davidaulloa/AmericanStories huggingface dataset:
Evening star., 1941-01-08
S375,00O Item Is Asked
To Stop Capital Leaks

To stop water leaks into offices
and shops beneath the west ter
races of the Capitol Building, an
item of $375 900 is recommended by
President Roosevelt in his budget
sent to Congress today.
Beneath the terraces, the asphalt
roof of which has not been replaced
in 20 years, are such facilities OF
the Capitol as the pages school
captain of police, document storage
for the House and Senate, part OF
the air-conditioning equipmnet, ma
chine and carpenter shops and an
electric substation. The old pave
ment would be removed, new water
proofing laid down and new pave
ment for the roof constructed.
An increase is provided the archi-
tect of the Capitol, David Lynn, for
improving the Capitol grounds, prin-
cipally through new paving and i'm
provement in sewer and drainage
systems. The item for grounds i'm
provement was increased from s131,-
99l this fiscal year to an estimate
Of $507 1856 for 1912. .
Evening star., 1941-01-08
Woys Of improvement

see many ways in which our tax
system can be improved without re-
sort to restrictive tax levies. By
adjustments in the existing tax laws
the present rates of progressive tax
alton could be made fully effective,
as believe the Congress intended.
We must face the fact that the
continued maintenance of an ex-
panded Army and Navy and the
interest on our defense debt will call
for large Federal expenditures in
the years ahead Our tax system
must be made ready to meet these
requirements.
am as much concerned about
our long-run need of an improved
tax system as I am about the i'm
mediate necessity of financing the
defense program.
have often expressed my belief
that no really satisfactory tax re-
form can be achieved without re-
adjusting the FederalState local
fiscal relationship. I urge thorough
investigation of the possibilities of
a comprehensive tax reform; I pro-
pose that meanwhile we make all
possible progress in improving the
Federal tax system.
Evening star., 1941-01-08
Federal Road Grants
To Share S1,340,000
Cost Of Projects
Includes Widening Of
Three Important Traffic
Arteries in District

Street widening and improve
ment projects estimated to cost
S1,340, ,000-half of which would be
financed out of the Federal road
aid grants to the District-would
be carried out under provisions OF
the 1912 budget.
Although the projects are not
listed in the Budget Bureau re-
port to Congress, Capt. H. C. White
hurst revealed they would include
the widening of three important
traffic arteries-Third street NV
from H street to New York avenue;
M street Sc. from Fourth to
Eleventh streets and U street NV
from Tenth to Eighteenth street.
Other Projects.
The other projects to be financed
half-and-half by the District and
the Public Roads Administration
are either resurfacing or new paw
ing, as follows:
Alabama avenue Sc, from Penn
sylvania avenue to Bowen road.
South Capitol street, from At
lantic street to the District line.
Pennsylvania avenue Sc, from
Seventeenth to Eighth street.
West Virginia avenue NE, from
Mt. Olivet road to New York avenue
Forty ninth street NE, from
Dean street to Sheriff road.
Utah avenue NV, from Nebraska
to Western avenues.
Includes Reno Road.
Reno road NV, from Rodman
to Van Ness streets.
Yuma street NV, from Chesa-
peake street to Nebraska avenue
to Davenport street.
South Capitol street, from Howard
road to Nichols avenue Sc
Overlook street Sc, from South
Capitol to Chesapeake streets.
Capt. Whitehurst explained the
major project in this particular
program would be the surfacing OF
South Capitol street from Howard
road to Nichols avenue-a s25000(
job. He said this street would even
tually be the main approach to the
road running to Indian Head, Md.
Evening star., 1941-01-08
Would Stort Payments

