Evening star., 1933-05-18
Protecting the National Credit.

Nobody loves new taxes and, at this
time especially, the prospect of increas-
ing an already intolerable burden is a
dismal one, indeed. Yet, paradoxically
enough, there is comfort In the Presi-
dents firm insistence, in his message
TO Congress yesterday on the great pub
lie works program, that new taxes be
imposed In connection with financing
that program. He said:
In carrying out this program it is i'm
perative that the credit of the United
States Government be protected and
preserved. This means that at the same
time We are making these vast eXpendi-
lures there must be provided sufhcient
revenue to pay interest and amortiza-
ton charges on the cost and that the
revenue so provided must be adequate
and certain rather than inadequate and
uncertain.
This passage IN message that has
been eagerly awaited attains much Of
its significance in view Of the many
speculative rumors concerning the pos
sibility that the President might make
gram the instrument for utilizing his
recently-acquired powers over the cur
Tency, and that the country might wit
ness a resort to the printing press to
pay for the staggering sums it now pro-
poses to expend in the greatest of the
anti i-defation experiments yet under
taken.
In his message the President spikes
these rumors by making evident the
general outlines of a financing program
that contemplates borrowing and pre-
serving the credit and integrity Of the
Government by adopting hard and fast
and, no doubt burdensome methods Of
servicing the new debt. The sort of
taxation that will be adopted the Presi-
dent leaves-temporarily-to the Ways
and Means Committee Of the House
If within the week the committee does
not reach agreement on what may be
the outstanding issue OF controversy in
this session, the President will send
along his own recommendations for the
81
and enjoys the necessary public conf
dence, to be able to make his recon-
xnendations effective.
If the taxes agreed upon are fair
and levied with the thought of most
eQuitably distributing the burden, the
taxpayers can reconcile themselves to
the necessity Of Tightening their belts
and putting forth their best efforts to
make the money contributions neces-
sary to support their Government in
this war against the depression, just
Is they frightened their belts and made
personal sacrifices in support Of their
Government during other wars. It
should be the aim of the Congress to
impose the additional burden in way
that will bring the least hardship and
that will prevent further def1ationary
tendencies at time when everything
else Is being done to counteract the
already severe results of defation.
With an operating budget cut and
trimmed to approximate the size Of
revenue receipts, and with a sound
financing program adopted to service a
loan that will distribute the heavy cost
Of reconstruction over coming genera
tions, some of the dangers of imitation
run wild are Immediately prevented.
The credit of the United States Gcv-
eminent will be protected and preserved
when there is public confidence in the
intention and ability Of those who have
It in charge to protect and preserve it.
RefOreStatiOn does not appeal to