Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1935-12-12
NATIONAL PRESS BLDG.

Ahead Seventy-fourth con-
gress, some OF the
problems which President Roosevelt
must face have begun to take recogniz-
able shape. There are any number OF
them, some great, some small, but that
one which stands out at this writing
involves the alignment shown between
President Roosevelt and business in
terests.
1t is a very interesting situation.
Some weeks ago, the President prom
ised business breathing SPELL" No
one knew at that time how long this
breathing spell" was to last nor did
anyone know exactly what 1t meant
beyond the Presidents verbal state.
ment that his New Deal program was
virtually completed insofar as legisla-
ton was concerned. Through COM
bination Of circumstances, the Presi-
dents promise of breathing spell"
for business has not only failed to
placate business but at the same time
of business to go to bat with the
New Deal. All Of the information l
have been able to gather indicates
q distinct stiffening of resistance to
the New Deal by all types of business
interests, either corporate of indi-
vidual.
There can be no doubt that large
segment of business Is emphatic in its
demand that New Deal spending be
reduced. That section of the country's
economic life is determined to force
New Deal plans for spending back
within the boundaries of what bust
ness interests hold to be reasonable.
Having that determination, opponents
Of New Deal spending have at once
something into which they can sink
their teeth, namely, the annual gov
eminent budget. In the nature of
things, 1t and the Presidents annual
message on the state of the Union go
to congress in its first week of life.
That means the country will hear at
the very outset of the session some
thing of Mr.. Roosevelt's plans for fur
Their cash outlays.
The budget cannot be balanced in
the next year. Consequently, the gov
eminent debt, now above $30,OOO,OO0,-
600, will be further increased. 1t means,
moreover, that before long there will
have to be additional taxes. These
Increases in the tax levies probably
will not come before the forthcoming
session of congress but they cannot be
much longer delayed because retire
ment of the gigantic debt is pressing
even now.
The business viewpoint, of course,
naturally is concerned most of all
with potential tax increases. Business
realizes that once the relief expendi-
lures are cut down, common sense will
demand revision of the tax structure
in order that the vast amount Of gov.
eminent bonds, notes and bills out
standing shall be liquidated in an or
derby basis So, in concentrating at
this time on government spending, op-
ponents of the New Deal actually are
looking into the future and planning
as far as they can to hold down the
tax load they know they must carry
sooner or later. 1t is quite obvious
that there will be no change in the
way of increased levies of taxes at the
1895 session of congress because, after
all, political parties do mot raise tax
rates In an election year. But this
government is due to continue as a
government for this nation and the
retirement of the $3O,OOO,OO0,00O debt
cannot be lodged.
From the White House and from
Warm Springs, Ca. where the President
lately took his annual
Turns to Thanksgiving rest,
Economy there came announce
ments, both direct and
inspired, that the President was turn
ing to economy in the government out
lay. The information, of an official
character, indicated desire on the
part of the President to cut the ordi-
nary expenditures of the government
by $5OO,000000 for the fiscal year be-
ginning July l, 1885, The budget that
will go to congress in the first week
of January will cover the so-called
ordinary expenses. On the surface It
appears that this budget will aggre-
gate about $4,0O0,000,O O0-just about
the same as the budget for ordinary
expenses of the government in the
current 12-month period. But there
has been no indication yet what the
total of the extraordinary expenditures
of the government will be.
We have, as you know, really two
budgets. The ordinary budget is like
the budget that has been used since
the passage Of the budget and &C.
counting act in 1922. 1t covers the
running expenses OF all Of the estab-
lished governmental agencies, provides
for all field work and carries approprl-
ations for payment Of interest on the
government debt and bite or two for
retirement Of outstanding bonds. The
extraordinary expenditures under Pres
ldent Roosevelt's practices have been
handled separately. being passed by
congress In the form OF a resolution
for recovery and relief or some other
such language making a lump appro-