Tar policy-There is no agreement
on how much of such an extraor-
dinary defense program should be
financed on pay-as-you-go basis
and how much by borrowing. Only
very drastic and restrictive taxation
which curtails consumption would
finance defense wholly on a pay-as-
you-go basis. I fear that such taxa
ton would interfere with the full
use of our productive capacities. We
have a choice between restrictive tax
measures applied to the present ma
tional income and higher tax yield
from increased national income un-
der less restrictive tax measures. I
suggest therefore, a financial policy
aimed at collecting progressive taxes
out of a higher level of national in
come. I am opposed to a tax policy
which restricts general consumption
as long as unused capacity is avail
able and as long as idle labor can
be employed.
We cannot yet conceive the COM
plete measure of extraordinary taxes
which are necessary to pay off the
cost of emergency defense and to
aid in avoiding inflationary price
rises which may occur when full ca
pacity is approached.
However, start should be made
this year to meet a larger percentage
of defense payments from current
tax receipts. The additional tax
measures should be based on the
principle of ability to pay. Because
it is the fixed policy of the Govern
ment that no citizen should make
any abnormal net profit out Of ma
tional defense, I am not satisfied
Evening star., 1941-01-08
The National Program

In this budget I am presenting a
Hogram for 1912, carefully worked
oJf to combine these objectives. This
program, including defense and
nondefense activities, will cost about
us billions of dollars. For the
same period. we expect the largest
national income for the Nation as
a whole and also the largest tax
receipts
In addition to, but essentially and
rightly as complement to this pro-
gram, the time has come for imme-
diate consideration of assuring the
continuation of the flow of vitally
necessary munitions to those nations
which are defending themselves
against attack and against the i'm
position of new forms of govern
ment upon them.
Such a Complementary program
would call for appropriations and
contract authorizations over and
above this budget. The sum of all
these defense efforts should be
geared to the productive capacity of
this Nation expanded to literally its
utmost efforts.
Evening star., 1941-01-08
Questions Debt Limit

BOrrolDing-A substantial part of
the defense program must, of course,
be financed through borrowing. In
dividual investors will be given
increased opportunities to contribute
their share toward defense through
the purchase of Government secur-
tiles. Such borrowing is not haz-
ardouS as long as it is accompanied
by tax measures which assure
sufficient tax yield in the future
This raises the question of the debt
limit. The Congress, by making
appropriations and levying taxes,
in fact, controls the size of the
debt regardless of the existence of
a statutory debt limit, makes ap-
preparations and authorizations
which require borrowing in excess
of that limit, it has, in effect,
rendered that prior limit null and
void. In the first 130 years of our
national life, the Congress con-
trolled the debt successfully with
out requiring such limit. In view
Of these facts, question the signif-
icance of a statutory debt limit,
except as it serves as a fiscal
monitor.
The fiscal policy outlined here
would be in accord with our objec-
tive of financing the defense pro-
gram in an equitable manner, IA
cilitating full use of our national
resources, and avoiding inflationary
policies which would aggravate the
problems of post-defense adjust
ment.
The debt problem-For more than
25 years the world has been in a
state of political turmoil and its
economies have been out of balance
This world condition is reflected in
unba anced budgets in all countries
Here the first World War, the war
against the depression, the present
defense program, all resulted in
large additions to the Federal debt.
understand the concern of those
who are disturbed by the growth of
the Federal debt. Yet the main fis-
cal problem is not the rise of the
debt, but the rise of debt charges
in relation to the development of
our resources.
The fight for recovery raised ma
tional income by more than 80 bill
hon dollars above the depression
/ depth. In the same period the total
annual Federal interest charges in
creased by 400 million dollars. Even
if these interest charges increase,
they can scarcely present a serious
fiscal problem so long as a high
level of national income can be
maintained.
Evening star., 1941-01-08

place to connect the Powell Junior
High School and the Johnson Build
ing.
2 For completion of six unfinished
classrooms at the Woodrow Wilson
High School, 100000.
g. A net increase of two school
officers, including one administra-
tive principal and two assistant
principals, with one teaching prin-
cipal being eliminated. These new
positions will be at junior or senior
high schools. The Board of Educa-
ton had asked for 18 new officers
4. Of IS additional clerks request
ed only were allowed. One attend
ance officer also was added.
5. Elimination of the troublesome
rider which limited the salary of
the public school librarians to the
average of the public librarians do
ing the same type of work again is
sought.
Would Retain Another Rider.
6. Retention of another rider
which provides that when teaching
vacancies occur they may be filled
by assignment of teachers of special
subjects to classroom duty is rec
commended.
7. A $4,000 increase for Americana
zation work at the Webster Ameri-
canization School is provided
8. A $4,000 item for education OF
crippled children is provided, since
this work was transferred from the
Welfare Department to the schools
Welfare officials have insisted this
service should be performed by
school officials.
9. For repairs and improvements
to school buildings and grounds, a
total of $4,000, which is about
100000 less than the schools re-
quested, is provided. The fund,
however, is $4,000 above current ap-
propriationS, indicating that the city
heads took cognizance of recent agi-
tation for repairs. School authori-
ties have contended they are far
behind in resurfacing and general
repairs because of failure to get
adequate funds. During the last 10
years school property has increased
in value by S20,OO00OO. while the
repair fund has remained stationary
or has been cut each year.
Evening star., 1941-01-08
Continuance of W. P. A.

