Evening star., 1937-01-08
Part l

The programs inaugurated during
the last four years to combat the de-
preston and to initiate many needed
reforms have cost large sums OF
money, but the benefits obtained from
them are far outweighing all their
costs. We shall soon be reaping the
full benefits of those programs and
shall have at the same time balanced
budget that will also include provision
for reduction of the public debt.
The fiscal plans of the Federal
Government for these four years have
been formulated with two objectives
in mind Our first was to restore
successful economic life to the coun-
try. by providing greater employment
and purchasing power for the people.
by stimulating more balanced use Of
our productive capacity, and by in
creasing the national income and dis
tributing it on wider base Of pros
perity. Our second was to gain new
advantages of permanent value for
the American people. Both Of these
objectives can be accomplished under
sound financial policy.
Gains Bring Cuts
In 1898 Expenditures.
Business conditions have shown
each year since 1888 a marked i'm
provement over the preceding year.
Employment in private industry Is in
creasing. Industrial production, fac
tory pay rolls, and farm prices have
steadily risen.
These gains make it possible to re-
duce for the fiscal year 1888 many
expenditures Of the Federal Govern
ment which the general depression
made necessary. Although We must
continue to spend substantial sums to
provide work for those whom industry
has not yet absorbed, the 1888 budget
is in balance; and. except for debt
reduction of S401 SIS 900, it will re-
main in balance even if later on there
are included additional expenditures
OF as much as sl,537, 1923 900 for re-
covery and relief. We expect, more
over. II improvement in economic
conditions continues at the present
rate. to be able to attain in 1889
completely balanced budget, with full
provision for meeting the statutory
requirements for debt reduction.
In carrying out this policy the
American people are obtaining lasting
benefits. Economic protection of the
aged and physically handicapped is
being secured through the operations
Of the social security act. Ability of
the farmer to obtain a more constant
livelihood has been enhanced by the
enactment OF legislation especially
designed for that purpose. The home
owner has been benefited through the
financing of mortgages at reasonable
rates OF interest. Investors in Sc
curities are being given a larger meas
IRE Of protection by the securities
and exchange act. The market for
corporate securities has been restored
and industry has been able to finance
its long-term requirements on a fav-
orable basis. The rights Of labor are
being materially advanced through
operation Of the national labor re-
lations act.
Estimates on Relief
To Come Later.
plan to submit at later date an
estimate Of appropriation for addi-
tional relief for the fiscal year 1898,
which I hope will not exceed the
amount of s1,537 ,l23,000, previously
mentioned. This hope is based on the
assumption that industry will co-ope-
rate in employing men and women
from the relief rolls in larger numbers
than during the past year. Many Of
those IN charge of industrial manage
fnent recognizing their obligati ton to
the Nation, have furnished to the large
measure of employment to the job
less. Today, while it is true that in
some sections Of the country certain
types Of skilled workers are still seek
ing employment, it is nevertheless
a fact that the great majority Of
those now receiving relief belong to
the unskilled group. 1t is my con-
viction that If every employer or
potential employer will undertake
during the next six months to give
employment to persons now receiving |
Government help. the national budget
can thereafter be kept definitely in
balance. Without such cooperation
on the part Of employers, the question
Of a balanced budget for 1898 must Of
necessity remain an open one, for the
very good reason that this Govern
ment does not propose next year any
more than during the past four years,
TO allow American families to starve
To continue the gains We are max
ing and to accomplish in the 1899
budget complete balance between
receipts and expenditures, including
debt reduction, we must now lay the
groundwork Of our future fiscal policy.
Increased Costs Show
Normal U. s. Growth.
While relief expenditures should
decline with greater unemployment,
the normal growth Of the country
naturally reflects itself in increased
costs Of Government Many Of the
old functions and duties of Govern
ment naturally cost more as the in.
dustrial and agricultural activities to
which they are related expand in
volume. The cost of new functions |
and duties can be substantially re.
duced only by curtailing the functions
or the duty. propose shortly to sub
NIT to the Congress a broad plan for
placing the executive branch Of the
Government on a sounder and more
responsible basis of management The
carrying out Of such . plan will un-
doubtedly result in some saving In
expenditures; but 1t must be remem-
bered that what is generally known as
overhead represents only small frac.
ton Of total expenditures in any large
business, Government or private
Expenditures must be planned with
. uew to the national needs; and no
expansion of Government activities
should be authorized unless the nee
essity for such expansion has been
definitely determined and funds are
available to defray the cost. In other