The Waterbury Democrat., 1938-01-03
President Speaks To
 Nation And World
Continued from Page D

1uAb VI AA1y CIlhIlBcS HI SCIlcQuleS. Second, abuses by individuals or cor porations designed to escape tax paying by using various methods of doing business, corporate and otherwise-abuSes 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 work definite hardship, especially on the small business men of the na- tion.
 But speculative income should not be favored over earned income" '"
 Business Men Good Citizens
 Speaking of his attitude toward the nations business as a whole, MT. Roosevelt declared:
 "The overwhelming majority of business men and bankers intend to be good citizens. Only small min- ority have displayed poor citizen ship by engaging in practices which are dishonest or definitely harmful to society. This statement is straightforward and true.
 "No person in any responsible place in the government of the Uni ted States has ever taken any posi- tion contrary to it."
 MT. Roosevelt declared that when attention was called to specific misuses of capital" there has been deliberate purpose on the part of the condemned minority to distort the criticism into an attack on all capital.
 That is wilful deception but it does not long deceive"
 Practices Criticized
 Practices which the president de- clared criticism was intended to be directed at specifically were listed as follows:
 Tax avoidance, through corporate or other methods.
 Excessive capitalization, invest ment write-ups and stock manipu- lation.
 Price-rigging and collusiye bid ding ''in defiance of the spirit of the antitrust laws
 High = pressure SalesmanShip which creates cycles of overproduc- tion within given industries and consequent recesSions in production until such time as the surplus is consumed"
 Use of patent laws by large corp orations to withhold from the pub lie scientific advances.
 Unfair competitive practices which react against small producers.
 Intimidation of state or local gov ernments to prevent enactment of laws to aid labor.
 Shifting of production from one region to another to lower labor costs.
 Business Not Wholly Guilty
 'SThe enumeration of these abuses" said MT. Roosevelt, "does not mean that business as whole is guilty of them.
 The president also called attention to factor cited in recent addresses by Secretary of Interior Harold L. Ickes and Assistant Attorney Gen. eral Robert Jackson.
 "Another group Of problems af- fecting business" he said, which cannot be termed specific abuses, gives us food for grave thought about the future. Generically, such ppoblems arise out of the concen- tration of economic control to the detriment of the body politic-con- trol of other peoples money other peoples labor other peoples lives.
 "The ownership of vast properties or the organization of thousands of workers creates heavy obligation of public service. The power should not be sought or sanctioned unless the responsibility is accepted as we'll"
 Cooperate With Business
 Government, said MT. Roosevelt, ''can be expected to cooperate in every way with the business of the of buysineSs abandon practices which nation provided the component parts do not belong to this day and age, and adopt price and production policies appropriate to the times.
 ''In regard to the relationship of government to certain processes of business, to which I have referred, it seems clear to me that existing laws require reconstruction. I eX- pect, therefore, to address the con- greSs in a special message on this subject and I hope to have the help of business in the efforts of gov er1lment to help business"
 No Balanced Budget
 re president f1atly abandoned
 s for balanced budget for the
 fiscal year, beginning July 1.
 he proposed budget of 1939," he
 which I shall shortly send to congress will exhibit a further { ease in the deficit, though not nee between income and outgo."
 am as anxious as any banker o ndustrialist or business man or W Stor or economist that the bud
 of the United States government 5 brought into balance as quickly # possible" he said.
 Conditions to Be Fulfilled However, he laid down several ditions which must be fulfilled in achieving any balance.
 These were:
 Continuance of the policy that no needy American willing to work be permitted to Starve for lack of federally- financed work.
 
 Elimination, postponement or curtailment of inessential federal functions.
 Raising the national purchasing power to the point that taxes on the nations income will be sufficient to -ameet the federal expenditures.
 Sever Billions A Year
 tT have hitherto stated that, in my judgment, the expenditures of the national government cannot be cut much below seven billion dollars 6 year without destroying essential functions or letting people starve,' MT. Roosevelt said That sum can be raised and will be cheerfully pro- viied by the American people, if we can increase the nations income to spoint well beyond the present