Works Projects Administrations
The defense program has already
resulted in a substantial increase
in production, employment and ma
tional income. Although industrial
production is now running 20 per
cent above the average level Of
1929, there are still many persons
either unemployed, or employed as
emergency workers, or incapable OF
steady employment.
The defense program will lead to
further unemployment, and also
to a further increase in the labor
force and to shift from part time
to full time OF over time employ
ment. But even under the full de-
fense program we cannot expect full
absorption of the labor force be-
cause some people just cannot be
fitted into the picture. There will
be some localities with a labor
shortage at the same time that
others have a labor surplus. There
will be shortages of particular skills
and aptitudes at the same time that
others are in surplus.
I recommend an appropriation of
995 million dollars for work relief
for the full fiscal year. This is
400 million dollars less than the
amount required for the present
fiscal year. 1t will not be necessary
to use this full amount if the de-
fense program should result in a
more general unemployment than
is presently indicated. The expen-
diture can also be reduced if en-
ployers will contribute by hiring
unskllled or semi-skilled or older
workers for those jobs where special
sk!lls are not required.
We must face the fact that even
with what we call full employ
ment" there will remain a large
number of persons who cannot be
adjusted to our industrial life. For
this group, the Government must
provide work opportunities.
Evening star., 1941-01-08
Protection From Aggression
And Internal SIockness Urged
u.s. Billions Declared Necessary to Meet
Combined Objectives During Fiscal Year

program during the last six months
amount to 1,750 million dollars.
This is two and one-half times the
amount spent for national defense
in the same period of the fiscal year
1910. However, these expenditures
| understate the progress already
made. In six months, contracts and
orders for 10 billion dollars have been
placed. This means that in addition
to present defense production, all
over the country more factories,
large and small, are getting ready
rapidly to increase production.
Once these preparations have been
completed actual deliveries and ex-
penditures will be greatly accele-
rated.
1 expect actual expenditures to
be stepped up to four and three
quarter billion dollars in the six
months ending June, 1941, and to
almost II billion in the fiscal year
1912. We shall actually expend
more than 25 billion dollars for de-
fenSe within a 3-year period. This
can be accomplished, but only if
management, labor and consumers
cooperate to the utmost.
Evening star., 1941-01-08
Social Programs

1t is our policy to retain the ideals
and objectives of our social ana
economic programs in the face OF
war changes. The costs of those
programs affected by economic ac-
tivity are flexible. Because OF the
defense effort some of these pro-
grams can be carried on at a lower
cost. In other cases, no curtailment
is possible without sacrificing our
objectives.
We should realize, however, that
even with a fully functioning de-
fense effort there will remain special
areas of need and that social
security, agricultural benefits, and
work relief contribute to total de-
fense in terms of the health and
morale of our people.
Social security porgroms-1 rec
ommend the continuance in full
measure of the social security pro-
grams. This includes not only the
payment of old-age benefits as re-
uuired by law, but also aid to youth
and continued payments toward the
State aid of old persons not covered
bv the insurance benefits; aids to
children and to the physically
handicapped. In total, these services
will require approximately the same
expenditure as in the current fiscal
year, except for some increase In
grants to the States as required by
law.
Furthermore, I deem it vital that
the Congress give consideration TO
the inclusion in the old-age and
survivors insurance system and the
unemployment compensation system
of workers not now covered.
Agricultural programs The in
creased domestic market for farm
products, resulting from defense ex-
pendtiture, will improve the income
position of many farmers At the
same time the curtailment of foreign
markets, particularly in cotton,
wheat and tobacco, would leave large
numbers of these farmers IN a
serious plight without the con-
tinuance of the farm programs. After
weighing both of these factors, I
estimate a reduction of $45 100000
in the agricultural programs. We
are definitely maintaining the prin-
ciples of parity and soil conserva-
ton.
Public ,uorks-During this period
of national emergency it seems ap-
propriate to defer construction
projects that interfere with the de-
fense program by diverting man
power and materials. Further, 1t IS
very wise for us to establish a
reservoir of post-defense projects TO
help absorb labor, that later will be
released by defense industry.
With this in mind, I am recon-
mending reductions for rivers and
harbors and f1ood-control work.
Where possible, without placing the
projects or the water users thereof
in jeopardy, reductions are proposed
in the expenditures for reclamation
projects. I have requested that
further contracts for the construc-
ton of public buildings outside the
District of Columbia be held in
abeyance for the present. On the
other hand, I have recommended
funds for power and other projects
considered essential to national de-
fense.
Projects under construction, or
on which bids have been solicited,
will 81 forward 70 completion.
Throughout the Federal service
Evening star., 1941-01-08
The tuH tert OF the Presidents
message tollo1Us.

