Evening star., 1939-11-24
Roosevelt Hints
AtSpecia| Tax
For Defense
Says Expenditures
May Be Increased
By $500, ,000, 900
By the Associated Press.

by lne Associated PreSS.
WARM SPRINGS, Ga. Nov. a.
President Roosevelt disclosed today
that some consideration was being
given the idea of a special tax to
finance expenditures for national
defense. which may be increased by
$500 ,o00, 900 in the next fiscal year.
These defense expenditures, the
President indicated at press con-
ference, will be in excess of S2,OO0.-
600 900, but probably not as high as
81 300 900 900. He differentiated,
incidentally, between appropriations
and expenditures for defense.
Questions about business and tax
alton led the President into a dis
cussion of defense and its financing.
Seeks to Reduce Deficit.
OF course, he said. the objective of
the administration was to cut down
all expenditures which possibly could
be Whitfield at the present time.
Assuming that reductions can be
made in the budget, that Congress
does not appropriate large sums be-
yond the budget estimates and that
tax revenues increase as thev are
now, the President said the result
would be reduction in this years
deficit.
But undoubtedly because of the
world situation, Mr. Roosevelt con-
tinued. larger sum must be pro-
vlded for defense-one about $500.
100000 more than was available this
year.
The factor, he said, raises a oues-
ton which he would like to submit
10 public discussion, which he de-
scrloed as always helpful. The
question is
Should We borrow money to nav
Tor emergency expenditures for de-
tense or pay as We go?
II the money is borrowed. he said.
II means no additional taxes. Paw
ing as we go. he said, would mean
leVylng some form of new national
defense taxes.
Nothing Decided Yet.
Ihat, the President said, is
thing the country ought to under
stand and think about. Nothing has
been decided yet, he said.
Reporters sought to lead him into
a discussion of types of new taxes
or amounts, but the Chief Execu-
tive said he was speaking only of a
principle and not of actual dollars
and cents.
II Congress decided on a pav-as-
you-go policy. he said it would then
De tlme to decide on the kind of
| taxes.
Reminded that Congress might
be reluctant to impose new taxes in
an election year, the President re-
peated that the matter was one of
principle, rather than of politics.
10 an inquiry whether the budget
would be balanced, aside from de-
tense outlays, Mr. Roosevelt replied
IN the negative. But he said there
would be very substantial decrease
IN the deficit, that it probably could
De cut more than half, if the budget
were lowered, tax revenues con-
tlnued to rise and defense costs
were paid as they were incurred.
Ihe contemplated addition of
soOO 1000 900 to those costs, Mr.. Roose-
welt asserted, would be partially for
additional persons in uniform.
Not Playing the Market"
Asked whether he believed an i'm
provement in business generally was
nKely TO continue for some time
'"H President smilingly lodged a
Jgnostlcation by saying he was
not playing the market.
The President had hopes the world
would be rid of war by next spring,
out gave no indication he believed
those hopes would be fulfilled.
Ihe President. attired in a green
tweed suit, sat at the steering wheel
OF his light touring car to talk with
neWsmen before their cottage at the
warm Springs Foundation. Mrs.
Roosevelt sat beside him.
The conference got under wav
with an announcement from Mr.
Roosevelt that the War Resources
Board had completed its task of
drafting plan for gearing industry
10 wartime needs He said the
board would be discontinued, but
that members would be asked to
tSee ROOSEVELT, Page A-l4J