Evening star., 1936-01-19
Former Director

Tne neU FeGeTQt OuGgeL ana LHS
Roosevelt administrators fiscal
policies are discussed here in
critical analysis by the former di-
rector Of the budget.
BY LEWIS w. DOUGLAS.
Former Director Of the Budget.
The budget for 1887 is confused and
open on both ends.
Fully to understand any event or act
it is necessary that there be an UNDER
standing of the environment in which
that event or act occurs. So it Is with
the annual Federal budget just sub
mitted to Congress by the Executive,
Consequently, before attempting an
analysis Of the budget, it is appropriate
to recall the historical setting in which
it occurs.
No attempt will be made to evaluate
either the setting or the consequences
of the performance. This Is only a
recitation OF facts as nearly as they
car. be determined.
THE SETTING
In July, 1882, the Democratic party
in convention adopted a platform-"a
covenant with the people to be faith
fully kept by the party when entrusted
with power"-which contained the fol-
lowing explicit commitment:
I'VE favor maintenance OF the ma
tional credit by Federal budget an
nually balanced on the basis Of accu-
rate executive estimates within rev.
enues"
The presidential candidate of the
Democratic party, in his speech to the
convention, accepted the pledges Of
the party platform in the following
unqualified language: THAT admir-
able document, the platform which you
have adopted. is clear. I accept it
100 per cent"
Balance Urged in 1882.
On October 10, 1882. in Pittsburgh,
the presidential candidate of the Dem
ocratic party said:
Would it not be infinitely better to
clear this whole subject of obscurity-
to present the facts squarely to the
Congress and the people of the United
States and secure the one sound foun-
dation of permanent economic recov-
ery-a complete and honest balance Of
the Federal budget?
I'm all earnestness I leave the an
swer to your common sense and iudg-
ment >.
Il regard reduction in Federal
spending as one Of the most important
issues OF this campaign. In my
opinion it is the most direct and ef-
fective contribution that Government
can make to business"
Made Reservation.
To be sure, in the same speech he
said:
''At the same time, If starvation
and dire need on the part Of any Of
our citizens make necessary the ap-
preparation OF additional funds which
would keep the budget out of balance,
I shall not hesitate to tell the Ameri-
can people the full truth and recon-
mend to them the expenditure of the
additional amount"
In 1882, when the Democratic plat
form was adopted, there were some
twelve million unemployed and there
was widespread human distress and
suffering.
On March 10, 1888. after the Demo-
cratic nominee had become the occu-
pant Of the White House, the economy
act. accompanied by a message, was
sent to the Congress. In that official
document he stated: ~
TOO often in recent history liberal
governments have been wrecked on
rocks Of loose fiscal policy. We must
avoid this danger. We must
move with a direct and resolute pur-
pose now. The members of the Con-
gress and I are pledged to immediate
economy
Il give you assurance that If this
is done there Is reasonable prospect
that within year the income of the
Government will be sufficient to cover
the expenditures of the Government"
Expenses Higher, However.
But some IS months later. the ex-
penditures had increased ST 1863 400, 600.
as compared with 1882. and the reve-
nue. fell short of covering expenditures
by the sum of $3,989, ,496,035.
On January 3, 1884. the occupant
of the White House submitted to the
Congress his annual budget message
and budget, in which he stated
MY estimates for the coming fiscal
year U935) show an excess OF ex-
penditures over receipts of two billion