Evening star., 1933-03-14
RA|NEY SAYS TAXES
WILL Be CURTA|LED
Forum Speaker Voices Hopes
Reduction in Pensions
Will Be Temporary.

The budget is going to be balanced
without resorting to additional irritat-
ing taxes" Speaker of the House Rainey
emphasized last night.
In an address in the National Radio
Forum, arranged by The Star and
broadcast over Nationwide network
Of the National Broadcasting Co.. Mr..
Rainey said that "the people of this
country have been taxed all they are
willing to stand"
m Illinois Democrat, who just came
to the SpeaDsship, discussed the meas
ures undertaken in this new session OF
Congress to meet the emergency, and
predicted that I'VE will in the near fu-
ture win the economic battles in which
we are now engaged"
Hopes Cut Will Be Temporary.
In this connection, he voiced the hope
that the cut in pensions and compensa-
ton which the President would be en-
powered to put into effect under pending
legislation will be temporary"
Almost billion dollars worth Of Gov
ernment obligations soon must be re-
funded, Mr. Rainey said. but he added
that this will be accomplished without
trouble when a balanced budget makes
1t possible to do this at reasonable rates.
The Speaker also pointed out in a
discussion of the banking situation that
it is to be expected some banks will not
be reopened Immediately because of the
steps that must be taken before they
resume operations. That, however, does
not mean that they are not sound, he
emphasized.
The text Of Speaker Rainey's address
follows:
THE problems ahead Of the President
and the Congress in this extra session
look serious indeed. We are compelled
in few days to refund almost billion
dollars worth of Government obliga-
tions, and we have only about $50, ,000,-
600 In the Treasury, and we have con-
siderably less than $4,000, 900 In the
entire Federal Reserve system. Today
the Federal Government is running be-
hind at the rate of six or seven thou
sand dollars minute and our Federal
deficit IS again assuming enormous pro-
portions in spite of the new and irritat-
ing taxes imposed earlier in the year.
There are 10 or IL million unem-
ployed and the buying power Of farmers
and Of others has been practically de-
stroyed. Our factories ere idle. Our
foreign trade has fallen off alarmingly.
The receipts Of the Government from all
possible sources have decreased 40 or
80 per cent.
THE situation looks gloomy, indeed,
but we have already taken, under the
present administration, the initial steps
which look toward complete economic
recovery in the near future and the
banks OF the country have been saved
1t was necessary to invoke a war meas
ure OF the Wilson administration to ac-
complish this result. Today all over
the United States banks have COM
menced to open again under close Gov
ernment supervision. It will probably
require some days Of time to get all the
banks reopened which are In condition
to function.
The job undertaken by the Treasury
Department seems stupendous, but 1t IS
rapidly proceeding. The budget must be
balanced this year, and we are going to
balance 1t without resorting to addi-
t1onal Irritating taxes. The people of
this country have been taxed ali they
are willing to stand, and they have been
pdtleuC ana long Suuef1ng.
Reductions Authorized.
DAY before yesterday the Congress of
the United States, by an enormous ma
Jority, took the first steps towards bal
ancing the budget without additional
taxes. We turned over to the President
the right to drastically cut the expenses
OF the Federal Government, including
IN the cut the pensions and compenSa-
tons paid to veterans Of all Of our wars.
1t is hoped that these reductions will be
temporary.
I'VE must first put our national house
IN order. We must first re-establish our
complete solvency before business can
move IN its normal way. The encour-
aging thing about 1t all Is the patience
with which the people of the United
States have stood their suf1erings and
have remained loyal to the Government,
and today all over the United States
citizens of all parties are standing soIidlv
back Of the President.
THE present session OF Congress will
be historic. It Is more important even
than the war sessions. It was easy dur
ing the war period to stand back of the
PRESIDENT when flags were flying and
oands were playing, and when our
armies were proceeding across the seas
to engage in battle on foreign soil. But
we are engaged in a war now more
serious than the World War. During
the entire period Of our history as
Nation we have won our battles ALWAYS
when they involved a clash of armed
forces on land or sea. We can ALWAYS
assemble when we are threatened bv
foreign foes, great armies In remarkably
short periods Of time. There are more
fighting men of the white race in the
United States than in any other coun-
try In the world.
People Form United Front.
cit requires greater courage to fight
the war in which we are now engaged,
but the people of the United States are
rising to the emergency and with
united front we will in the near future
win the economic battles in which we
are now engaged.
With a balanced budget assured 1t
will be easy to meet with new bond
issues and new note issues at reasonable
Il l.