Evening star., 1932-01-09
HOOVER WARNSU.s.
TO SLASH EXPENSES
President Flags Pending Bills
to Appropriate 40 Billion
Over Next Five Years.

Congress and the country received
another admonition from President
Hoover yesterday on the subject of
economy. Rigid curtailment Of expen-
ditureS is the real road to relief" the
President maintained in renewing his
criticism of sectional interests that seek
Federal appropriations.
Talking yesterday afternoon to news
paper men, the Chief Executive ham,
mered particularly at sectional demands
for appropriations. Those now pend
ing in Congress, he said, total about
$4,000, ,000,000 for expenditure over the
next five years. But, he added, of
course most Of these bills will get no.
where, and Congress has shown a real
desire to cut costs and attain a bal
anced budget.
There was assurance for the country,
he contended, in the developments In
Congress of the past week the nom
partisan determination expressed by
leaders to hold down governmental ex-
penditures.
Warns Against Squandering.
But budget balancing, he warned, in
wolves resolute opposition to any en-
largement of Government activities, For
this reason he called on the hackers of
sectional expenditures to show real
patriotism by abandoning these de-
mands even though it entailed real
sacrifice. He summed up the whole of
his argument in one line:
I'VE cannot squander ourselves into
prosperity"
The President said:
IT wish to emphasize to the full ex-
tent of my ability the necessity, as a
fundamental to recovery, of the utmost
economy Of governmental expenditure
of all kinds. Our people must realize
that government cannot continue to live
in depression upon the scale that
was possible in times of great pros
perity.
Says Taxes Depend ON Savings.
"The developments of the past week
should give great assurances to the
country. The public statements of the
Republican and Democratic leaders OF
the Senate and House show real non
partisan determination in cooperation
with the administration to assure the
country Of the balancing Of the Fed
eral expenditures and income fol-. tbs
fiscal year beginning July !.
THE amount of taxes we will need
to impose for this purpose will depend
upOu WI1dI luI LItSI CuJo wv
can make in Government expenditures.
The budget before Congress represents
a reduction of $3.50, 900 900 in Federal
expenditures for the next fiscal year.
Il shall welcome any further reduc-
ton which can be made and still pre-
serve the proper and just functioning
of the Federal Government. With the
general realization of the necessity OF
reductions in expenditures we should
also at last he able to bring about the
wholesale elimination of overlapping In
the Federal Government bureaus and
agencies, which will also contribute ma
terially to the program of economy.
Hopes to Avoid Increasing Debt
With this program we are thus as
sured that we can maintain the fun
stability and credit of the Federal Gov
ernment by no increase in the public
debt after covering the deficit of this
fiscal year and no further increase after
the first of next July.
The balancing of next years ex.
penditure and receipts and the new
limitations of borrowing implies the
reSolute opposition to any new or en-
larged activities of the Government.
With the assurances which have now
been given from the leaders in Con-
gress I do not believe there is any
ground for apprehension by the public
from the flood of extravagant proposals
which have been introduced there.
1T is true that these bills would
imply an increase of Government ex-
penditure during the next five years OF
over $4,000, 100000, or more than
$4,000, 100000 per annum.
Appeals to Patriotism.
THE great majority of these bills
have been advanced by some organiza-
ton or some sectional interest and are
little likely to see the light Of day from
congressional committees.
They do. however, represent a spirit
of spending in the country which must
be abandoned. I realize that drastic
economy involves sacrifice of large
hopes of expenditures promoted by
such interests. However, appeal to
their sense of patriotism in these times
not to press their demands. They
should withdraw the pressures upon
governmental officials.
Rigid economy Is real road to re-
lief to home owners, farmers, workers
and every element of our population.
The proposed budget of Federal Gov
ernment expenditures for the next fis-
cal year amounts to about 81 ,000, 900 900,
of which over $4,000, 900, 900 is for debt,
and veterans services and
nearly half the balance Is for aid to
in construction works and
as aids to agriculture.
Holds Economy Fundamental.
ut is worth noting that the State
and local government expenditures of
the country amount to nearly ss,Ooo,-
100000. The Federal Government itself
oftt1mes contributes to increased State
and local expenditure by appropriations
requiring a matching Of money by the
States. The result Is pressure upon
State officials by the groups who will re-
ceive benefits from these expenditures
and makes them the unwilling victims
Of increased government costs 49,.
Our first duty as a Nation is to put
our governmental house in order, Ma
tional, State and local With the re-
turn of prosperity the Government can
constructive projects both Of
social character and in public improve
ment
I'VE cannot squander ourselves into
The people will, of course,
provide against distress, but the pur-
pose Of the Nation must be to restore
by economic recovery. The
reduction in governmental expenditures
and the stability Of Government financs
S the most fundamental step toward
this end. 1t can contribute greatly to
employment and the recovery of pros
oerity in agriculture. That must be our
purpose"
REkDv rAHNrM olcMe