dli 1tCAIlS VI %
non-militery character.
Substantial amounts were carried
in the budget for carrying for
ward the aviation programs Of both
services, the housing program OF the
army, modernization of battleShipS,
and construction of new naval YES
sells authorized by The 15-cruiSer
bill passed by the last session of
congress.
SSS.O0O,O00 For Planes
Under the air service programs
for the army and navy, the PreSi-
dent asked a total of $33, 100000 for
procurement of airplanes. In addi-
ton. he asked for the same purpose
for the coast guard, department of
commerce and the national advi-
sorry committe for aeronauticS q
total of $460,000.
An additional $10,325,830 was
asked also for lighting and equip
ment airways. inspection and IL
censing planes and pilots. and
furnishing Of weather reports to
aviators.
Concluding his summary Of the
1881 budget, President Hoover
sounded note of optimism. He ad-
vised congress:
"Our finances are in sound con-
dition. The public debt which at
its peak in August. 1919. amounted
to S26. .596, 900 900, stood at $16,931,- =
100000 on June 80, 1929. We are
committed wisely to a policy which
insureS the further progressive re-
duction of the debt. We will reach
in 1881 for the first time, the period
when the annual reduction required
by law in the principal of the debt
will be greater than the annual in
terest charges on the debt.
I'VE also are committed to the
annual amortization of our other
long term committmentS-such as
the adjusted service certificate of
the world war veterans and our
liability under the retirement laws
affecting civilian personnel"