Evening star., 1933-03-21
STEPS TO BALANCE
BUDGET ARELAUDED
Harrison Praises Roosevelt
Savings in Address in
Radio Forum.

The steps taken under the Roosevelt
administration to balance the budget
we're described last night by Senator
Harrison, Democrat, Of Mississippi, in an
address In the National Radio Forum,
arranged by The Star and broadcast
over a coast-to-coast network Of the Ma
tional Broadcasting Co.
The indicated billion-dollar deficit for
the fiscal year 1884 has been eliminated
by this program. it was explained by
the Mississippian, who is chairman of
the Senate Finance Committee. He
cited the following figures: A saving of
$500. 100000 to be accomplished by re-
ductions in veterans compensation and
Government; $l50,000,000 to be obtained
from the beer tax. and $137,000,0 900 by
continuing the Federal levy on gasoline.
Touches Veterans Question.
On the question Of veterans allow
ances. Senator Harrison said the new
economy act will restore the just prin-
ciple of granting pensions to those who
made physical sacrifice for the secu-
rity of our country"
The Government pay cut which, he
amplified, is to be based on lowered cost
of living, treats all alike with fairness
and equity"
Mr. Harrison praised the Republicans
In Congress who have co-operated with
the administration forces in meeting
what he described as "this great crisis
in our country's history"
The text of Senator Harrison's speech
follows:
Tonight, I am going to try to ex-
plain what a balanced budget IS,
why it is necessary, and the steps
which have been taken in less than
two weeks to accomplish it.
A balanced budget means no more
and no less than living within ones
income, bringing ones expenditures
into balance with ones revenues This
IN our domestic lives, do this very
thing. We balarite our domestic bud
get. It Is no less important that gov
ernments balance their budgets; that
they bring their expenditures into
equilibrium with their revenues. I say
this is no less important than in our
domestic lives because your life and
mine, in large measure, depend for
their fullness upon the preservation Of
the credit of your Government. The
security Of the deposits which you
have in banks rests upon the credit of
your Government. The validity of your
iiloul d1lSC POllSlCo 1CoG Gilc
OF this Government. In some meas
ure. the security of your employment
rests upon the credit OF the United
States Government. In short, the well
fare of every American rests upon the
credit of the United States.
During the first year of the depres-
sion the deficit amounted to almost
S500,000,000. During the second year
our governmental expenditures ex-
ceeded our revenues by almost $780,
100000. During the third year, the
expenditures will exceed our revenues
by more than 81 900 900 900. This
makes three continuous years in which
We have piled deficit upon deficit to
the extent of almost $4,000, 900 900.
National Debt Increase.
At the same time, the total net in
crease in our national debt will have
increased over the same period of time
In the amount of more than $5,000,-
100000. Nor is this all. 1t is conserva-
lively estimated that the deficit for the
fiscal year 1888 will approximate
81 900, 900, 900.
This situation cannot be ignored. It
Is a grim reality. 1t would not be so
serious were our national income at its
normal level, but, coincident with the
accumulation of these great deficits,
our national income has steadily di-
minished. The revenues have likewise
bteadily diminished. The expenditures
have remained constant or have in
creased. BY reason of the fact that
Dur national income was falling at the
time our national expenditures were
tising, these deficits we're inevitable,
and, what is more, the previous alb
sence of determined effort to elimi-
hate them had aroused suspicion
that the expenditures of the Govern
ment would not be brought into bal
hnce with its revenues. The credit of
the United States was hanging in the
balance.
1t must, therefore, be clear to you
that these large peace-time deficits, the
largest ever experienced in the history
of the world, are having a profound
effect on the safety of our economic |
order and upon the happiness and full
ness of our lives. In large measure,
the general suspension of bank pay
ments which we experienced and out of |
which I hope we have successfully |
emerged, can be traced to the policy |
of continuously living beyond our |
governmental income. You know, at |
FIRST hand and by experience. the par
alysis the hardships entailed and re-