Evening star., 1933-04-07
'HITs FALSE ECONOMY"
Board Of Trade Resolution Forwarded
to Senator'S

Citing instances Of "false economy"
In the Budget Bureaus estimates for
the District, the Washington Board OF
Trade today submitted to members OF
the Senate Subcommittee on District
Appropriations statement urging Con-
Rress to "differentiate distinctly" be-
tween the national and local budgets.
Declaring it views with apprehen-
sion" the present situation with respect
to the proposed 1933-34 budget for the
District, as well as the general trend OF
fiscal relations between the District and
Federal governments, the trade group
pointed out that the balancing Of the
national budget Is not aided by applica-
aion of national economy slashes to Dis
trict appropriations.
The cut of 40 per cent in the Fed
.eral Governments contribution toward
District appropriations during the last
fwo years was opposed by the Board OF
Trade In the statement, which was
drawn up by q special subcommittee
appointed by the organizations Execu-
tive Committee to act on the matter.
Wise and just balancing Of the Dis
trict budget demaurs restoration to the
supply bill Of iteIfs necessary Tor the
ADEQUATE maintenance Of essential mu-
nicipal functions, the group asserts.
Tax Burden Opposed.
Urging that excessive surpluses In rev.
enue derived from local tax sources
should be avoided by wise budget bal
ancing and tax readjlstments, the board
advocated as thd most important need
for the District leSsening OF the tax
burden on real estate and tangible prop
erty. Power to adjust taxes should be
fully vested In the District Commis-
sioners, the trade body feels.
The statement, a copy OF which was
Forwarded to each member Of the sub
committee, headed by Senator Elmer
Thomas, follows:
THE Washington Board Of Trade
views with apprehension the present
situation in respect to the propoed
1933-34 budget for the District Of Co
lumbia, and the general trend IN fiscal
relations between the District and Fed
eral governments.
While 1t Is fully in accord with the
necessity for national and local econ
omy for the public welfare, 1t sees
instances of false economy In the esti-
mates proposed by the Bureau of>the
Budget.
Primarily, we desire to call your at
tention to the fact that the national
campaign Is to reduce national expendi-
lures and to increase national revenues
in order to re-establish national credit
and to balance the national budget
and that the application Of national
economy slashes to the District appro-
priations will IN no way effect the bal
ancing Of the national budget, since
these cuts, with the exception OF the
national lump sum contribution, effect
nothing but District tax money, which
does not decrease in any measure ma
tional expenditures nor increase ma
tional revenues.
Contribution Reduced.
Further, the Federal Government
contribution was reduced In the ma
tional budget from $9,500,000 to 81.
$4,000 and, II the proposed budget L
carried through, 1t will reduce tn
Governments obligation to the expense
of the District of Columbia to s.,
100000, which would represent cut o
20 per cent In period Of two years
which Is far greater than any reduc
ton in any Federal appropriation dur
ing this period. We are opposed to thi
drastic reduction.
In the present cutting Of the luml
sum previous cuttings OF Questionet
legality are to be taken into considera
tion. BY substantive law, still unre
pealed, though an unsuccessful effor
1t, the national contribution Is 40 pc
cent Of the total District appropriations
A legal and equitable obligation Of tn
Nation would be recognized u today's
or cent c,lrtailment were applied