Evening star., 1934-01-04
BUDGET COMMENT
VARIED IN NATURE
Reed Hopes President Will
Keep Debt Limit at Pro-
posed Level.

Senator David A. Reed, Republican, of
Pennsylvania, commenting today on the
Presidents budget message to Congress,
said:
Il would not be alarmed at all at a
public debt of $31 $3.50 600, 900, provided
I was sure that the President would
stick to his guns and not allow the debt
to be increased. The American people
can swing debt Of that size without
difficulty The per capita debt will be
less than that in Great Britain.
Recalls Earlier Pledge.
"The President before he was elected
declared that it was unthinkable this
Government would repudiate its con
tract to pay its obligations in gold. Yet
this contract has been swept ASIDE
Either through necessity or through
from time to time his monetary and
fiscal policies. I wish I could feel Ger
tain that the public debt can be kept
within the bounds now recommended.
When it becomes necessary to pay OF
this debt increased taxes must be
levied"
Speaker Rainey said the amount OF
the deficit for this year lis startling in
deed" according to the Associated Press.
Senator Dickinson, Republican OF Iowa,
said the budget set IAN unknown peace
time record of extravagant expenditures
and willful waste"
Sees Nothing Alarming.
Rainey added that there is nothing
SO alarming about an increase Of five to
six billions more in the national debt
when the normal national income is
around 78,O00,000,000.
THE deficit won't be paid all In any
one year, but in time
Dickinson said:
This fiscal program Will impose a
tax burden on this generation and on
many generations to follow.
This country cannot continue to ex-
ist alf-subsidiZed and half-victlmlzed.
To borrow $4,000, 100000 between now
and July may be but the beginning
of the end SO far as stable Federal
finances are concerned.
Others said:
Representative Smell of New York, the
Republican leader: Il am so overcome
and shocked by the amount these fel-
lows propose to spend that it Will take
me several days to catch my breatn.
Holds Debt Reasonable.
REPRESENTATIVE Somers, Democrat. of
New York: That debt is within rea-
son. Governmental deficits in time OF
depression are beneficial"
Representative Rich, Republican, OF
Pennsylvania: Increasing the debt TO
s3l 600 900 900 makes the figure much
higher than it should be-.
Representative Mapes, Repubncan. OF
Michigan: What every one IS asking
is where is the money coming from. IL
certainly is a staggering amount.
Representative McGugin, Republican,
of Kansas: Il am not enthusiastic
about running up this debt" .
Representative Luce, Repuolcan, OF
Massachusetts: while it Is probable
that with the inevitable return. OF
prosperity we may be able to reduce
the debt with reasonable speed as we
did after the war. the grave danger Is
that it will be so increased as to weaken
the public credit and bring on another
reaction which may be a most serious
calamity"
Harrison Praises Message.
Chairman Harrison of the Senate
Finance Committee, termed the buoget
message a very clear summary OF the
conditions of the Treasury" and pre-
dicted the Government would be oper-
ating "in the black" by 1896 or some
time sooner.
Senator Townsend, Republican, OF
Delaware thought the message would
throw a chilli over the country be-
cause of the prospective increase In
public debt in the next two years to
over S31 900 0000.O0o.
Senator McNary of oregon, the Re
publican leader, said the sums recon-
mended were the largest in peace time,
and we will have to slow down In the
process of spending or we will never
come back in earnings"
Senator George, Democrat, Of Geor-
gia: THAT is what was expected under
the circumstances. The deficit is being
cared for in a very intelligent way"