Evening star., 1940-01-05
Up to CONGRESS

estimates and his covering message
to Congress are instruments which
can best be tested only by the pas
sage of time.
For the eleventh consecutive year
a Chief Executive of the Nation
first Mr.. Hoover and now Mr. Roose-
velt-has suggested to the Congress
that the Federal Government must
live beyond it's income for twelve
month fiscal period. Cumulatively,
the effect of this policy has been to
raise the gross public debt to record
proportions, increasing it by some
$28, ,000,00O000 to a point estimated
at just short of ,OOO,0OO0OO on
July /, 194l.
From both Presidents have come
varied explanations in justification
of their recommendations; from each
have come criticism of the others
deficit financing policies.
Yesterday Mr.. Roosevelt assured
the Congress that there is no eco
nomic ground for anxiety, so far as
the national debt is concerned, as
to the Nations future" Many stu
dents of government and finance
will remain skeptical despite this as
surance and it is the ultimate deter
mination of this question which in
particular must be left to the future.
Even those who share the Substan-
tial doubts as to the wisdom of con-
tinuing unbalanced budgets, how
ever, may find certain distinctly
encouraging features in the esti-
mates submitted yesterday.
First, the President calculates es-
sential expenditures at S8,424,000,-
900, lowest figure since his 1888
budget, submitted three years ago.
To reach this total, the Chief Exec
utive cut deeply but with apparent
care into items which have been
predominant in the pump -priming
theories of recent years.
Unfortunately, but with complete
justification, in the opinion of The
Star, increased national defense
allowances prevented the reductions
in other categories from being fully
reflected in the estimate of total
expenditures.
Accompanying his spending esti-
mates, the President foresees nor
NAL Government receipts at SIS, ,548,-
100000, an apparently conservative
expectation in view of 1910 esti-
mates. And to reduce the spread
between these two basic figures, Mr..
Roosevelt proposes, first, that $780,
100000 in excess capital funds be
withdrawn from Government cor
porations and, secondly, that special
defense tax calculated to raise $780,
100000 be levied. Both suggestions
are meritoriouS on their face, and
their effect of reducing the expected
deficit to $1,7160OO,O0O, lowest since
the above mentioned 1888 budget,
is more than worth while.
In receiving these figures Congress
will not, of course, fail to note that
any divergence from Mr.. Roosevelt's s
proposals in the direction of greater
expenditures or hesitancy to levy
the required taxes will bring them
face to face with the disagreeable
task of considering legislation to
raise the public debt limit from its
present statutory maximum of s45,-
0OO0OO,000 In other words, the re-
sponsibility for forcing politically
dangerous and economically ques-
tionable step will be theirs alone If
they disregard presidential counsel
in this instance.
For his part, the Chief Executive
has left in doubt at the moment only
the possibility of having to ask for
more than $1,300,00O,000 in work re-
lief funds. 1t is to be hoped that i'm
proving business trends will obviate
any such necessity. If they should
not, then fortnight steps should be
prescribed to provide the extra sum
without further addition to the debt.