Evening star., 1932-04-27

The causes which have led to this
extraordinary increase in expenditures
and debts are familiar. They include
the burden on the Federal Government
imposed by the war. This accounts for
nearly $4,000 ,000, 900 of annual expen-
ditures and for most of the increase in
the debt You will observe that outside
Of the war influence our greatest in
crease in costs of Government lie in
local and municipal agencies.
Hits Sectional Demands.
In all our governments, however, Fed
eral, State and local, enlargement Of
expenditure and of debts has been
caused in part by the increase in popu-
lation, the rise in commodity prices and
wages; by the improvement and new
building Of roads, streets, waterways
and airways, imposed on us through the
development of the internal combustion
engine, and by the growing sense of
social obligation to improve education
and to enlarge activities in behalf Of
welfare and relief. In addition, re-
gret to say, increase of Government ex-
penditure and of debt has been caused
by sectional and group demands and
by large expansion of national, State
and local ventures into businessmen
Of which we perform in a most costly
manner. Just as the methods and
practices in private business and living
have had to be overhauled in this emer-
gency, so must we also overhaul the
methods and practices of Government.
Today we are clearly absorbing too
great a portion of the national income
for the conduct of our various branches
Of Government. Using the most reli-
able figures available, 1t appears that
before the war the total cost of our Ma
tional, State and local governments
represented only about 8 per cent of
our national income. In boom times,
when We might hope that the national
income would increase more rapidly
than the cost of Government, never
theless the cost of Government actually
increased to such an extent that 1t rep
resented approximately Is per cent OF
the national income, of which less than
per cent was directly due to the war.
Today, with the falling off Of business,
the aggregate expenditures of National
| State and local governments probably
| represent more than 20 per cent OF
the national income.
Before the war, theoretically every
man worked 25 days year for the Ma
| tional, State and local governments
combined. In 1924 he worked 46 days
year. Today he works for the support
of all forms of government 81 days out
of a year. Continued progress on this
road is the way to national impoverish-
ment.
Would Curtail Activities.
Some Of the expenditures in Govern
ment can be reduced by postponement
Of less urgent matters, some by perma-
| nprt pliro ottnt1 "a 80
tionS and activities which have been
created over the last SO years in re-
sponse to the desire for expanded serv-
Ice by the community. These ex-
panded services are some obsolete, but
many of them merisorious But every
executive is confronted by the fact that
they are established by law and can
only be reduced by authority Of new
legislation.
There has been also the growth OF
useless duplication and waste. Many OF
you have already pointed out and are
today struggling to reduce the multi
| plicity of local governments. Many OF
these administrative units have been
rendered obsolete by improved COM
munications and transportation. In the
Federal Government we have likewise q
| large number of functions which should
be grouped and consolidated.
| In an emergency these weaknesses be-
come more APPARENT, and public attention
to government and taxes offers oppor-
tunity for their revision. We cannot
restore economic stability in the Nation
| by continuing to siphon so large part
of private effort into the Golfers of the
Government; its abstraction from the
people stiles the productivity, the con-
/ sumption and the recovery Of employ
ment. Nor can we hide our heads ir
the sand by borrowing to cover current
Government expenses, for thus we drair
the capital of the country into public
| securities and draft it away from in
duStry and commerce. Thus a dominant
national necessity Is to reduce the ex.
penditures of all our governments
This is not only the need-it is the uni.
versal demand.
Warns Against Dangers.
know that every dollar of decrease
| in expense, every plan Of consolidation
IN governmental activities, touches some
sensitive spot where it causes pain anc
resentment. While the people as a whole
demand and applaud these endeavori
toward economy in the large the com.
plants and threats Of sections anc
groups greatly impede the concrete eff.
forts of all executives and legislators A,
] result, one of the difficulties that al
executives face IS the tendency to Sc.
cure reduction Of expenditures at ths
cost of those services necessary to pro.