Evening star., 1935-10-06

II
OAKLAND. Calf, october 5.-Fol-
lowing Is the text of former President
Herbert Hoover's speech here tonight
before Western party delegates:
You represent the young men and
women in American life. Before you
Is the responsibility of determining
the fate of your generation. Three
years ago we were warning America
against the consequences of the adop-
ton of the ideas and the system
which have. since been forced upon
us. You have now had nearly three
years in which these ideas and pol
icies have dominated the Nation.
They are no longer glowing prom
ises of the more abundant life. They
are no longer emotional expressions
of high objectives or good intentions.
They are practices in Government.
You now deal with somber realities.
Now they can be examined and ap-
praised in the cold light Of daily ex-
perience.
And we have need to awake from
the spell of hypnotic slogans. Phrases
can be made to scintillate like the
aurora borealis, but such phrases are
of as much practical utility in gov
ernment of a great people as the
aurora itself. The issue of America
is not bttle of phrases. but battle
between straight and crooked think
ing. We need return from
muddling to sanity and realism
We need to test ideas and ac-
tions with the plain, hard common
sense which the American people
possess more greatly than any other
nation. We must bring that common
sense into use If we are to resume
the march of real progress.
Raps New Deal Spending.
The few minutes of this occasion do
not afford time for examination or
discussion Of the enormous range of
actions and confusionS of public mind
in these last three years. I, there
fore, shall conflne myself on this oc-
casion to one hard practical subject
the fiscal policies of this admins
tration. In plain words, I will dis
.cuss this policy of deliberate spend
ing Of public money.
I am taking up this issue because
in this gigantic spending and this un-
balanced budget is the most subtle
and one of the most powerful dam
gers which has been set in motion by
this administration. If it be con-
tinued, its result to you, the young
men and women of America, is as
ineorable as an avalanche.
We must first examine the record
ss to what is being done and then
diagnose the consequences.
As to the records, if you will exam
Inc the reports of the Bureau Of the
Budget, you will find that the Roose-
welt administration has changed the
form Of publishing governmental ac-
counts. That raises barrier against
easy comparisons with previous ad-
ministrations. Republican adminis-
trations were old fashioned, and SIM
ply put expenses down On one side Of
the ledger and receipts on the other.
They did not try to fool the tax
payer or make the taxpayer feel bet
ter than he really was. Under the
New Deal the expenditures have been
divided into regular" expenditures
and emergency or recovery" ex-
penditures. These are new words for
an old South American and European
device Of dividing the budget into
Ordinary" and "extraord1nary"
budgets.
, Helps Abundant Spending"
! That device is most helpful in
abundant spending. BY liberalism in
what you designate as the emergency"
and regular" expenditures you can
blandly pronounce the ordinary budget
as balanced. Then all your deficit is
emergency" part of the budget, and
having made the deficit a plausible
necessity you justify borrowing, and
make the spending happier for every
body. The theory is that the next
generation should pay for the emer-
gencies of this generation.
The report of the Federal Budget
Bureau shows that large items which
have been an essential part of the
Government expenditures for years
have now been styled emergency"
The vast area of spending through
loans guaranteed by the Government
is not represented in the budget with
any taxpayers liability. Under this
arrangement the losses on that will
come to the next generation. And
there are large items now excluded
from the statements of expenditures
which improve the looks of the ac-
counts. These jugglings will, no doubt,
ease the taxpayers mind, but they will
not relieve his pocket.
However, we can with diligence dig
the facts out from under these methods
and despite all these obstacles can
compute with fair certainty from the
present commitments where the Ma
tion will be in another Is months.
Forecasts s35, ,000, 100000 Debt.
The first conclusion is that all losses
counted in the expenditures are now
running over $4,000 100000 a year.
The annual deficit is running nearly
So, 800, 100000. These deficits are,
OF course, added to the national debt.
The second conclusion is that the
unpaid Government obligations which
will fall upon the taxpayer at the end
OF the Roosevelt administration will
exceed ,000,000,000.
The third conclusion is that this
peace-time debt will, at the end of
1886, exceed our World-War debt by
$l0,000,0 100000, and the cost OF the
peace-time New Deal threatens to ex-
coed that of the Great War.
Incidentally, outside of recoverable
loans, the Roosevelt administration
spending will exceed the Hoover ad-
ministration by from s14, ,oO0, 900 900 to
SIS 5,000, 100000. I always have diff
Guilty trying to comprehend what $14,-
o00, 100000 or even So, 3,500, 900, 900 really
is. But I know that even the mere
$500 100000 would buy me 80 1000, 900
suits of clothes. At least that is about
one suit for every mile between the
earth and the sun.
Discusses Own Deficits.
It is, of course, true that during the