Evening star., 1940-01-06

Taft Offers 5-Poinf
Plan 10 Balance
Federal Budget
Tells Nation Program
Would Reach Goal
Within Two Years

Would Reach Cool
Within Two Years
BY the Associated Press.
CHICAGO, Jan. Ex-senator Robert
A. Taft of Ohio left a flve-point
program at the Presidents doorstep
today and contended 1t would bal
ance the Federal budget within two
years.
The Senator, a candidate for the
Republican presidential nomination,
disclosed his budget balancing plan
in an address last night to the Chi
cago Bar Association and ma
tional radio audience.
Entitled Mr.. President, Here's
How to Balance the Budget" the
speech was a reply to President
Roosevelt's offer to award the Sen
ator a prize If he could show how
to balance the budget.
The Presidents challenge, said
Senator Taft, was an admission that
'he is unable to get the Government
or the country back to normal"
Tafts Program.
Mr.. Taft contended the books
would balance at approximately
$1,000 100000 within two years if
this program were followed:
l. The President must wish and
be determined to balance the budget.
2. Eliminate bureaus, reduce num-
ber of employees, reorganize.
3. Change method Of handling re-
lief, housing, agriculture, Govern
ment loans.
4. End grants for local public
works, reduce Federal public works,
reduce subsidies.
S. Play no favorites, subject Army
and Navy estimates to critical analy-
| sis
A budget balanced under those
provisions, he said, would still pro-
| vide "a reasonable allowance" for
relief, old-age pensions, housing and
soil conservation.
The present tax system. he added,
should provide $1,000, 100000 in
revenue If prosperity returns:
otherwise I'VE will have to increase
taxes, undesirable as that is, for the
alternative is worse"
Genuineness Questioned.
Mr. Taft said the last budget
message to Congress moves very
gingerly in the right direction" but
that he questioned the genuine
ness Of the Presidents new-found
desire to reduce spending" He as
serted there was mo evidence that
the President wants to stop spend
ing"
The Senator suggested that bu-
reaus could be eliminated through
small committee of men with prac-
tical experience in business and gov
ernment" which would plan the
Governments housekeeping lin the
light Of what the people are willing
to pay their housekeeper."
He advocated administration of
direct relief and work relief by
single local agency, with Federal
assistance equal to about two thirds
Of the entire cost.
Mr.. Taft said all Federal grants
for local public works should end,
asserting that no community or
group would refuse to join in a
general movement to avoid national
bankruptcy if they can be assured
that every other group is required
to go along"
If the present administration as
serts, as apparently it does. that the
budget cannot be balanced" the
Senator asserted, then it cannot
appeal for vote of confidence to
the people of the United States, for
the only alternative to balancing the
budget promptly is national bank
ruptcy.'
Deficit Spending Assailed.
Unless the Federal Government
makes both ends meet, Mr.. Taft
warned, imitation will result such as
that in Germany when "a pair of
shoes cost 81 900 to 100000
Mr.. Taft constantly assailed the
administration policy of deficit
spending and pump printing" as
"a policy which will destroy all the
good that may come from the re-
forms he (Roosevelt) has initiated"
Mr.. Taft said the President
should have used his veto power
on congressional appropriations,
saying, he has not vetoed a single
spending bill since the bonus bill
in 1885,"
Although suggesting a detailed
study of the subject. Mr.. Taft ques-
toned the worth of a number of
New Deal agencies He mentioned
these:
The Electric Home and Farm
Authority, Central Statistical Board,
National Resources Planning Board,
National Power Policy Committee,
Disaster Loan Corp, Codification
Board, Office of Government Re-
ports (formerly known as the Ma
tional Emergency CounciD, Mari
time Labor Board, United States
Employees" Compensation Commits
sion, Division of Cultural Relations
and various boundary commissions
in the State Department, Puerto
Rico Reconstruction Commission
and Bituminous Coal Division in
the Interior Department, various
consumers counsel and various in
formation services of the different
departments"
U. S. Pay Roll Increase Cited.
The New Deal, he charged, has
increased the number of Federal en-
ployes from 563, 900 in 1888 to 932, 900
today" at an additional pay roll cost
of $1,000, ,000, 900.
Federal farm employees were said
to be scattered all over the United
States, wasting the substance of the
farmer like a plague of grasshop-