Evening star., 1939-06-01
Points Out Fallacies in
Presidents Speech.

To the Editor OF The Star:
Many Of the fallacies in the Presi-
dents address to the American Retail
Federation on May % have been very
effectively pointed out in editorials and
by eminent columnists, but this letter
Is an effort to contribute some new
slants, or fresh ideas, to the discussion,
and would seem to be justified by the
tremendous importance of the subject
One OF the most important state
ments in the address was this: You
cannot expect this administration to
alter the principles and objectives for
which we have struggled for more than
six years" This means, of course, that
the President stands pat. Everybody
knows the story of the failure, after
six years of experimenting, with heavy
deficits each year, to fulfill the promises
OF success made at the beginning, yet
the President stands adamant against
any material change. Is this any
ground for business confidence?
1t is only recently, after what has been
indicated in the press as great reluc-
tance on the Presidents part, that he
has been willing to accept shifting of
some of the most-complained-o taxes,
provided. however, there shall be no
reduction in the total revenue collected.
Frequent complaint has been made
that business would not cooperate with
the administration, but the New Deals
idea OF cooperation has been an un-
qualified acceptance of the Presidents
philosophy of government. This is
clearly established by the Presidents
resolute stand against any change In
his philosophy.
Let us consider the sole hope the
President holds forth of ever balancing
the budget, which balancing his Secre-
tary of the Treasury said in the state
ment Of May q is clearly a funda-
mental objective Of sound finance" The
President said in his address, "At 80
billions-and this is an 8O-billion- dollar
country-the income from present taxes
will be sufficient to meet expenditures
on the present scale. =" According
to the administrations Statistical alb
stract of the United States, 1885," the
national income has been nowhere
near that figure since 1929, when it
went to 81,128 billion dollars. Accord
ing to the Presidents address, To-day
1t is running at the rate of better than
IS billions"
Calling at the Government offices
where the annual national income fig
ures are made up was told, Informally,
thot tho roook roochoI in,
that the nearest approaches thereto
were in the few fears next preceding
1929. This was the celebrated Golden
Age of Mr.. Coolidge" So, only once
in the history of this country, and that
In an age belittled by the New Deal,
has the national income reached the
figure which the President says, in
effect, we must reach before the budget
can be balanced. Can business find
any confidence in this prospect?
The President concluded his state
ment about the 80-billion national in
come by adding that actually when
that time comes our expenditures will
be less because our relief bill will be
lower" If the administration con-
tinues, as it undoubtedly will, to borrow
and use for current expenses such trust
funds as come from pay roll taxes and
deductions, merely putting in their place
promises to pay some time in the future,
the payment of such promises when it
becomes absolutely necessary to make
such payments would constitute great
strain upon even an 80-billion national
income. Surely this prospect cannot
inspire business with confidence.
Referring evidently to what he called
"the school of the gamblers" the Presi-
dent said, later in his address, II have
talked with you at some length about
the radicals who have the hunch that