Evening star., 1938-04-10

stead, it has increased them year by
year. We are spending now about
$4,000 100000 AS things look now, We
will be spending or 10 billions next
year.
Il shall make a determined effort
to halt such spending program if
it is advanced by the administration "
Senator Bailey is just as outspoken
as Senator Byrd against a new and
great spending program
1T is a quack remedy" said the
North Carolinian, Just about as good
cure for depression as shin plaster
for cancer"
Davis Leads Criticism.
Republican criticism of the spending
program was led yesterday by Senator
Davis, who told the Senate that both
Government spending and forced pri-
vate spending had failed to put busi-
ness on its feet. He warned that the
United States was moving rapidly
toward the Fascist method of attack
on unemployment.
Twenty billions have been spent"
he said, but the number of unem-
ployed is estimated to be as great as
when the spending program was first
begun"
Senator Davies estimated that sl0,-
000000.00o year would be needed
to give relief to all unemployed in
stead of select few"
The only hope of supporting in
creased appropriations for social pur-
poses is an increase of business en-
terprise and productivity which will
produce sufficient income to pay the
bill he said. The present program
is one which discriminates unfairly
among the unemployed and offers no
permanent solution to the unemploy-
ment problems"
Hits New Expenditures.
Senator Bailey made it clear he was
not opposed to such plans as those
contained in the recently passed
Housing Act and the bill authorizing
Chairman Jesse Jones of the R. F. c.
to make loans to business He was
hitting at new expenditures Of large
sums by the Government for pump
printing
He said he feared that once the
people understood that the President
was going to begin all over his efforts
to spend his way back to prosperity
they would be both discouraged and
alarmed. Senator Bailey continued
Let me say the time has come
when every patriotic American citi-
zen must understand that the Gov
eminent is not able to continue to
appropriate money according to the
universal demands being received.
1T is nine years now since the
Government received within a billion
dollars in any year as much as it
expended and the total deficit is
twenty billion dollars The deficit for
this year will be over billion dollars,
and it appears that the deficit for the
next fiscal year will be over two
billions.
This means that the Government
is running on debt and debt by the
billions. 1t also means very heavy
taxation, and if taxation fails, it
means imitation and reputation. I
have at all times believed that in
f1ation would bring on-such a collapse
as would be too severe for the people
to endure and that it might have the
same consequence here that it had in
other nations
"As I see it, it is now impossible
for the Government to balance its
budget. I put the emphasis on the
word impossible. We have lifted the
tax rates on incomes as high as We
think we can hope to go. To make
them higher would be to get less
money. We are about to reduce ex-
emptions and impose the tax on small
incomes. This would not bring us
over two or three hundred million
dollars year. There are those who
speak of a general sales tax, but a
general sales tax at high rate will
not bring us over five hundred mil
lion dollars year. Just assume that
We might add by such extreme meas
ures eight hundred million dollars
to the Federal revenue year. We
would still be running short Of bal
anced budget by over billion dollars
a year in 1924"