Evening star., 1938-01-03

increased-other happy results will
flow from such increase.
100 Billion U. S. Income
Administration Objective.
We have raised the Nations in
come from $4,000, 100000 in the
year 1882 to about s68,0O0,OOO 900
in the year 1887. Our goal, our
objective is to raise it to ninety or
one hundred billion dollars.
We have heard much about a
balanced budget, and it is interest,"
Ing to note that many of those who
have pleaded for a balanced budget
as the sole need now come to me
to plead for additional Govern
ment expenditures at the expense
OF unbalancing the budget. AS the
Congress is fully aware, the annual
deficit, large for several years, has
been declining the last fiscal year
and this. The proposed budget for
1889. which I shall shortly send to
the Congress, will exhibit further
decrease in the deficit. though not
a balance between income and
outgo.
To many who have pleaded with
me for an immediate balancing Of
the budget, by a sharp curtail-
ment or even elimination of Gov
4 ernment functions, l have asked
the question-"What present ex-
penditures would you reduce or
ellminate?" And the invariable
answer has been that is not my
business-I know nothing of the
details, but I am sure that it could
be done" That is not what you
or would call helpful citizenship.
On only one point do most Of
them have a suggestion. They
= think that relief for the unem-
ployed by the giving of work is
Wasteful, and when I pin them
down I discover that at heart they
are actually in favor of substi-
tuting dole in place of useful
work. To that neither I nor, am
confident. the Senators and Repre-
sentatives in the Congress will ever
consent.
Lays Down Certain Conditions
In Regard TO Balanced Budget.
I am as anxious as any banker
or lndustrialist or business man or
investor or economist that the
budget Of the United States Gov
ernment be brought into balance as
quickly~as possible. But I lay
down certain conditions which seem
reasonable and which I believe all
should accept.
The first condition is that We
continue the policy Of not permit
ting any needy American who can
and is willing to work to starve
because the Federal Government
does not provide the work.
The second is that the Congress
and the Executive join hands in
eliminating or curtailing any Fed
eral activity which can be elimi-
mated or curtailed or even post
poned without harming necessary
Government functions or the safety
of the Nation from a national point
Of view. The third is to raise the
purchasing power of the Nation to
the point that the taxes on this
purchasing poWer-or, in other
words, on the Nations income
will be sufficient to meet the neces-
sary expenditures of the national
Government.
have hitherto stated that, in
my judgment, the expenditures of
the national Government cannot
be cut much below seven billion
dollars a year without destroying
essential functions or letting people
Starve. That sum can be raised and
will be cheerfully provided by the
American people, if we can increase
the Nations income to a point we'll
beyond the present level.
Efforts to Keep Expenses
From Rising Held Vital.
This does not mean that as the
Nations income goes up the Fed
eral expenditures should rise in
proportion. On the contrary, the
Congress and the Executive should
use every effort to hold the normal
Federal expenditures to approxi-
mately the present level, thus max
ing it possible, with an increase in
the Nations income and the re-
sulting increase in tax receipts,
not only to balance future budgets
but to reduce the debt.
In line with this policy fall my
former recommendations for the
reorganization and improvement
OF the administrative structure OF
the Government, both for i'm
mediate executive needs and for the
planning of future national needs.
renew those recommendations.
In relation to tax changes, three
things should be kept in mind.
First, the total sum to be derived
by the Federal Treasury must not
be decreased as result of any
changes in schedules. Second,
abuses by individuals or corpora
tions designed to escape tax-pay-
ing by using various methods of
doing business, corporate and
otherwise which we have
sought, with great success, to end
must not be restored. Third, we
should rightly change certain pro-
visions where they are proven to