Evening star., 1933-03-21

sulting from such a general banking
collapse. It must. therefore, be clear
to you that the fiscal affairs OF your
Government should be put in order,
that a successful accomplishment Of
this task has a profound effect upon
| your lives.
Approach to Task.
An approach to the task may be
through the imposition of new and
substantial taxes. or by drastic re-
trenchment. One billion dollars, on a
falling national income, Is a stupendous
sum Of money to raise by new levies.
Our people are already overtaxed. The
farmer is carrying an inSupportable
burden. The merchant is dragged down
by the sheer weight Of taxes. The in
dustrialist is compelled to restrict his
production, to put men out Of jobs by
reason of the tax burden he is carry
ing. 1t Is not wise, therefore, In the
interests OF recovery, If 1t can be
avoided, to increase the levies ON you.
But more than that, there is some
question as to whether, even If the ad
ditional taxes were imposed, they would
provide sufficient revenue to accom-
plish the task and so, therefore, re-
renchment-draStic economy-iS the
only way in which economic chaos can
be avoided. 1t is for these reasons that
immediate action was taken. The bill
to maintain the credit of the United
States Government, otherwise known as
the economy bill, was the form which
that action took.
It dealt with three things: 0) Sub
ject to certain principles which were
laid down/n it, it authorized the Presi-
dent to make readjustments in veterans
benefits; ca it directed the President
to apply cost of living standard to
the compensation of the employees of
your Government and to reduce their
compensation correspondingly; and 90
it amended certain provisions of ex-
isting law giving the President the au-
thority to reorganize the activities of
your Government and to eliminate un-
necessary agencies. For few minutes
propose to deal with each one OF
these three things.
Burden Of Veterans.
During the course Of the last 10 years,
when money was plentiful when the
revenues if the Government were great,
and all Of us were riding on a wave of
extravaganza, veterans legislation had
been enacted by Congress which i'm
pOSeQ IlUI OIlly d pIeScllL SIdSSeIlIlS
burden upon the Treasury and, there
fore, upon you, but which also imposed
cost which, projected 20 years into
the future, would have absorbed all,
and more Of the revenues which the
Government derived during boom days
on account of the income tax receipts.
This was the effect Of these laws. What
they actually did, quite irrespective Of
their financial consequence, was to per-
init veterans who had no disability of
service origin, many of whom had been
in the Army but for limited period
of time, thousands Of whom had never
been in combat with the enemy, to
draw substantial monthly cash benefits
from the Treasury of the United States.
and therefore, from you.
The provisions Of the economy act
having to do with veterans benefits will
restore the just principle of granting
pensions to those who made q physical
sacrifice for the security Of our coun-
try. It will not strike from the rolls
those men who suffered a disability in
the service of their country. 1t will
not injure the man who was wounded
or who incurred a disease while fol-
lowing the flag. On the contrary, 1t
protects these men. It makes the pen
sion roll roll of honor. roll on which
man can be proud to have his name
listed. This is the effect of the vet
erans' provision Of the economy bill.
It Is true that the powers granted