Evening star., 1934-01-04

which may be obtained from an IN
crease In Atquor taxes and from the
proposed changes in the tncome-tax
law. Since neither Of the tax
measures has come before Congress
Is yet, no accurate estimate can be
made OF their yield. However, II Is
proposed by the Committee Of Ways
and Means. the tax on distilled
spir1ts<is increased from $1.1O q
gallon to 81 q gallon, and the rates
the estimated revenue would be in.
creased by approximately $4,000
900, assuming that consumption "a
not affected by additional gallonage
taxes imposed by the States. Con-
siderable additional revenue can
also be secured from administrative
changes In the income tax law,
which may amount to as much as
$15o,ooo, 900 for a full year.
The estimates for the Post ONCE
Department are predicated upon q
continuation of the Scent postal
rate for nonlocal mail. It is highly
important that this rate be con.
arce.
Economy Legislation.
The estimates Of appropriations
submitted in the budget are predi-
Gated on the continuation Of GER
tain economy legislative provisions
which I ask to be enacted and
which are appended hereto. The
most important is that having to do
with reduction of compensation Of
Federal employees. 1t Is eminently
fair that, the cost Of living having
fallen as compared with 1928, the
employees Of the Government sus-
tain some reduction in compensa-
ton. This is not inconsistent with
our policy of advocating an increase
in wages in industry. For wages
there had fallen far beyond any re-
duction contemplated for Federal
employees and in most grades are
even now substantially below COM
pensation paid Federal employees
under the maximum reduction of IS
per cent.
Among the legislative provisions
automatic increases in compensation
except in the Army, Navy and Ma
rine Corps. The personnel Of these
three services are engaged in a life
service to their country. Some, by
reason Of the pay freezes. have sus-
tained reduction in compensation OF
more than Is per cent. They are,
therefore, in a different category
from those in other governmental
agencies. They should. in 1885, be
released from the restrictions on
automatic increases in compensation.
Up to now there has been no CO.
ordinated control over emergency
expenditures. Today. by Executive
order, I have imposed that neces-
sary control in the Bureau Of the
Budget.
Heretofore, emergency expendi-
lures have not been subject to audit
by the comptroller general OF the
General Accounting Once. Today I
am, by Executive order, reposing in
him the authority to conduct such
an audit and TO continue to audit
each such expenditure. Hereafter,
therefore, Just as in the depart
mental expenditures, there will be.
in emergency expenditures, pre-
budget and a post audit.
By reason Of the fact that the
Bureau Of the Budget has had no
control in the past over the various
expenditures, obligations and allot-
ments made by the emergency or
ganizations. the task OF preparing
the present budget has been the
most difiicult one since the budget
and accounting act went into effect
in 1921. These difficulties, in future
years, will be substantially mini
rnized by the control which have
established.
It Is evident to me, as am sure
1t Is evident to you, that powerful
forces for recovery exist. 1t IS by
laying a foundation of confidence in
the present and faith in the future
that the upturn which We have 50
far seen will become cumulative.
The cornerstone Of this foundation
IS the good credit Of the Gov
ernment.
It is, therefore. not strange nor
Is 1t academic that this credit has
a profound effect upon the conf
dence so necessary to permit the
new recovery to develop into ma
turity.
II we maintain the course I have
outlined, we can confidently look
forward to cumulative beneficial
forces represented by increased VOL
ume Of business, more general profit,
greater employment, a diminution
Of relief expenditures. larger gov
ernmental receipts and repayments
and greater human happiness.
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