Evening star., 1941-04-29

bought our goods will be unable to
do so, because of their impoverish-
ment, and here in this country we
will face tremendous unemploy-
ment, with a public overall debt
which will certainly reach 100000
100000, and maybe more.
In the support of this tax bill, for
the first time since the adminiStra-
ton adopted the policy of deficit
spending and pump-priming to pro-
mote business recovery, your Gov
ernment and the administration are
taking a realistic view of our finan-
cial condition. 1t would have been
much better, I think, if there had
been greater taxation during these
past years of deficit spending, or,
better still. if the spending had not
been so great.
Under our democratic system of
government, the only effective re-
sistance to public spending is the
imposition of taxes. We have on one
hand groups of citizens demanding
public spending. These demands
can be held in moderation only by
the protests of the taxpayers who
must pay the bill. This is the usual
process of our democracy. 1t is the
system the American people followed
since the beginning of our Republic
until eight years ago when We adopt
ed the fallacy of trying to purchase
prosperity with borrowed money.
Tax conscious citizens, alert and
vigilant to public extravaganza, pro-
vide one of the most effective bal
anceS inherent in our constitutional
democracy. Under New Deal spend
ing for the past eight years, this
protection has been imperative, as
the Government, instead of exacting
taxation for current disbursements,
at least in major part, consistently
spent during this long period 81
for every dollar received from tax
alton. and thus has accumulated
a public debt of great proportions.
The result is that the average per-
son in America has not been made
conscious of unprecedented expendi-
lures, as one-half of the expendi-
lures were financed by the issuance
of Federal bonds, and not from tax
alton.
Responsibility on Congress.
I have always confidently believed
that if taxes had been levied cur
rently to cover the expenditures of
the vast sums for the past eight
years the protests of the taxpayers
would have been so vehement and
politically effective as to have pre-
vented much of the waste and ex-
traVagance that have occurred. It
has truly been said that "the power
to tax is the power to destroy" and
a great responsibility now rests upon
the Congress to distribute and equal
lze this terrific burden of taxation SO
that the least possible Injustice.
hardship and interruption to busi-
ness will result.
While the Treasury does not esti-
mate it as high, 1 confidently pre-
dict that in the coming fiscal year
the Federal Government will spend
a total of S25 1000, 100000. In fact.
the authorizations and appropri-
ations already made are nearly
twice that amount. Productive ca
paclty is the only restriction on even
greater expenditures. That is to say.
the capacity of our manufacturing
plants to produce war materials of
every character and description
ships, tanks, airplanes, guns and
other military supplies.
The ominous events in recent
weeks in Europe, happening with
lightning rapidity, are acting as a
spur and incentive to more i'm
mediate and greater military ex-
penditures for our own defense and
aid to England.
Roughly speaking, this $25,0OO,-
100000 of expenditures for the next
fiscal year will be divided as follows:
First, 8 billions of appropriations for
so-called peacetime or non-defense
spending. Second, perhaps as much
as billions will be spent for aid
to Great Britain. The remainder
will be spent for our own defense
and the operation of our military
establishments.
When you and I, in our private
affairs, face the need of an unex-
pected and unprecedented expendi-
ture, which is of such a vital char
acter that our failure to provide the
funds endangers those things near
and dear to us-perhapS the very
existence of our loved ones-we look
around and reduce as we can our
spending for those things less essen
tial-those things we can very well
do without, until the emergency that
faces us is over. Your Federal Gov
ernment is faced with such an emer-
gency, but is not doing this very OBJ
viously wise thing.
Even though you have heard to
the contrary, your Federal Govern
ment is not decreasing its monde
fense spending but is continuing to
spend in the same reckless and ex-
travagant way that has placed upon
you the huge public debt which
now constitutes a first mortgage on
the property of every citizen of our
Republic.
No Actual Reduction.
The budget submitted by the
President to the Congress in jan
uary embodied no actual reduction
in non-defense spending, although
by changing the totals in classif1-
cations the impression was con-