Evening star., 1932-03-26
keystone of Recovery.

Keystone OF Recovery.
The very keystone of recovery -
President Hoover has told the Nation,
is a balanced Government budget. The
Nation. if it be wise, will pass this word
along to the Congress with good effect.
The President in his statement on the
need of a balanced budget gives credit
to the Democratic leaders. as well as to
the Republican leaders. of the House
for willingness to balance the budget
by strict economy in Government ex-
penditure and by increases in taxation.
The leaders. however, must be backed in
this task by the rank and file of the
House membership.
The members of Congress have been
deluged with letters of protest against
the manufacturers sales tax, now elm
mated from the revenue bill pending
before the House They have been
swamped and will continue to be
swamped with messages of all kinds
attacking other proposals to impose
taxes. All sections of the country, all
industries upon which the proposed
taxes fall, are up in arms. Nearly all
of these protesting citizens, however
are willing to have the budget bal
anced provided the tax is levied against
some other fellow The American peo-
pie under the impelling force of war
have made great sacrifices in the past.
They have given lives and treasure to
preserve the Nation. There is now no
question of sacrificing life. It is merely
q question of participating in huge
drive to place Government financing
again on a stable foundation. 1t is a
drive, however, that Is as essential to
the welfare Of the Nation as the enlist
ing and training of an army for war.
Peace has its vital problems. One is
at hand. Courage is the great need.
Other peoples have shown courage in
these postwar days. When the British
less than year ago determined that
salvation for their nation lay in bal
anced government budget and pro-
ceeded to balance 1t the world ac-
claimed them as brave and courageous
people. The taxes which the British
levied In their effort to save their ma
tional credit and at the same time save
their country from disaster make the
proposals put forward for balancing
the budget in this country pale almost
into insignificance. The United States
still continues the richest nation on
the face Of the earth. The taxes which
1t is now proposed to levy, spread over
the entire country and designed to fall
with greatest weight upon those who
have the greatest wealth and are best
able to carry a further burden, will
drive none to desperation.
President Hoover in his demand for
q balanced budget has pointed to the
need of curtailed governmental ex-
penditures. Unfortunately too many
Americans who today are protesting
against increased taxation are at the
same time demanding increased gov
ernmental expenditures. The threat
Of another so-called soldiers bonus bill,
proposing to compel the Federal Gov
ernment to produce for the veterans
another billion or two dollars, hangs
over the Congress and the Nation
today.
The time has come when the in
dividual member of Congress must show
courage in the face of protests from his
constituents At the same time. it is
the duty of the constituents to cease
selfish protests and more selfish de-
mands The President has rightly
pointed out that recovery of business,
with employment for those out of work,
depends in large part upon the stability
of Government credit How can there
be hope for stability of credit or in
dustry in this country unless the Gov
ernment itself is on sound founda-
. ticn2 Government securities have been
In the past the very basis of the credit
structure. The people have come to be-
lieve in the soundness of the Govern
nent issues. Take away that faith in
the financial stability of the Govern
ment and panic of far greater pro-
portions than that Of 1929 will seize the
country. The President has called at
tention, too, to the fact that it is the
man or woman of moderate and of
small means who always suffers more
severely in such financial crisis. The
margin of safety is narrow.
The House Ways and Means Com
nittee is struggling again to find
sources of taxation to balance the bud
get An hysterical outcry against the
manufacturers sale tax has made it
necessary. 1t is no time for further
hysteria