Evening star., 1935-05-07
For a Balanced Budget.

When it comes to balancing the
budget the Congress and the Execu-
tive too often find that the spirit is
willing but the flesh Is weak. A
balanced budget makes for strong
credit on the part of Government or
private business. 1t makes for conf
dence on the part of the people. 1t Is
desirable in many other respects, since
it does not pile up huge debts to be
liquidated in the future. 1t may make
life more simple and not so crowded.
There may not be the peaks of
extravaganza, but neither will there
be the depths Of depression and de-
spair.
Senator Tydings of Maryland has
warned his Democratic colleagues in
the Upper House and in the ad-
ministration that the huge spending
orgy under the New Deal, with no
provision made to raise the money
required to meet these expenditures,
means ruin. His voice demanding
balanced budget has been needed no
more than was that of the former
director of the budget, Lewis w.
Douglas, who took his way out of the
administration picture last Summer,
unable longer to endure what was be-
ing done with Government finances.
The Maryland Senator yesterday offer
ed in the Senate a joint resolution in
tended to make automatic a balanced
Federal budget. 1t provides that the
expenditures of the Government
authorized by Congress shall not ex-
ceed in any one year the estimated
revenues.
When the President sends to Con-
gress at the beginning of each session
the budget for the next fiscal year
he includes estimates of revenues as
well as his proposals for expenditures.
The budget message which President
Roosevelt sent to Congress last Janu-
ary, however, indicated that the pro-
posed governmental expenditures
would far exceed the estimated reve-
nues. Indeed. the President told Con-
gress that the expenditures would run
to s8,52O,413,609. while the estimates
of revenues were given as 1891 .904,-
639. The excess of expenditures over
receipts would be. therefore, s452S,-
508.970. The budget this year in
cluded the governmental expendi-
lures in single sum instead of seek
ing to separate the emergency" ex-
penditures from the so-called regular
Government expenditures,
Under the Tydings plan, II the Fed
eral Government proposed to expend
such a sum of money, it would also
have to provide the revenues. through
either taxation or borrowing. If the
money is to be borrowed, then the
act appropriating the money in ex-
cess of the expected revenues would
also carry new taxes sufficient to
liquidate the loan in a period not in
excess of fifteen years In time Of
war, when it is necessary to meet great
emergencies, the proposed Tydings law
would be imperative, and for one year
after the close of war.
Deficits lead to more deficits and
unbalanced budgets to more unbal-
anced budgets. In his budget message
TO Congress in January. 1884. the Pres
ident proposed expenditures greatly
in excess of estimated revenues for
the present fiscal year. He said in
that message: "The Government dur
ing the balance of this calendar year
should plan to bring its 1886 expen-
including recovery and relief,
within the revenues expected in the
fiscal year 1886" What happened?
When the President submitted his
budget for the fiscal year 1896 he pro-
posed expenditures more than 4,5O0,-
600 900 in excess of the estimated rev.
enues. He made no proposal to raise
The money by further taxation, nor
to care for these huge deficits by
levying taxes. Nor does there seem
prospect of new taxes which
could offset this damage done to the
balance of the governmental budget.
Taxes continue to be unpopular.