The Waterbury Democrat., 1939-01-04

time."
 With such national income, he said, present tax laws will yielc enough each year to balance eact years expenses"
 To that end, MT. Roosevelt out. lined 8 legislative program, pledged himself to continued big scale spend. ing in rejection of budget-balancinl economies, and placed squarely upor congress responsibility for checking the spending stream and for the consequences he believes would fol- low that action.
 There was cautious endorsement of plans to modify and perfect the New Deal. The president called again for passage of the government reorganization bill which was re- jected by congress last April, for transportation (railroaO legislation for bigger old age pension, for 8 na- tional health program, and for an end of factional labor disputes and employer-employe disputes. Some emergency government tools were roughly shaped, he said, and "still need some machining down."
 New Objective
 His new objective is a national income of $8O,0O0, ,000, ,000 a year, of $10,000, ,000, ,000 to $20, ,000, ,000, ,000 from previous New Deal objectives. But he said the smaller sum would bull wark national economy to provide jobs, to provide ample federal rev. enue without new taxes to balance the budget, and to establish that era of goodwill at home so essential to preservation of democracy against dangers at home.
 The economic sanctions threatened by this message if aggressor states transgress American rights were said by MT. Roosevelt's confidantes to be along the lines of strong eco- homie and financial action against discriminatory states. They would be expected to be directed primarily at Japan and Germany, although the former has most consistently been in conflict with the United States over interference with Amer ican rights.
 Complicated Factors
 Numerous and complicated factors prevail, MT. Roosevelt said, in oh- taining his $80,000, 100000 year in- come objective. He rejected the idea that the United States should be considered 8 mere $60, 1000, ,000, ,000-a- year nation and that government spending should be sharply cut to balance the budget on the tax rev. enue to be obtained from present sources. He said the administration had wisely" decided last spring to resume pump-priming. His message was notice to all concerned that the spending policy would continue. He challenged congress to adopt the economy policy.
 "If the congress decides to accept this point of view" he said, 'it will logically have to reduce the present functions or activities of government by one-third. The congress will have to accept responsibility for such re- duction; and the congress will have to determine which activities are to be reduced.
 Certain expenditures we cannot possibly reduce, such as the interest on the public debt. A few million dollars saved here and there in the nosnal or curtailed work of the old departments and commissions will make no great savings in the federal budget.
 Therefore, the congress would have to reduce drastically some ot certain items, such as aids to agri- culture and soil conservation, vet erans' pensions, flood control, high ways, waterways and other public works, grants for social and health security, civilian conservation corps activities, relief for the unemployed or national defense"