Evening star., 1937-05-04
BYRNES ASKS CUT
IN j. s. EXPENSES
Senator Urges Nation to
"Put House in Order" by
10 Per Cent Slash.

Urging I'll AIlleIlCdnS 10 leIlQ IIe1r
support to the movement to put the
Governments "house" in order, Sem
ator James F. Byrnes, Democrat, OF
South Carolina last night reiterated
his intention Of fighting in Congress
for 10 per cent reduction in de-
partmental appropriations to balance
the budget
The Senator spoke during the Ma
tional Radio Forum, heard over
coast-to-coast network of the Ma
tional Broadcasting Co. through WRC.
The Forum is arranged by The Eve
ming Star.
With the increased wealth Of the
Nation and the increased tax-paying
capacity of the people, the credit of
the Government is beyond question.
the speaker declared, but the Gov
ernment's credit must be maintained.
Urges Balanced Budget.
'"The only certain way to main
tain it," he continued, lis to balance
the budget. 1t can be balanced in
one of two ways-by increasing taxes
or reducing expenditures"
Pointing out that taxes already
have been increased on larger incomes
and estates, Senator Byrnes reminded
that it has been proposed to raise
additional revenue by either lowering
the income tax exemptions or impos-
Ing sales tax.
If I had to choose, I would lower
the exemption" he said. But I am
opposed to both proposals The budget
should be balanced by reducing ex-
penditures, not by levying more
taxes"
Senator Byrnes' speech in full fol-
lows:
In the life of the average citizen
there often arises an emergency due
TO illness or other unavoidable mis-
fortune when it Is not only imprac-
ticable but unwise to attempt to bal
ance the family budget The emer-
gency must be met Extraordinary
expenses must be incurred. If nee
essary money must be borrowed. When
the emergency has passed the prudent
individual realizes that he must not
only reduce his expenditure within
his income, but from that income he
must save some amount to pay upon
the debts incurred during the emer-
gency.
Necessities OF Emergency.
This is true OF a government. The
necessities of an emergency must be
met regardless of whether the budget
Is balanced. -Four years ago an emer-
gency confronted us and it was cou-
rageously and humanely met by the
Government Of the United States. The
homes and the farms of the people
we're saved and the needy and the
unemployed were assisted, even though
In order to do it the Government had
to borrow billions of dollars.
AS a member of the United States
Senate I voted for every recovery
measure. AS a member of the Ap-
propriations Committee actively sup
ported every relief appropriation. II
today the same conditions existed I
would vote for the same appropria-
tons. But the same conditions do
not exist. The recovery program of
this administration has accomplished
its purpose. The emergency has
passed. Now it Is easy to forget those
Things we DO not care to remember.
But let me remind you that in 1892
and 1888 1t was our opinion that we
should not seek return of the boom
conditions Of 1929 because we feared
such conditions would result in a re-
currence Of the unfortunate and dis
astrous conditions that followed 1929
Today we approach 1929 conditions.
The Federal Reserve Board has an
nounced that industrial production in
March reached 119 per cent as COM
pared with an average of 119 per
cent in March, 1929. 1t is unneces-
sary to read the charts of the econo-
mists. BY every yardstick we have
heretofore useC to measure prosperity,
the people of the Nation are pros
porous.
1t is true that we have the problem
Of the unemployed. We have always
had that problem. Today because of
chronological improvements, the great
increase in the number of women who
have gone into business and other
factors, there is an increase in the
army Of unemployed. AS to the size
Of that army, no two men agree. But
regardless of the number, we know
that business conditions are today as
good as We could reasonably expect
to maintain over any period of years.
Therefore, I assert the emergency has
passed, and 1t is time for us to put our
house in order.
Debts of Emergency Period.
First of all we must consider the
debts we have incurred during the
emergency. The Indebtedness of your
Government as of April %, 1897, was
S34, 4,94l, ,507 8979l. The interest you
will have to pay next year on this in
debtedness is s860,O0O,o0O. Now what
chance is there Of reducing this debt?
On April 20, 1887, the President
submitted to the Congress a revised
estimate of the Governments finan-
cial needs for the next fiscal year
beginning July l. He advised the
Congress that the amount of revenue
the Government would receive would
be S604,000,0 900, less than was antici-
pated last January and, if the Gov
ernment spent the amount OF money
heretofore requested, and, in addi-
ton the sum of s1,500,OOO, 900 he es-
timated as necessary for work relief,
at the end OF the year-July l, 1898
our expenditures would exceed our in
come by s41800O,0OO.
So 1t appears that after recovery
has taken place, instead of following
the policy of prudent individual
paying our way and saving an amount
to reduce the debt incurred during
the emergency-we are going to add
70 the debt which is now approxi-
mately s35,OOo,OOO,O II this year
we cannot meet our current expenses
and pay something upon the indebt-
edness, what will we do should we
have recession of business? Or,
without a business recession, what
chance is there Of Congress reducing