Evening star., 1932-03-29
TAXCOURAGE URGED
IN FORUM ADDRESS
Senator Reed Tells Radio
Audience to Let Congress
Have Support in Crisis.

The American people last night We're
called upon to meet the fiscal prob
lens confronting the country with
courage and vision, to the end that the
Government remain solvent and the re-
covery of business be fostered
Speaking in the National Radio
Forum, arranged by The Star and
broadcast ever a coast-to-coast net
work of the National Broadcasting Co.,
Senator Reed, Republican, of Pennsyl-
vania, declared that rigid economy
and taxation sufficient ito balance the
income with the outgo," offered the
only sane solution, and he urged his
auditors to let their Representative in
Congress know their sentiment in the
matter.
In this connection, he bespoke the
value of the sales tax, which has just
been rejected by the House, declaring
that the individual levy under its pro-
visions would amount only to So or Sc
per year.
Big Income Tax Impossible.
Don't allow yourself to be put off
with the statement that the trouble
can be cured by raising taxes on the
big incomes" he said, adding that,
while he is in favor Of this principle,
it is not possible, through such
means, to raise the funds necessary to
balance the budget.
Senator Reed also hit at the argu-
ment for bond issues to keep the Gov
ernment going. asserting the plain
truth is that we can't sell Government
bonds in sufficient amount
Furthermore" he said, Congress is
talking about putting out two billions
of bonds to pay in advance the bal
ance of the soldiers bonus, and there
seems to be very real danger that
this bill will pass.
Il want to tell you solemnly." he
emphasized. that if We try to float two
billions Of bonds for that purpose, and
another two billions to pay this years
deficit, We are going to meet the dis
aster of our lifetime"
The speaker warned likewise of the
dangers OF currency initiation.
Text of Address.
The text of Senator Reeds speech
follows:
In recent weeks the newspapers and
the radio addresses have been full of
references to this mysterious subject
called Balancing the Budget" In the
time that is allotted to me tonight 1
want to describe the situation just as
simply as possible. leaving cut the jar
gon and long words that We politicians
use so often. I will try to talk about it
Just as if we we're sitting III front OF the
fire together, and then I want to show
quite plainly how this question affects
you and me and every other person in
this land. I am not going to make
political speech at all, and 1 believe
that what I will say would be lndorSed
by most Republican and Democratic
leaders, regardless of party.
Since the war we have been depend
ing very largely on the income tax to
furnish the money to run the National
Government. After the slump hit us
everybody's income was reduced. and
consequently the income tax has fallen
off fearfully. Our tobacco tax and our
customs duties have kept up quite
steadily, but the income tax has shrunk
to pitiful fraction of what it was two
years ago. AS result of this the
United States Government has been
running into the hole since last Sum-
mer at the rate of 100000 a day,
which in itself is toe big an amount for
the average mind to grasp. 1t is easier
to understand how serious it all is If
we remember that that means SIS 1000
per minute. Let me say that again.
Since last July the National Govern
ment has been spending over and above
It's income at the rate of $1,000 for
every minute of the day and night.
Stated that way, we get some idea of
the seriousness of the situation. Our
deficit in the last nine months amounts
to the terrifying total of $1,000, 100000.
l can hear somebody say, What
reckless extravaganza that is, and why
don't we quit spending SO much?" And
that Is proper question. If the whole
trouble came from the extravaganza Of
Congress, the answer would be simple,
and it would be up to Congress to stop
its extravaganza at once. There are
some savings that can be made, but
they are only a drop in the bucket
compared with the shortage that faces
us. We must remember that a large
part Of our expenses are beyond the
control of Congress. Such, for example,
as the payments We must make on the
Liberty bonds and the payments that
have already been promised to the vet
Grams Of the last war. 1t is not within