Evening star., 1934-11-19
Budgets and Bonuses.

Budgets and Bonuses.
The National Economy League has
produced plan for a balanced
budget, two-year- old will -the-wisp
Principal ingredients of the plan are
discrimination of huge Government
appropriations for public works and
other emergency measures and an in
crease in taxes. Judging from the
outcome of the recent elections, the
country is not in frame of mind
to look kindly on any curtailment Of
expenditures. The people, moreover,
are chronically opposed to taxes-un-
less they happen to fall on some one
else. The National Economy Leagues
proposal for a balanced budget, no
matter how desirable such a budget
may be, is in for hard shedding.
Within the next six weeks 1t be-
comes the duty Of the President to
send to Congress his recommended
tions for the Government budget for
the next fiscal year. In his last mes
sage on the budget the President spoke
of the necessity of bringing about, at
the earliest possible time, balance
between governmental expenditures
and receipts. He suggested that every
effort should be made to obtain such
a balance in 1885. His proposals will
be awaited with the keenest interest
Not only will those people who are still
interested in the financial stability of
the Government scan the budget mes
sage, but also those people who are
engaged in carrying on the huge gov
ernmental projects which have been
undertaken in the name Of recovery.
The Economy League does not believe
that the Government can spend its
way out of debt There are, however,
q good many who take different view
of the situation; who contend that If
the Government will pour out enough
money, it will so stimulate business
that ample returns in taxes will fol-
low. The danger lies in the chance
that perhaps all this stimulation will
not bring results.
Among those who believe in Gov
ernment spending in order to bring
prosperity are the advocates Of imme-
diate payment of the soldiers bonus.
They add also that this is a debt
which should be paid the veterans and
that the two billions put in circula-
ton should be a great aid in stimu-
lating business.
The payment of the soldiers bonus
now does not commend itself to those
who desire a balanced budget. 1t
does not commend itself to those who
believe that continued governmental
expenditures on the present big scale
will eventually result in financial col
lapse, or in grinding taxes or in in
fation and reputation. No one
doubts, however, that battle will be
waged in the coming Congress to
make these cash payments to the
veterans. The President has already
expressed his opposition to this added
burden Of expenditure at this time.
The National Economy League is
not the only group in the country
bestirring itself in the interest of
greater economy in Government and
the adoption of recovery plans along
lines that differ from those advocated
by some of the New Dealers. The
National Association of Manufacturers
Is to hold congress of industry" in
New York early in December to draft
q recovery program. The United
States Chamber of Commerce has an
nounced campaign to prevent the
proposed 30-hour work week being
written into Federal law.
If the coming session of Congress
had nothing to consider beyond the
balancing of the budget-which prob
ably would have to include new taxa
tion-beyond the payment of the
soldiers bonus and the 30-hour work
week, the legislators would have
plenty to occupy them. Democratic
leaders in Congress so far have SHE'D
away from the suggestion Of in
creased taxes. New taxes and heavier
burdens do not appeal to them as the
kind of answer they wish to make to
the people who voted them so strong
ly into continued control of the Gov
ernment on November 6. The halls
of Congress promise to be a major
battle ground for six months or more
after January 3, with the various
groups interested in bonus, 30-hour
work week ana palanceo budget tre-
mendousIy acrlve.