Evening star., 1940-01-04


ects Administration will be able to
provide employment for an aver
age of 1,350,000 persons. The Ma
tional Youth Administration can en-
ploy an average of nearly 100000
American youths, and the Civilian
Conservation Corps will operate
1927 camps and provide for a
monthly average of 100000 en-
rollees. The Farm Security Admin
istration will operate on about 80
per cent of its 1910 level. Relief
expenditures should be closely geared
to actual needs. If conditions fail
to meet our hopes additional funds
may be necessary. I may, therefore,
submit revised estimates later in the
session.
Agriculture ProgramS.-Under the
broad heading of agricultural pro-
grams l have included agricultural
adjustment benefits, the surplus re-
moval program and parity payments
arising from 1910 appropriations.
Despite a gratifying general in
crease in farm income, agriculture is
still not receiving its proper share
of the national income. I am, there
fore, proposing to continue substan-
TALLY undiminished the various ag-
ricultural programs.
I have not, however, included es-
Inmates for new appropriations for
parity payments in l94l. 1 am in
fluenced by the hope that next
years crops can be sold by their
producers for at least IS per cent of
parity. 1 do not suggest in any
way abandonment of the policy of
parity payments heretofore adopt
ed, and future events may call for
some appropriation to this end. l
note, however, in passing, that the
Congress has failed to make any
provision for the financing of these
payments already made or obligated
for 1888 and 1899 crops.
Public Works and InUeStments.-
This broad class of expenditure rep
resents the use of Federal capital
for investment in useful public
works, for ship construction, and
for loans largely for aid to agri-
culture.
While the expenditures for these
purposes in l94l remain large. SUBJ
stantial portion of them arises from
existing appropriations or takes the
form of reimbursable loans.
The estimated expenditure for the
general public works program is
s64l 100000, but the proposed new
appropriation for this item to carry
on already authorized projects is
only $498,000,000 To obtain this
relatively low figure the starting of
important new projects has had to
be postponed and the purchase OF
additional land has had rigidly to
be limited This action brings the
public-works program down to the
minimum goal of $500 ,000, 900 a year
suggested by me on several previous
occasions, and conserves the reser-
voir of public projects for a time
when private construction declines.
Last year, in the interests of more
accurate and intelligible statements
of the financial operations of the
Government, I invited the attention
of Congress to the desirability of
capitalizing certain capital eXpendi-
lures of the Government that have
proved to be self-liquidating. I re-
new that recommendation at this
time. AS before, would confine this
principle to projects that are def
nitely capable of yielding revenues
sufficient to defray. with interest,
their cost of construction. In ac-
cordance with this principle, pro-
-liquidating loans of the Rural
Electrifcation Administration be met
though funds advanced by the Re-
construction Finance Corporation
instead of by direct appropriation.
Pensions, retlrementS, and assist
dnce.-This category includes grants
to the States under the Social Sc
curity Act for old-age assistance. for
maternal and child welfare, for pub
lie health work, and for aid to de-
pendent children and the blind. as
well as veterans benefits, railroad re-
tirement benefits, and contributions
to Federal employe retirement funds.
1t does not include insurance bene-
fits paid out of the old-age and un-
employment trust funds. This gen.
eral category affects the individual
security and health of millions of
citizens. It's growth reflects mainly
the beginning of a comprehensive
social-security program.
Interest on the pubic debt-Obvi-
ously no reduction in this item can
be made in the next year. The av-
erage interest rate paid on the pub
lie debt for the fiscal year 1929 was
39 percent. The present computed
rate is 2.6 percent.
Regular operating erpenses.-This
item represents the basic financial
requirements of the Government.
Blue pencil inroads are not easy to
make. In the face of large and
appealing requests for increases I
have held appropriations and esti-
mates of expenditures generally to
the 1910 level or below. Where leg
islation has added new activities I
have offset the cost by reductions
in old activities.
have carefully checked the in
dividual estimates under these broad
categories and I am satisfied that
no lower figures can be attained
except at the expense of impairing
the efficiency with which laws are
administered or of working undue
hardship on individuals and eco