Evening star., 1939-01-17
Byrd Demands Curb
On Federal Spending
To Avert Disaster
Forum Speaker Says
Policy Hos Resulted
In Troeic Failure


Policy Hos Resulted
In Troeie Failure
Senator Harry Flood Byrd, Dem
ocrat, of Virginia spoke on "Gov-
ernment Spending" last night In
the National Radio Forum, arranged
by The Star and broadcast over a
Nationwide network of the Ma
tional Broadcasting Co. The text
of his address follows:
For nearly nine years the Federal
Government has spent more than its
income. We approach the 10th
deficit year with no assurance or
early prospect of balancing of the
Federal budget In fact, in this
current year the Federal expendi-
lures are the highest in peacetime
history. The deficit is second only
to 1896 when the soldiers bonus was
paid. On the basis of the budget
submitted to Congress for the next
fiscal year, the expenditures are
likely to be as large or larger. and
the deficit as great or greater.
Throughout this period of deficit
spending the Presidents budget
states that the Federal Govern
ment alone has spent SO billions of
dollars, over % billions of this ex-
penditure being added to the public
debt. And this does not include any
debts and increased expenditures
of the States and local governments.
How much longer can this con-
tinue without disastrous conse-
quences? Should we begin now a
gradual approach to a balanced
budget by a retrenchment of gov
ernmental waste and extravaganza
or shall we continue in the vain
and discredited effort to purchase
prosperity by spending borrowed
money? The true answer to this
question is vital concern to YOU
a vital concern. to every citizen of
Americans your welfare, your
children's welfare and the future
progress of our country may depend
largely upon the correct answer.
Because of its vital Importance, I
thank the National Radio Forum
sponsored by The Washington
Evening Star, for giving me the
privilege of speaking to this great
radio audience on the subject Of
Government spending.
1t is not those who vote 70 impose
these new burdens of debts and
taxes who must pay for them.
Neither will the new taxes be paid
by the offce-holders here in Wash
ington who spend your money with
such ease and rapidity. You, the
130000,000 of Americans. and your
children. and grandchildren, and
their children, are the ones who
must sooner or later carry the bur-
dens of new taxes to pay the inter-
est on, and some day the principal
of. the debts now being created in
a reckless experiment to create ma
tional prosperity by printing the
pump with borrowed money.
Good Intentions Not Enough.
Let us not deceive ourselves or be
deceived. I do not question the
good intentions of those responsible
for the financial policies of our
Government, but let me add, good
intentions are not quite enough.
Acting upon the advice and recon-
mendation of the Chief Executive,
the Congress in the past six years
has appropriated huge sums for one
emergency after another; always,
however, with the assurance that
such excess expenditures were tenn
porary and for the period of the
emergency only. The facts are, how
ever, that not one single emergency
appropriation has been even re-
duced, much less eliminated.
The expenditures for recovery and
relief in the current year are the
largest in our history We began
the depression with Federal bud
get of three and one-half billions.
1t is now nine and a half billions,
making a steady climb. with the
single exception of a reduction in
the year succeeding the payment
of the soldiers bonus.
The President says that on July
/, 1910, the Federal debt will be
$44.458 100000
When we entered the World War
our national debt was about one
billion, and the interest charge was
only about 20 million a year. The
annual interest charge now is over
q billion-more than the total in
debtedness prior to the war. 1t is
$3O0,O00,000 more than the total
expenses of Government in 1916.
Interest alone now takes 20 cents
out of every dollar of Federal tax
revenue During the depression we
added more to the public debt than
we spent defeating our enemies in
the World War.
Suppose we should become in
volved in another world war costing
as much as the last? Suppose we
should blunder into another depres-
sion costing as much as this one?
Suppose that, by chance or mis-
chance, we should suffer the double
calamity of being obliged to finance
another war and another depression?
We would start, after the budget
just presented is adopted, with S45,-
900 100000 Federal debt, and not
81 900, 100000, as we did in 1918.
Staggering Indebtedness.
Our public debt-national, State
and local-now averages S430 for
every man. woman and child in the
country. For every family of four,
the public debt is more than 81 500.
The present generation has placed
mortgage upon all the people and
upon the property of all the people
in order to prime the pump for the
present generation. We are handing
down to our children staggering
indebtedness which they did not
incur but which they will be required
to pay. Are we to assume that our
children and their children will have
no wars to fight, no depressions to
meet, no emergencies to overcome?
I will not mention tonight the
admonitions so frequently given us
;,, tho poct ky pJ,r loo Iorc Of thu