Evening star., 1940-01-16
1readway,' on Forum,
Says Fiscal Program
Is Out Of Control
Republican AssuiIs New
Deals Loose Fiscal
Policy in Radio Talk
Continued From Page B-60

Continued From Page B-6)
burdensome and crippling taxation.
The country at large demands
ordinary prudence and responsible
lity in the conduct of the public
business.
Above all, the country demands
honest bookkeeping and honest
statements of account from year to
year.
The joint committee might in
quire also into the Roosevelt theory
that huge Federal deficits are, OF
themselves, stimulants of recovery.
Let us not forget that the highest
national income ever enjoyed by
this Nation was $82, ZOO, 100000 in
1929-at a time when our Federal
budget was less than half the New
Deal average.
Why, we may ask, does Mr.. Roose-
velt assume that a nation may
squander itself into prosperity? If
that theory worked, would not every
nation have adopted it long ago?
And would not the whole world to-
day be enjoying everlasting pros
perity and peace-instead of uni
versal bankruptcy and war?
Indeed, the figures which disprove
the squander theory are already at
hand
In the 10-year period, 1919-29, this
country spent an average of $19,-
OO0, 100000 a year for durable goods
new plants, new equipment, new
homes. new systems of transporta-
ton and other such forms of cap
ita! goods.
But since 1888 our expenditures
for this type of goods have averaged
only about $1,000, 100000 a year.
We have, therefore, a deficiency of
roundly $8,000,000,000 a year for
seven years, or a combined def
cheney in this New Deal era of
$4,000, 100000.
To put it another way, under the
economic restraint of New Dealism
we have managed somehow to get
along with $50 900, 5000 less of cap
ital equipment than we would have
purchased under normal conditions.
AS an Offset against this tremend-
Gus air-pocket in our national econ
omy, the Roosevelt administration
has spent roundly $4,000 900 900 in
these seven years for its theoretical
recovery programs.
In short, the New Deal has driven
out of the market 81 of private buy
ing and private investment for every
Government dollar spent in "prim-
ing the pump"
Its Effects.
Wee see, therefore that with all it's
fabulous spending and all its reck-
less ventures, the New Deal actually
has replaced in terms of purchasing
power, only about half of the spend
ing it has driven to hiding through
its destructive policies against pri-
vate enterprise.
How long, at this rate, will it take
to get our 100000 unemployed back
to work?
A week ago tonight President
Roosevelt boasted in his address
before the Jackson Day dinner
here in Washington, that he had
achieved happy state Of immunity
against public criticism. His words
well may prove of great historical
significance. He said:
And when you have learned not
to worry about all these things,
there is really lot Of fun in this
job.
Perhaps that honest confession
explains in some measure the fiscal
policies of the New Deal over the
last seven years.
Certainly the prodigious spending
of public funds without thought OF
taxes or debts is a very enjoyable
enterprise-particularly If no sense
of deep moral responsibility to the
next four or five generations mars
the fun.
But there is more to sound public
finance than an attitude of imperi-
Gus indifference to public opinion
on the part of the Chief Executive.
And that is the grave problem
which confronts the Congress today.
Federal finances are out Of con-
troll.
Federal spending is on runaway
basis.
Federal bureaucracy is rampant,
headstrong, always grasping for
more and more power over the daily
lives of the people, and for more
and more from the public treasury.
Responsibility Needed.
Against this situation, a sense OF
faithful public service and proper
administrative responsibility some
how must be mobilized.
If the engineer has taken his hand
off the throttle and is on a care
free Joy ride with the Federal tax
ing power, then Congress must
undertake seriously to interpose
some measure Of public response
bility.
President Roosevelt's formal abdi-
cation of official responsibility for
sound fiscal policy marks danger
GUS failure of government.
Such is the record of these seven
years. After strong campaign
pledges to economy and lower taxes,
Mr.. Roosevelt has given seven Sue
cessive deficits.
He has piled up a mountain of
debt which mortgages the future OF
30,000,000 American families for a
century to come.
Every year under the New Deal
has brought more Federal taxes;
and every year Of New Deal econ
omy has brought larger Federal
pay roll.
When and where shall this run
away bureaucracy be brought under
control?
At the present rate of production
our national economy cannot carry
more taxes.
If order and stability are to be
achieved in Federal finances, they
are to be achieved only by a cur
tailment of extravaganza, waste and
reckless suuandering.