The budget of the United States
Government for the fiscal year end
Ing June 80, 1912, which I transmit
herewith, is a reflection of a world
at war. Carrying out the mandate
Of the people, the Government has
embarked on program for the total
defense of our democracy. This
means warShips, freighterS, tanks,
planes and guns to protect us
against aggression. and jobs, health
and security to strengthen the bull
warks of democracy. Our problem
in the coming year is to combine
these two objectiveS so as to pro-
tect our democracy against external
pressure and internal SlackneSS.
The threatening world situation
forces us to build up land, sea and
air forces able to meet and master
any contingency 1t is dangerous
to prepare for little defense 1t is
safe only to prepare for total de-
tense.
Total defense means more than
weapons. 1t means an industrial
capacity stepped up to produce all
the materiel for defense with the
greatest possible speed. 1t means
people of health and stamina, con-
scious of their democratic rights and
responsibilities. 1t means an eco
nomic and social system functioning
smoothly and geared to high-speed
performance. The defense budget,
therefore, must go beyond the needs
OF the Army and Navy.
1t is not enough to defend our
national existence. Democracy as
a way of life is equally at stake.
The ability of the democracieS to
employ their full resources of man
power and skill and plant has been
challenged. We meet this chal-
lenge by maximum utilization of
plant and man power and by main
tanning governmental services, social
security and aid to those suffering
through no fault of their own.
Only by maintaining all of these
activities can we claim the effective
use of resources which our demo-
cratic system is expected to yield,
and thus justify the expenditures
required for its defense.
Evening star., 1941-01-08
Increase Is Proposed
For Selective Service

Proposing an increase in funds for
the selective service system, an i'm
portant part of the total defense" /"
President Roosevelt today recon-
mended to Congress an estimate of
$33 ,500,0 900 to run the organization
drafting Americas manpower into
the Army, during the fiscal year
1912.
This compares with an appropria-
ton of s24.825, ,10s for the present
year 1941.
Evening star., 1941-01-08
Zoo Gets Cut Of $3.50
Instead Of Increase

Zoo Director William Mann not
only did not receive any of the
budget increases he asked of the
District Commissioners last fall
but actually takes a $3.50 cut in the
1912 budget sent to Congress today.
The $3.50 decrease came in the
transportation equipment category.
He had requested an increase
of $218,875 over 1941 appropriations
of $239.910. Net result is an estimate
of $239 ,260.
The increase had been requested
for repairs to Zoo roadways and
animal houses and additional per-
sonnel.
Evening star., 1941-01-08
Defense Expenditures

