Evening star., 1935-10-01
Text of Kings Address
Senator, Speaking on Forum, Calls for Balancing
of Budget and Provision for Annual Re-
duction of Deb..
ducfion of Deb..
1HE text Of Senator Kings ad-
dress last night on the Ma
tional Radio Forum. arranged

lows:
For a number of years the financial
condition in the United States has
been unsatisfactory. The Federal Gov
ernment, the States and their political
subdivisions, corporations and indi-
viduals incurred obligations which
they could not and did not meet. Bor-
rowings were resorted to, bonds and
notes were issued, and mortgages to
secure payment of the same were
executed. Defaults occurred in the
payment of obligations, and thousands
Of individuals and corporations were
forced into courts of bankruptcy. Enor-
NOUS deficits were created by the Fed
eral Government as well as by States
and their political subdivisions, and
the tax burden was increased in order
to maintain their honor and credit.
Prudent individuals as well as govern
ments prepare their budgets and plan
to meet growing obligations and avoid
deficits.
For a number of years students of
government have devoted much study
to national, State and municipal bud
gets and have endeavored to arouse
public officials as well as the people
to the imperative necessity OF economy
in public affairs and of the adoption
balanced budgets.
In 1921 Congress enacted law
providing for budgetary system and
requiring the executive department to
prepare and submit balanced state
ments dealing with the receipts and
expenditures of the Government. The
enormous Indebtedness incurred by
the Federal Government and the
States and their political subdivisions,
aggregating approximately S50,000,-
100000, reveals that ample provisions
have not been made to meet the appro-
priations made. During the World
War the Federal Government incurred
heavy obligations. but after the war
Sesolutely directed its efforts to reduce
the public debt. During the past few
years the public debt has been in
creased until today It approximates
$4,000, 100000. The credit Of gov
ernments must be maintained: and
no government may indefinitely ex-
pend in excess of its income without
ampairing its credit.
Time to Take Stock.
Unfortunately, there are those who
exhibit no concern in fiscal policies
and in the adoption Of measures which
will maintain the credit of the Govern
ment. The persistent demands are
made for larger appropriations and
the entrance of the Government into
fields of activity which belong exclu-
sively, under our theory of govern
ment, to individuals and private en-
deavor 1t is time that we should
take stock of the financial condition
of the Government and determine to
support only sound fiscal policies and
enforce rigid economy in all branches
OF the Government.
The official estimate of revenues
submitted to Congress last January for
the fiscal year ending June 30, 1886,
was S4,000000 1000. During the past ses-
hion of Congress revenue bill was en-
acted which it is expected will increase
the revenues by one-fourth of a bill
lion dollars in a full year of operation.
Ave and practically no revenue will be
obtained therefrom during the fiscal
year 1896. In any event this small ad-
ditional revenue is quite unimportant
Ia view of the stupendous appropria-
tdons to meet governmental expendi-
tures. The expenditures for the fiscal
year 1886 In January last were esti-
mated to be eight and one-half billion
dollars in round figures. However, ap-
propriations made during the last ses-
sion of Congress. including unexpend-
ed balances of previous appropriations
made available for 1886, total the enor-
NOUS sum of S10,073 100000. If this
huge sum is expended in the fiscal year
1896, it means that the Government
will spend So so for every dollar it re-
ceives in income. Even if only eight
billion Of the 10 billion appropriated
are expended, the Government will
have expended twice as much as its in
come Their deficits would soon force
them into bankruptcy unless they had
large reserves. How long can the
Government continue a policy OF
spending double what it receives?
Cites 5-Year Record.
call attention to the fact that in
1881 the expenditures of the Govern
ment were one and one-fourth times
larger than its income. In 1882 1t
expended two and one-half times its
tncome. In 1888 the Government ex-
penditures we're two and one-third
times its income. In 1884 its expendi-
tures were two and one-fourth times
as large as its income In 1885 its ex-
penditures were nearly twice as large
as it income. In other words, for
the past five years, the Government
has been eXpending on an average
twice the amount of its revenues, and
for 1886 it is proposed that we expend
from two to two and one-half times as
much as the total Federal income, and
though taxes have been increased
and the income of the Government
because of improved economic con-
fltl0nS is greater. the Federal Gov
ernment will have a deficit of from
four and one-half to six billions of
dollars in 1886.
To aid in viSualizing what these
enormous expenses are, I invite atten-
ton to the fact that the total gross
expenditures of the Federal Govern
ment during the five years of the
Civil War-that Is, from 1861 to 1865
were less than $500, 100000. An ex-
animation of the state of the public
debt, must convince all thoughtful
persons of the imperative necessity
for budget balancing. The public debt
on September "a of this year approxi-
mated s3o,0o0,O0O, 900. which amount
exceeds by $3,000 900 900 the war; time
peak of 1919 and represents an in
crease in public Indebtedness since
1880 of more than s13,000,000 900.
History furnishes indisputable proof
OF the difficulty encountered by gov
ernments in reducing their financial
obligations. Adam Smith, in speaking
of public debts, stated:
when national debts have once