Evening star., 1933-01-17
MILLS DEMANDS
SLASH IN EXPENSE
Warns Against Continued
0verspending in Radio
Forum Address.
Continued From First Page }

tSOltluutQ rIOHl rIISl EhRe.J
prices would stimulate the capital mar
ket and create one of the conditions
essential to business recovery.
Criticizes Democratic Proposal
The goal is so definitely possible Of
attainment and the results will be so
beneficial in many direction" he said,
that one cannot help but be impatient
at the difficulties and delays, and even
more impatient at the uncertainty"
The proposal emanating from Demo-
cratic quarters for capitalizing public
improvements. to set up separate ac-
count in the Treasury to be covered by
borrowings, was sharply criticized by the
Secretary. 1T would be intolerable, :"
he said, IF on top of our failure to
meet our sinking fund requirements We
should resort to such bookkeeping de-
vice as withdrawing certain items OF
expenditure. from the ordinary budget
and setting them up in the form of a
special budget to be covered by bor-
rowings."
Public building expenditures. for in
stance, the Secretary explained, should
not be capitalized as private corpora
tions would capitalize such an expendi-
ture, for the reason that the new build
ings. he said, proved to be liability
with overhead and upkeep amounting
to more than the previous rent bills.
The sales tax is desirable. Mr.. Mills
claimed, because "it is the most prom
ising source of new revenue that we
can turn to at this time to assure the
safeguarding of the public credit" Ex-
planning that there had been time
when he did not favor manufacturers
excise tax the Secretary said but at
a time when our normal sources OF
revenue from exciseS and customs sup
plemented by income and inheritance
taxes imposed at wartime rates on not
more than two and a half million peo-
pie out of Nation Of l20,00O,OO0 are
inadequate to supply the necessary rev.
enue. the objections urged against the
manufacturers excise tax do not seem
to me to remain valid.
Time to Act Has Come.
Pointing out that by June 80 next
the Government will have closed three
successive fiscal years with large dehclts,
the Secretary declared 'the time has
now come to effect the necessary econ
omies and to make available the nee
essary revenues to put the Government
finances in order and the Government
credit on an unassailable basis. be-
lieye that such a step would have a
most wholesome effect on our national
economy, and that the retirement OF
the Federal Government from the
money market as a constant seeker Tor
new funds would have stimulating
effect on the capital market. TO which
we must look for the initial impulse
toward recovery"
The beer bill alone, he estimated,
would yield about SIPS, 100000 and the
gasoline tax about Sl37,000,000. But
many Of the new sales taxes already
imposed, he said, ARE difficult OF adj
ministration and not particularly pro-
ductive." Some" he declared, "are
inequitable and unjustifiable in their
present form"
THAT the budget should be bal
anced," the Secretary declared, is not
open to dispute. No matter how good
It's credit, no government can afford to
go on living beyond its means year after
year 1t is demoraliZing. Such prac-
tice runs counter to the fundamental
principles that should govern the man
agcment Of the pubSc business. 1t is
dangerous for public servants to acquire
the habit Of spending more than is cur
rently available, for it is habit easily
acquired and, once acquired, not easily
gotten rid of short of disaster"
Anniversary Marked.
The program last night marked the
first anniversary of the forum over the
National Broadcasting Co. network, and
was featured by message Of congratu-
lation from President Hoover.
In a letter. read BY Oliver Owen
Kuhn, maraging editor of The Wash
ington Star, the President said:
i heartily congratulate the manage
ment of The Washington Star upon the
first anniversary Of the Radio Forum as
Nationwide feature. The forum is
distinct service to the people of the
entire country. In a nation governed
by the will Of the people it is indis-
pensible that the public shall be inform
ed as to the facts of national problems
and that it.shall have the benefit Of the
counsel Of the most experienced public
men To distinguished degree The
Star Forum has met this need in its
weekly broadcast from the Capital
WY