Evening star., 1940-01-16
1readway, on Forum,
Says Fiscal Program
'|s0ut Of Control
Republican AssuiIs New
Deals Loose Fiscal
Policy in Radio Talk

Policy" last night in the National
Radio Forum, arranged by The Star
and broadcast over a Nationwide
network of the National Broadcast
ing Co. The text of his address
follows:
In his memorable economy mes
sage to Congress on March 10. 1888,
President Roosevelt uttered the
great historic truth which have
chosen for my text tonight. On that
occasion, the President said:
TOO often in recent history lib
eral governments have been wrecked
on rocks of loose fiscal policy. We
must avoid this danger"
But have we avoided this danger?
Since 1888 Mr.. Roosevelt has sent
seven budget messages to Congress.
In turn, each has shown huge
deficit; each has added billions of
dollars to the national debt.
Since the fiscal year 1882, annual
Federal revenues have tripled; yet
Mr.. Roosevelt's seven budgets to
date show combined net deficit of
roundly s24,000,000,O00.
With the new budget for the fiscal
year ending June 80, 1941, we are
approaching the statutory debt limit
of $45, 100000. And once more
the Nation is asked to contribute
new taxes-this time to the extent
of $3.50, 100000 a year.
Is it not then, the patriotic duty
of every citizen to inquire earnestly
at this moment into the spending
policies of the Federal Government?
The question is far above parti-
sanship. For if we are approaching
'the rocks of loose fiscal policy
against which the President so en-
phatically warned in 1888, the in
terest of every citizen is identical.
Such a disaster would be no re-
specter of person, position, or party.
In a very literal sense we would all
be in the same boat.
President Knows Dangers.
The dangers of reckless spending
are known to the President. In his
1882 campaign he warned eloquently
against these dangers. His words
are worthy of repetition today:
Nov, the credit of the family
depends chiefly on whether that
family is living within its income
And this is so of the nation. If
the nation is living within it's in
come, its credit is good.
IF, in some crisis, it lives beyond
Its income for a year or two, it can
usually borrow temporarily on rea-
sonable terms.
But if. like a spendthrift, it
throws discretion to the winds, is
willing to make no sacrifice at all
In spending, extends its taxing to
the limit of the peoples power to
pay, and continues to pile up deficits,
1t is on the road to bankruptcy"
With that statement there can
be no disagreement. But how are
we to square the record of these last
seven years with such strong warm
ings against fabulous spending? Are
we to assume these self-evident
truths of 1882 and 1888 are no longer
valid? If that be the case, when
did the historic fundamentals of
public economy cease to operate?
But Of course we cannot make so
violent an assumption. For in every
message, and often in the public
forum, the administration spokes-
men have assured us that ultimately
the budget would be balanced.
First We would have a balanced
budget when the emergency
passed. But when the first emer-
gency had passed a second was at
hand, then third. Whatever the
nature of these successive crises
they were all alike in one important
respect. The only possible solu-
ton suggested by the President was
more spending, more lending, more
taxes, more deficits-and more
debts. Taxes were increased again
and again, and still the deficits con-
tinued.
At length we were told that spend
Ing could not be reduced, but that
with business recovery, increased
revenues would balance the budget
Program Out Of Control.
Now the President tells us frankly
IN his current messages, that al
though industrial activity has at
tanned the peak boom levels of 1929,
we still need $3.50 100000 a year in
additional taxes to keep the 1941
deficit down to roundly $500 0O0, 900.
These facts all point clearly in
one direction, namely, that the Fed
eral fiscal program is out of control.
The one and only reason the
budget has not been balanced dur
Ing the last seven years is because
the administration never has tried
honestly to balance it, either by re-
ducing expenditures to the level of
anticipated revenues or by increas-
Ing taxes sufficiently to meet current
outgo. Instead, those in authority
have preferred to indulge the hope
that eventually a rising national in
come would make possible sufficient
revenue to meet expenditures. This
Is gambling with national solvency
On this point, too, I may cite no
less an authority than President
Roosevelt himself. In his stirring
economy message of March 10, 1888,
the President said
Upon the unimpaired credit
Of the United States Government
rest the safety of deposits, the
security of insurance policies. the
activity of industrial enterprises,
the value of our agricultural
products and the availability of
employment. The credit of the
United States Government def
ritely affects these fundamental
human values 1t, therefore, be-
comes our first concern to make
secure the foundation National
recovery depends upon it.
Too often in recent history lib
eral governments have been
wrecked on rocks Of loose fiscal
policy. We must avoid this
danger.
Cant Afford tn Gamble