Evening star., 1941-12-26
La Toilette Opposes
S1,131,o75,ooo Cut
In Non-War Outlay
George Says U. S. Must
Borrow Two-Thirds of
Cost Of Conflict

Borrow Two Thirds Of
Cost Of Conflict
By the Associated Press.
In a sharply critical minority re-
port, Senator La Toilette, Progress
sive, OF Wisconsin, charged today
that the Joint Economy Committees
recommendation for a l,13l ,075 900
cut in non-defense spending was
"hasty and unwarranted."
Senator La Toilette asserted that
committee suggestions for the aboli-
ton of the Civilian Conservation
Corps, the National Youth Admins
tration and the Farm Security Ad-
ministration would knock some of
the major props of Federal support
out from under our social structure
in the lower income levels" He
alone signed the report.
Earlier Chairman George of the
Senate Finance Committee had eX-
pressed the opinion that the United
States would be lucky if it could
finance one-third Of the cost of its
war with the axis out of current
revenues, despite projected tax in
creases.
Charging that the proposed cuts
would come at time when ma
tional unity requires maintenance
of high morale among ''the unfortu-
nate one-third of our population
which has just cause for dissatisfac-
ton with an economic and social
system that has treated them shah
billy" Senator La Toilette said it
was estimated that II per cent of
the value of military contracts had
been placed in II States. He said
this threatened many communities
with more distress than ever before.
George Opposes Drastic Taxes.
Senator George told reporters that
the 81 ,131 ,075,0O0 cut recommended
yesterday for non-defense expend-
itures, coupled with such new taxes
as Congress may vote in 1912, still
would leave the budget far out Of
balance.
He said that as war outlays in
creased the scale of Government
borrowing would have to rise, since
too drastic taxation might choke of
the flow of essential fighting equip
ment.
IF we finally wind up by financing
one third the cost Of the war out
OF current revenues. we will have
done well" Senator George declared.
He emphasized that so far as he was
concerned no wild schemes" of
taxation would be tried in an effort
to bring revenues above that level.
Spending Estimates Revised.
Reports have been current that
before the Japanese attacked Pearl
Harbor, the Treasury had calculated
Government spending would reach
| $1,000 100000 a month during the
/ fiscal year beginning next July !.
I Since then. this projected outlay
Of s36 900 900 900 year was under
stood to have been revised upward
to the point where experts said it
was likely to go far beyond $40
600 900, 900.
While Senator George said he had
no information on the total of pro-
jected outlays, he estimated that
current taxes would raise approx
mately $1,000 900 900 in the next
fiscal year Added to this may be
$4,000 900 900 or S. 900 100000 in new
levies the Treasury is expected to
recommend soon.
At the same time, he predicted
that routine non-defense spending
could be reduced at least 81 500 00o,-
900 yearly. This would be in line
with the recommendation sub
mitted yesterday by the Joint Con-
gressional Economy Committee, of
which Senator Byrd is chairman.
In its report. the committee
recommended cash savings of S1,l31.-
0750O under present operating costs
and cancellation of s170,000000 in
potential loans by Federal agencies.
The committee recommended that
s400, 100000 be cut of w. P. A funds,
s246 100000 be saved by abolishing
the Civilian Conservation Corps and
SOL 767 900 by abolishing the National
Youth Administration.
Other major projected cash saw
ings included 100000 from agri-
cultural export funds, $500 900 by
abolition of the Farm Security Ad-
ministration s6400O,o0O by defer
ment of one-half the public roads
program. $4,000 900 in department
overhead expenses and s43,l64,000 in
non defense buildings.
Observing that there was mo
room for non-essentials in a Gov
ernment stripped for action" the
committee said in its report that
amounts spent in defense activities
soon would be so large as to obviate
the necessity for relief and other
items.
1t said also that later it intended
to review defense expenditures and
make recommendations for the
elimination of waste and inefficiency
in administration
The committee submitted this
table of proposed reductions:
Civilian Conservation Corps (abol-
ished), s246, 100000.
National Youth Administration
non-defense activities, abolished +,
$91 ,767 900.
Works Projects Administration
(present appropriation, $875 900 900
per Year,, $400 900 900.
Agriculture:
Deferment of land purchases, $3,.
900 0,000
Savings on overhead expenses,
$50 .000, 900.
Reduction in appropriation for
expectation and domestic consump-
ton of agricultural commodities,
500, 100000.
Farm tenant program (abolished,