Evening star., 1933-01-17
THE full text CT Secretary Mills
address last night in the Ma
tional Radio Forum, arranged
L by The Star and broadcast by
the National Broadcasting Co.,

the National Broadcasting Co.
follows.
I have been asked TO speak TO you
this evening on the subject of Federal
finances. This sounds formidable. AS
o matter of fact, however, our fiscal
problems can be simply stated and
readily understood. Were it not for the
political factors, even their solution
would be comparatively simple. They
become complicated only when dealt
with in terms of accounting verbiage,
or II we lose ourselves in a maze of
unnecessary details. While the carry
ing out of determined policies does re-
quire technical skill and detailed appli-
cation, few essential facts and a
broad outline of our present financial
situation are all that are necessary in
order to enable us to grasp the char
acter of the problem that confronts us
and to make the necessary decisions.
Our total expenditures for this
fiscal year which ends June 80. next,
will aggregate $3,77l .000, 900, exclusive
of public debt retirements. These ex-
penditures will be devoted to the fol-
lowing purposes: Six hundred and
rlinety-five million dollars are required
for interest on the public debt. s134,-
100000 represent excess of postal ex-
penditures over receipts, $4,000, 600
customs drawbacks and internal revenue
refunds, .s2l,o0o,0 900 payments to the
civil service retirement fund and $751;
100000 on trust fund account, such as
the Government life insurance fund,
trust funds for the benefit of Indian
tribes, expenditures of the District of
Columbia government, etc, or a total
OF 1904, 200, 900 of unavoidable obliga-
tions. We shall expend about $780,
100000 for national defense-an amount
which, until greater progress is made In
international disarmament, cannot be
safely reduced; about $500. .000, 900 ON
our veterans (both exclusive of con-
struction items) and about 5000 600, 900
on public works In completion of the
program already embarked on, making
. total for these purposes of $2,-
150, 100000.
Bureaucracy Picture Misleading.
This leaves about $500, 900, 900 for the
ordinary running expenses of the Gov
ernment, including the legislative and
judicial branches: fiscal administration
and control Of banking and currency,
foreign relations, conservation, educa-
ton, promotion of the public health,
Indian affairs. aids TO agriculture, labor,
aviation and industry. In other words,
II we exclude the unavoidable obliga-
tions, such as public debt expenditures,
and exclude the Army, Navy and vet
Grams, the ordinary expenses of the Fed
eral Government are approximately
S500,000,0o0. I stress this point be-
cause of the misleading picture that
has been painted of an immense and
costly bureaucracy and of the vast saw
tngs to be effected through a re-
sr.y-rrry nfxaA AfrwSr -
nent. Such reorganization is desirable
in the interest of greater efficiency and
greater economy. but substantial relief
to the taxpayer must be sought else
where.
The President in his budget message
has indicated how and where economies
can be effected.
The 1894 budget, as supplemented,
contemplates expenditures, exclusive of
public debt requirements, of S3,233, ,000,-
600 for the fiscal year 1884 after all de-
ductions proposed by the President, as
compared with $3,771 .000,0 for the
present fiscal year, or saving Of $685.
100000. This would be accomplished
In the main by curtailing expenditures
for public works by about $3.50, 900 900;
by amending veterans legislation to do
away with certain unjustif1able pay
ments resulting in reduction of $127,-
100000; by the application of the
strictest economy IN the various de-
partments and bureaus Of the Govern
ment, and q further reduction in sala-
r1es Of s57,o0o,ooo.
Reduction Real Achievement.
ove- half billion dollars, following
the substantial savings already effected
this year, would constitute real and
fruitful achievement. 1t Is the first es-
sential step toward bringing the budget
into balance and laying a foundation
for ultimate relief to the taxpayer. i
know of no reason why the country
should not get the benefit Of these re-
ductions in expenditures. I am not
talking OF vague and theoretical pro-
gram. Every one of the economies
that 60 to make up this saving Of over
half a billion dollars is set out in detail
In the budget message. 1t requires but
the affirmative vote of the Congress to
make these economies effective, and
both parties are pledged to drastic
economies and to balanced budget
The time to make good these pledges is
now. The need is obvious. The plan Is
there. There is no excuse for further
delay.
But this Is only part of the story.
Even II current expeditures are reduced
to So. ,O00, 900, the budget will not be
in balance. The total receipts, exclu-
sive of foreign debt payments which
recent events have made highly un-
certain item, are estimated at $2,620,-
600 600, leaving q gap Of $613, 600, 900
which will have to be bridged by in
creased taxation. Assuming that we
shall collect something on foreign debt
account, we need, roughly speaking,
half billion dollars Of additional re-
ceipts.
The situation thus may be summa-
rized by saying that, exclusive OF public
debt items, our Federal budget may be
brought into balance in the next fiscal
wear by reducing expenditures half a
billion dollars and by providing hall
billion dollars of new money. But THIS
does not afford provision for sinking
fund obligations, and 1t presupposeS
that no new obligations OF any klno
will be incurred.
Message Details Savings
The savings, as I have said, are set
ont in detail in the budget message.
When appeared before the Ways and
Means Committee on December IA
when the so-called beer bill was under
consideration, I pointed out that the
beer bill alone, yielding, say, 81, ,00o,-
600 or even coupled with the gasoline
tsx Welding another s137 900 900, could
not be expected to produce the neces-
sary revenue-in fact. they would only
produce about one-half-but that COM
bined with a general manufacturers
excise tax they would furnish base OF
taxation sufficiently broad to give ade-
ouate assurance of a balanced Duoget.
Without the manufacturers excise tax
II will be extremely dificult to balance
the budget, sine the field Of new taxes
has ben pretty vel exhausted by the
revenue act OF 1882.
1t should not be forgotten that we
~do,taS ipco,oa tay rates that rlln as