Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-15
Retrenchment.

FurLner TAX reducClon, at CnlS Time, Is
impossible, according to the officers of
the Government at the head of its
financial affairs. The temporary de-
crease in the Federal income taxes,
amounting to / per cent of the normal
income tax rates, which has operated
for income tax payments made during
the present year. must be abandoned.
It is estimated that this temporary de-
crease in the tax rate Topped $50, 00Q,-
900 of the tax receipts of the Govern
rnent.
President Hoover, in a statement
made yesterday, paved the way for a
future announcement that the Govern
nnent may face small deficit, due to
a possible excess of expenditures over
receipts. The President, at the same
time, gave it as his opinion that the
stability of the Government would be
mistaken, even though a small deficit
faced the country for the period Of a
year.
1t is always well for the country to
W
larry should it have information when
there is danger of deficit. Under such
circumstances, the need for retrench-
ment in Government expenditure be-
comes imperative. The President doubt
less has in mind the demand for ex-
penditure at this time of considerable
sums Of money for public works, as an
aid to employment of labor in this
country. His statement yesterday indi-
Gated that the administration was pre-
pairing to request the Congress for funds
to go ahead with public works on as
large a scale as the financial condition
Of the Government would justify.
The Presidents statement, however,
may be taken as q warning to those
members of Congress who would rush
the country into heavy expenditures to
carry out their own pet ideas Of relief
for Unemployment, brought about by
the falling on in business during the
last, year. Every big municipality in
the country has undertaken to aid the
poor and the unemployed on scale
not attempted in any previous years
Much will be done through private
initiative The most that can be ex-
pected of the Federal Government
under the circumstances is that it shall
set the pace and afford wise example
IN relief measures.
Judging from the expressions already
made by several members of Congress
proposals will be put forward when that
body meets looking to very large ex-
penditures by the Government. One OF
them viii call for greatly increased APP
preparations for Federal aid to road
building--an increase running into hum
dreds Of millions of dollars. Another
may propose the enactment Of the So
called debenture plan for farm relief
The debenture, in effect, win take many
millions of dollars which otherwise
would reach the Federal Treasury
through the imposition Of tariff duties
and turn them over to individual farm
ers. 1t has been declared unsound in
principle. These are but samples of
perhaps score of proposals that may be
expected looking to the expenditure Of
Government money on a large scale.
The time for retrenchment is at hand
This country has experienced hard
times in the past. There was a period
Of depression Immediately after the
close of the World War, with millions
Of unemployed. The officers of the
Government, aided by the Congress
took firm hold Of that situation and
throughout the period kept new ex-
penditures to minimum. The rebound
Of business carried the country to great
heights Of prosperity. 1t may be ex-
pected that rebound viii follow the
present period of depression. In the
interval, however. it is the part OF
prudence for the Government to return
to severe economy. Heavy increases in
taxation Of the citizens to carry out
governmental projects would not aid a
return OF business, so much desired at
this time.
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