Evening star., 1936-01-06

priations for the purposes specifically
detailed in the tables which follow.
Part |.
No mortal is permitted unfailingly
to predict the future. This Is particu-
larly true of estimates which relate to
the money values of property and
services in a world of nations torn by
dissension by violent price fiuctu-
ations, and by forebodings OF the
future.
1t Is, therefore, a cause for con-
graduation within our own Nation to
realize that a consistent, broad ma
tional policy, adopted nearly three
years ago by the Congress and the
has thus far moved steadily.
and successfully toward its
objective.
In March, 1893, in spite of substan-
tial increases in tax rates during the
administration. Federal tax
that even normal expenses of Govern
ment could not be carried on without
creating a mounting deficit. In addi-
tion to normal expenses the problem
of millions of starving unemployed
called for a relief program which OBJ
viously would greatly increase that
deficit.
Sought to Stem Drop
BY Action on Many Fronts.
The national policy which we then
adopted sought to stop the downward
economic spiral by taking simultane-
Gus action along dozen fronts. The
chief objectives were: To make bank
deposits secure, to save farms and
homes from foreclosure. to start public
works on a large scale, to encourage
home building, to increase farm crop
values, to give useful work instead of
dole to the needy unemployed, to re-
duce all interest rates, to increase for
eign trade in both exports and imports,
to extend Government credit to rail-
roads and other privately owned ac-
tivities, to reduce unsound and gener-
ally disastrous speculation. to eliminate
starvation wages. to seek higher level
of values, and then to maintain those
values.
On the part of the Federal Govern
ment the many legislative acts creating
the machinery for recovery were all
predicated on two interdependent be-
liefs. First, the measures would i'm
mediately cause a great increase in
the annual expenditures OF the Gov
ernment-many Of these expenditures,
however, in the form of loans which
would ultimately return to the Treas
ury. Second, as a result of the simul-
taneous attack on the many fronts I
have indicated, the receipts of the
Government would rise definitely and
sharply during the following few years,
while greatly increased expenditure for
the purposes stated. coupled with ris-
ing values and the stopping OF losses
would, over period of years. diminish
the need for work relief and thereby
reduce Federal expenditures. The in
crease in revenues would ultimately
meet and pass the declining cost of
relief.
Policy Is Confirmed
BY Figures Of Treasury.
This policy adopted in the Spring
Of 1888 has been confirmed In actual
practice by the Treasury figures of
1884, of 1895, and by the estimates for
the fiscal years of 1886 and 1887.
There is today no doubt Of the
fundamental soundness of the policy
of 1888. II We proceed along the path
we nave followed md with the results
attained up to the present time We
shall continue our successful progress
during the coming years.
Stated even more conciSely, We can
look forward today to a continued re-
duction of deficits, to increased tax
receipts, and to declining expenditures
for the needy unemployed. Let it be
remembered that the major part Of the
increase in tax receipts anticipated in
1887 over 1886 from comparable
sources is coming from old tax sched-
ules The only changes made last year
in the tax schedule were, first. the
of the tax on checks and,
secondly. slight increase in taxes on
large incomes, on large estates, and on
large corporations and in capital stock
and excess profits taxes. BY the elini-
nation of the tax on checks we lost
$40 ,000, 900 in revenue and the slight
increases on estates and on personal
and corporate incomes will add only
about $222, 900. 900 to Government re-
ceIpts this coming year. I emphasize
that the great bulk of increased Gov
eminent income referred to above re-
suits from increased earning power
and profits throughout the Nation. and
not from the new taxes imposed by
the revenue act Of 1885.
Success Up to Employers;
Finances Best in Seven Years.
Final success viii depend, Of course,
on the strength of the efforts put forth
by the employers of the United States
greatly to increase the number OF per-
sons employed by them. The finances
Of the Government are in better con-
dition than at any time In the past
seven years. say this because start
ing with the Autumn of 1929 tax re-
ceipts began a steady and alarming
decline while, at the same time. Gov
ernment expenditures began a steady
rise; today, tax receipts are continuing
a steady climb which commenced in
the Summer Of 1898. whereas budget
estimates for the next fiscal year will
show a decreased need for appropri-
ations.
Credit at Its Highest;
Figures Prove Policy Succeeding.
The credit of the Government is at
It's highest. The average of the bust
ness men of the Nation stand ready to
do their share. It Is to be hoped tina.
motives and attacks which spring only
from the desire for political or finan-
cRl power on the part Of q few will
not retard the steady progress We are
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