Evening star., 1933-03-17
Maintaining National Credit.

The title of the economy bill which
received final approval in the House
yesterday afternoon and now awaits the
Presidents signature is, AN act TO
maintain the credit of the United States
Government"
This title gains its full significance
when studied in relation to the most
important and the most controversial
feature of the bil-the reorganization
of the entire pension system OF the
Federal Government. When taken to-
gether, the title of the bill and the chief
method to be employed in reaching the
objective laid down in the title, it means
that the maintenance OF the credit OF
the United States Government in large
measure depends upon reorganizing the
pension system.
Pensions, since the beginning Of the
Government, have steadily increased.
The enormity of the cost Of the pen
sion system. which may be said to in
clude all the various forms Of relief
machinery set up to aid veterans OF all
wars, is readily understood when it Is
realized that the total receipts from
income taxes are no longer capable of
meeting this cost. In the last fiscal
year veterans costs came to Sl,064,-
268,966, while the total receipts from
income taxes were 81 057,335,853. AS
the Government has come to rely on
income taxes to supply more than half
of its revenues, the credit OF the Fed
eral Government is in danger of being
impaired when income taxes fail to pay
for merely one of the Governments
functions. The root of much of the
sentiment among taxpayers against the
growing cost of the pension system lies
in the fact that the income tax payer,
sweating under an increasing burden,
has come to realize that his income
tax contributions to his Government
are not enough to support that system.
The growth of the system since the
World War has been rapid but the
growth has nevertheless been by de-
grees. Trivial changes in liberalizing
features of the pension laws have ac-
counted for millions Of additional ex-
pense. And each hberalizing item
tended to grow heavier in cost with the
passing years.
The President has been courageous
enough to accept the responsibility that
Congress heretofore has been unwilling
or unable to accept. In his hands now
lies the unprecedented power to shake
up the whole system and rid 1t Of the
features that have borne down so
heavily upon the taxpayers, and to do
this without injuring those veterans
who, by honorable service and sacrifice
to their country, may claim the title of
deserving beneficiaries. No power ever
given to President exceeds this power
In large measure his political fate rests
upon the use he makes of it.
1t is in some degree restricted The
Civil War veterans will have their pen
sions cut by ten per cent. But, except
IOI Illc NlFA WAL NcIcId1lS Tile TOll OF
the pensioners is to be torn up and a
new one made. 1t will include the
veterans who suffered injury or disease
in line of duty or those whose dis
abilities were aggravated in line of duty.
1t will include the veterans permanently
disabled, the dependents of the veterans
injured in line Of duty, the depend
ents Of deceased veterans who served
prior to the World War and the
Spanish War veterans who are more |
than sixty-two years old. The Presi-
dent is empowered, with certain min
imum as well as maximum limitations, to !
judge as to the disability for which |
benefits are to be paid. The present |
payments will be continued for three
months On the fourth month the new
list of beneficiaries and payments will |
become effective.
What the "act to maintain the credit |
of the United States Government" seeks
to accomplish is to destroy the rambling |
and bulky pension system and to rebuild
1t according to new plan. OF all the
Presidents new deals, this one is out
standing