Evening star., 1941-01-09
TotuI Defense Budget

In his budget message for 1912
President Roosevelt carrying out the
mandate Of the people" has evil
denced his determination to meet the
challenge to democracy "as way OF
life" by providing the United States
with a total defense, and assuring an
uninterrupted flow of munitions to
the nations that are now resisting
totalitarian aggression. Because 1t
will require the maximum utilization
OF our productive capacity and man
power the vast cost of this program
should occasion little surprise. The
budget for the coming fiscal year
calls for the expenditure of approx
mately $17,5oo,O 100000, of which slO,-
81 100000 has been earmarked for
defense Added to- the appropria-
tions, authorizations and recon-
naendations for the fiscal years 1910
and 194l, this will bring to S28,480,-
100000 the cost of the current re-
armament effort. In addition, the
President proposes supplementary
appropriation, of an amount so far
unspecified, to finance wartime aid
to those nations which are defend
ing themselves against attack and
against the imposition of new forms
of government upon them
Rejecting increased national in
al
taxes enacted by Congress last year.
Federal revenues during the fiscal
year 1912 are expected to reach So
900 900 900, exceeding by $780,
100000 the total of all non-defense
expenditures. Though less than the
amount necessary to maintain the
Army and the Navy at their present
strength, 81 0O,000 900 is larger than
the total outlay for defense before
the start of the present emergency
program. Provided Congress keeps
within the limits set by the Execu-
tive, the coming fiscal year will see,
therefore, the balancing Of what
may properly be considered as the
Governments normal budget"
On the non-defense part of the
budget subject to administrative ac-
ton, the President proposes a fifteen
per cent reduction over the appropri-
atoms for the current year. This will
come as a disappointment to those
who had hoped for drastic cut in
normal outlays in view of the marked
business revival which certainly will
result from the expenditure of bill
lions of dollars on defense. Certain
obligations, of course, are fixed and
cannot be reduced, but in such items
as work relief it would seem that
large reductions could and should be
made. For this purpose the President
this year recommends an appropria-
ton of $995 100000, a cut of only
$500 ,0OO, 900 despite the fact that
Secretary of Labor Perkins says that
the back Of unemployment will be
broken" in 1941. A similar condition
exists in the case of the enormous
farm subsidies, which are reduced by
only $45,000,000 in the Presidents
recommendations.
With necessary outlays for defense
running to unprecedented peacetime
totals, the maintenance of the ma
tional credit requires the most severe
pruning of all other expenditures. 1t
Is to be hoped that Congress, when
1t begins work on the budget, will
take note Of the public demand for
real economies in this direction and
cut deeply into the Presidents
estimates.
Though the message contains no
specific tax proposals, the President
urges that larger percentage OF
defense payments be financed
through current tax receipts. This
Is a sound recommendation. Record
ing his opposition to tax policy
which restricts general consumption
IS long as unused capacity is avail
able, and as long as idle labor can be
employed" he favors financial pol
Icy aimed at collecting progressive
taxes out of higher level of ma
tional income" One Of the major
problems facing the new Congress
is that Of providing additional taxes
to meet a greater part of the costs
Of total defense. In seeking new
revenue, Congress should broaden
the tax base, and distribute, as widely
q possible, the financial burden Of
rearmament. Every American, gain
fully employed, should contribute
something to the cost Of defending
democracy.
Even with additional taxes, a sub
stantial part Of the cost of rearma-
nent must be financed through bor-
rowing. Since the statutory debt
Limit, now fixed at $40 ,000,0 ,000,0 900, will
be reached during the present fiscal
year, it is evident that the ceiling
must be raised. To protect the ma
tional credit, and safeguard the
country against imitation, it is essen
tial that Congress make provisions
for amortizing defense borrowing.
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