Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1931-12-11
Senator Hun's waruing

Editorial in Baltimore Sun.
Senator Cordell Huil's picture Of the dis
organization in local and Federal finances Is
discouragine but by no means exaggerated.
Many Of our States and Cities are in fnan-
cial difficulties as result Of their failure
to readjust their expenditures and their
taxes to the change in business conditions
since 1920. The plight of the Federal
Treasury is without precedent in the peace
time history of our country.
We have been proceeding since the war
on the theory that public finances would
take care of themselves. that budgets were
self-balancing and that the authority Of
Legislatures to extract revenues from pros.
porous taxpayers was subject to no limita-
tons. We have imposed new taxes on
the theory that il is proper to draw revenue
from any source which can be easily tapped,
with the result that we have pyramded
taxes ON such commodities as gasoline
and cigarettes and have In many instances
duplicated the Federal income taxes with
State imposts Of similarly burdensome
character.
The yields from our facile ventures in
taxation have been so large as to encour.
age our State Legislatures to appropriate
money on the most liberal scale ever
known. while Congress. with the Hoover
Administration recommending and approv-
ing its course. voted public money in the
midst of depression more generously than
ever before when the nation was not at
war. The time would seem to have come
for an overhaulins Of our fiscal policies and
an effort to adjust them to fit the realities
of the changing present instead Of the
dreams Of the new economic era"
The first move toward overhaulins ought
priations. Senator Hull proposed under
this head that the Federal Government cut
down ordinary expenditures by $780,
100000 year. Such reduction ought
not to be impossible. President Hoover
has announced that the budget estimates
for 1888 will be some $250.00O 900 less
than those tor the current year. Congress-
with Democratic House taking the lead
would need to effect further reduction Of
no greater proportions to bring the total
allotments within the limits Senator Hull
has .et. The task may not be possibls Ia
a year in which Federal agencies will need
TO exercise great care in order to avoid
contributing to unemployment by too
stringent economy. but such reduction
within the space Of few years 10 not
highly desirable but completely practicable
There are. for example. many opportuni-
ties for reduction in subsidies which the
Federal Government is now paying to
private business with lavish hand Il Is
20 be assumed that the President in the
economy measures he has already taken
has cut OF the subsidy to agriculture
which cost the taxpayers $500. 0O0.0 in
the past three years. II that has not
4. been cut of. the economy drive for which
Senator .luIl calls ought to begin with this
particular item. Il might then 60 on to
the air and ocean mail subsidies. which
are now absorbing more than $50 900 900
of public revenues year. When these have
been cut down the payment Of tax refunds
20 large corporations might come In for
survey next. And there are many more
items that would suggest themselves II
any real attempt to cut down on public
ouilays were mad
After economy, hut comparing with
economy 10 importance. Is the need for
balancing the budgets. The Federal budget