SiXty-tWo per cent of the eXpen-
ditures proposed in this budget are
for national defense. No one can
predict the ultimate cost of a pro-
gram that is still in development
for no one can define the future.
When we recall the staggering
changes in the world situation in
the last six months. we realize how
tentative all present estimates must
be.
These expenditures must be seen
as a part of a defense program
stretching over several years. On
the basis of the appropriations and
authorizations enacted for national
defense from June, 1910, up to the
present time, plus the recommended
tions for supplementary appropria-
tions and authorizations for 1941 and
the recommendations contained in
this budget for 1912, we have pro-
gram of % billion dollars.
This is a vast sum- difficult to
visualize in terms of work actually
to be done. If we can prove that
we are able to organize and execute
such gigantic program in a demo-
cratic way, we shall have made a
positive contribution in world in
which the workability of democracy
Is challenged.
This defense program is sum-
married below:
AppropriationS. authiZatio
1otio T1tt1o
Evening star., 1941-01-08
National Gallery of Art
Appears in Budget

The new National Gallery of Art,
on the Mall, which is to open to
the public next spring, with its
priceless collections of paintings,
sculpture and other objects of art,
appears in President Roosevelt's
budget message to Congress today
with recommendation for appro-
priation of $3.50, 300 for salaries and
expenses during the fiscal year 1912.
The gallery is administered as q
part of the Smithsonian Institution,
in whose budget it is listed. The
appropriation for salaries and ex-
penses of the gallery during the
present fiscal year 1s41 was $500. 900.
Evening star., 1941-01-08
Financing Program

Estimates of expenditures and rep
enue compared-The defense pro-
gram dominates not only the ex-
penditure side of the budget, but
influences also the expected revenue.
Economic activities and national
income are rising to record heights.
From a higher national income
greater revenue will flow, although
in the case of most taxes there is,
of course, time lag. The revenue
for the fiscal year 1941 will reflect
some of the increase in defense
activities; the revenue for the
fiscal year 1912 will be affected to
a larger extent; but the full i'm
Evening star., 1941-01-08

other projects are being deferred
until a more appropriate time. How
ever, surveys and the planning of
new projects will go forward as that
construction can be resumed with
out delay. This will produce a
long list of public work projects,
apart from defense construction,
arranged according to priorities
Such a list could be submitted to a
future Congress for the appropri-
alton of funds to put it into opera
ton,
Evening star., 1941-01-08
Home Hygiene Glasses

Two classes in home hygiene and
care of the sick will be started to-
morrow and Friday by the District
Chapter of the American Red Cross,
Miss Caroline Thomson, who will
conduct the classes, announced.
Each class will receive 26 hours of
instruction.
Evening star., 1941-01-08
Non Defense Needs

The increased military expendi-
lures permit substantial reduction
in defense expenditures, particu-
larly for those activities which are
made less necessary by improved
economic conditions. Obligations
such as interest, pensions, and in
surance benefits are fixed. Almost
as fixed are the appropriations for
which the Congress has already made
legislative commitments - security
grants to the States, Federal aid for
highways, the 30 per cent of tariff
revenue set aside for reducing agri-
cultural surpluSeS, and similar items.
Together, these fixed items make up
nearly half of the non-defense ex-
penditures I am proposing for the
fiscal year 1912. For the items sub
ject to administrative rather than
legislative action. I have been able
to reduce expenditures by 600 million
dollars, or IS per cent. This reduc-
ton and its relation to total expen-
ditureS are shown below:
Estimated in mil
lions Of dollars. Per
Expenditures. 1912. 194l. cent
Defense
program s1O,811 s6464 +67
Fixed COM
mitments- 31e6 1884 II
Other
activities 3,47S 4O94 -15
r., e,71os s,os Loo
Excluding returns from Government
corporatlonsD
Certain reductions are possible IN
carving out the established policies
relating to public works and relief,
but little change can be made IN the
regular operating costs of govern
ment. AS I indicated in my budget
message last year, the operating costs
of the regular departments are al
ready down to the bedrock OF the
activities and functions ordered by
the Congress. In spite of the defense
pressure on many of these regular
programs, expenditures will be kept
below the level of the current year.
Evening star., 1941-01-08
President Emphasizes Defense Needs 942 Budget Message

that existing laws are in this respect
adequate.
I hope that action toward these
ends will be taken at this session
of the Congress.
Evening star., 1941-01-08

In presenting the above calcula-
tions I am assuming that the Con-
gress will accept the recommended
ton of the Secretary of the Treas
ury that the earmarking of taxes
for retirement of defense obliga-
tions be repealed and the pro-
posal of the Postmaster General
that the Scent rate on first-class
postage be continued.