Milford chronicle., 1932-03-04
SECRETARY HYDE EXPLAINS
"PORK BARREL" MEASURE

railrOaded through a bill for $132,
100000 for roads. The bill was pro,
duced on Friday and pushed through
under very stringent rules, or
Saturday. A bare twenty-four hours
notice was given. No consultation
was held with the Treasury which
must propose methods of taxation tc
meet the expenditure. No advice was
sought from the Ways and Means
Committee as to how they are to
meet so large an increase in eXpen-
diture and balance the budget.
The bill was passed in entire dis
regard of the assurance given some
weeks ago to the country by the
Democratic leadership in the House
that they would oppose al lauthori-
2ation bills, and after they had Sc
verely trimmed the budget recon-
| mendatiOns for funds for depart
mental services. From the regular
road appropriations for this depart
ment, fO rinstance, they deducted,
with great parade of economy, the
sum of $10,OO0,OOO. They now pro-
pose to spend $l32,000000 for the
7Al4G lJll lJOOCSs NJ I lllllG MIlCH lDC
country is crying for economies of
administration and expenditure,
they pass bill which requires more
expenditures than all of the econo-
mics which have painfully and la
boriously been achieved by the APP
preparations committee. g."
The bill purpOrts to be'a bill for
the relief of agriculture and of I'M
employment. So far as agriculture is
concerned an expenditure of a max
imu mOf $200,000000 for crop pro-
ductiOn loans has already been pass
ed. | should like to call attention,
also, to the fact that, as to the $l32,-
100000 road bill, the farmer will
gain in only part of the fun, and
will be compelled TO pay, directly
and indirectly, considerable por-
ton of the additional taxes which
the bill will necessitate.
The Treasury Department and the
Ways and Means Committee have
been working in complete harmony
and with courageous determination
to balance the budget and to pre-
serve unimpaired the credit of the
United States Government. This is 4
matter of vital concern to every per-
son in the country. 1t is the corner
stone of renewed prosperity. The |
price to be paid is increased taxa
tion, but not one penny more should |
be levied in taxes than the needs Of |
the situation imperatively demand. |
increases in corporation, |
income, and estate taxes have been |
proposed to the maximum limit. Ey-
en- these are not adequate. 1t has |
been found necessary to resort to a |
sales tax. Therefore,
the increased burden imposed by |
this bill must be met, if met at all,
by further increases in taxes upon
commodities and services. The far
mer is large purchaser of such
and will have to pay |
his part of such increased taxes.
An excessive increase in road eX-
penditures from the Federal Treas
ury this year would undoubtedly en-
danger the stable development of
the Federal aid program in the fu-
ture. Excessive emergency support
of Federal aid in some years will /
result in insufficient sup
port in other years, and thus inn
pair the whole program. That would
be disastrous. An assuer annual pro-
gram is much more important to the
proper development of our highway
system than any possible emergency
Ind artificial stimulus which is of
necessity temporary in its nature.
The $132,000,000 provided by this
ill will give, directly and in itself,
to about $4,000 people.
This out of six millions unemployed.
True it will create some indirect |
but the number so ben
fitted will certainly be less than the
lumber directly affected. BY eX-
racting $132,000,0O0 additional
unds from agriculture and indus
ry we shall impose still further
strain upon the country and shall
Ieprive more people of employment
Indirectly than we can employ di-
ectly.
The bill has more of the aspects
# the pork barrel than of relief
rom unemployment. Our experience
asst year is in point. The Federal
government made an appropriation
1hich resulted in an expenditure Of
155,000,000 additional Federal
lnds for road building. The States
nd local districts reduced the eX-
enditure of their own funds by
hree-fourths of this amount. In
ractical operation we expended
l55, 100000 more Federal funds, but
ecured an increase in total funds
xpended-local, State, and Federal
of only $33,000,000. The net gain
l employment from Federal funds
as disappointing. The net result
as larger and disproportionate
rain upon the Federal Treasury.
The ALLEGATION of the fund would
e made under the law regulating
)ad funds, rather than upon a per
lpita basis. The benefits of the
ind, therefore, would be unequally
The States having the
asst population would receive the
rgest per capital ALLEGATION. The
tates having the greatest popula-
on and the largest unemployment
'oblem would receive the smallest
sr capita ALLEGATION. The bill does
1t go to the problem of unelnploy-
ent on the basis of need.
But further than all this, if there
to be economy in public eXpendi-
res and relief from burdens Of
xation upon the people economy
rfE l. 4