The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-11-22
Retrenchment
(Washington Starr

Further tax reduction, at this time, is impossible, &C
cording to the officers OF the government at the head Of
It's financial affairs. The temporary decrease In the fed
eral income taxes, amounting to l per cent of the nor
NAL income tax rates, which has operated for income
abandoned. It is estimated that this temporary decrease
IN the tax rate Topped $leo.ooo00o off the tax receipts
OF the government.
President Hoover, in a statement made yesterday,
paved the way for a future announcement that the gov
eminent may face a small deficit. due to a possible excess
OF expenditures over receipts. The president, at the same
government would be unshaken. even though a small
deficit faced the country for the period OF a year.
IT. always well for the country to know its financial
condition. Particularly should 1t have information when
there Is danger of q deficit. Under such circumstances
the need for retrenchment In government expenditure
necoms imperative. The president doubtless has in
mind the demand for expenditure at this time of con-
siderable sums Of money for public works. as an aid to
employment Of labor In this country. His statement yes
terday indicated that the administration was preparing
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 a
warming 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 off in business during the }ast year. Every
big municipality in the country has undertaken to aid
the poor and the unemployed on a scale not attempted
IN any previous years. Much will be done through pri-
vate initiative. The most that can be expected 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 sew
eral members Of congress. proposals will be put forward
when that body meets looking to very large expenditures
BY the government. One Of them will call for greatly
increased appropriations Cor federal aid to road build
ing-an increase running into hundreds of millions Of
dollars Another may propose the enactment Of the So
called debenture plan for farm relief. The debenture,
IN effect, will take many millions of dollars which other
wise would reach the federal treasury through the I'M
position Of tariff duties and turn them over to Individual
farmers. It has been declared unsound in principle.
These are but samples Of perhaps a score Of proposals
That may be expected looking to the expenditure of gov
eminent money on a. large scale.
The time for retrenchment is at hand. This country
mas 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 farm hold
OF that situation and throughout the period kept new
expenditures to a minimum. The rebound Of business
carried the country to great heights of prosperity. It
may be expected that a rebound will 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.