Evening star., 1942-01-07

conference that the Social Security
board is preparing statistical pic
ture of the effect of an increase in
the rates of existing social security
taxes.
In continuing concern over the in
flation menace, Mr.. Roosevelt esti-
mated that public borrowing in the
current fiscal year will approach
$4,000 900 900 and for the l943 span
will come close to s34 900 100000.
To provide this reservoir of private
ernment is banking heavily on dras-
tic curtailment of non-defense eX-
penditures, inforced in large part by
the priorities requirements which
will remove consumers durable
goods from the markets.
Appeals to Consumers.
Although he spoke critically Of
sloWness thus far in enactment Of
price control legislation, the Pres
ident said the condition noted above
will contribute substantially 10
financing the tremendous war effort
without disruptive price rises and
without necessitating a departure
from our low interest rate policy.
The remaining inflationary pressure
| will be large but manageable"
To consumers he appealed directly
for voluntary cooperation.
'Hoarding should be encouraged in
only one field" he said, that of De-
fense savings bonds"
In the face of a three-year in
crease in the public debt from 43
billions in June. 1910. TO 10 billions
in June. 1943 there is, of course.
comparable increase in annual inter-
est requirmntS-from 81 900 O000 900
/ to 50 500 900 900 for the correspond
ing periods.
Such an increase in interest re-
quirements will prevent us for some
/ time after the war from lowering
/ taxes to the extent otherwise pos
I Sible.' he cautioned, but in the
succeeding paragraph there was an
assertion that postwar maintenance
of the national income at the
sl00 900 900 900 level would permit
substantial tax reductions. Presum-
ably there was embodied here
commitment for maintenance OF
Government spending policies in the
postwar period as a means of pre-
venting deflation and depression.
In the non-war categories. eXclud-
ing debt charges and social security
grants, Mr.. Roosevelt paved the way
So ~ -, 1,-l,
ly more than 1,000.000,000 in the
next fiscal year. 1t is within the
power of the Congress. he reminded
his press conference. to effect further
reductions if the legislators so desire.
In the major Federal assistance
programs-farm aid. work relief and
youth aid-he estimated that eX-
penditures for the present fiscal
year will be slashed $500 900 900 be-
low those of 1941. while an additional
$3.50 100000 in savings is anticipated
for 1943. Methods of administrative
budget control already have ac-
counted for S4l50 100000 in savings
this year-a sum which automatical-
~ will be turned back TO the
| Treasury if existent on June 30.
Contract authorizations, without
covering appropriations, were pro-
/ posed for farm parity payments ap-
plicable to 1912 agricultural crops.
/ Continuance of the soil conservation
and use program on a moderately
reduced scale was suggested.
Regarding work relief, Mr.. Roose-
velt pointed out that there had been
an average of 2000000 persons on
the rolls in 1910 with this number
cut in half during the present fiscal
period.
Promises Requests Later.
Anticipating a further consider
able reduction" next year. the Presi-
dent estimated tentatively that
S465, 100000 will be needed for this
program, but said he would submit
a more specific request to Congress
later in the year.
Similarly. he said he was post
poning until spring a specific rec
ommendatiOn on funds for youth
aid. although he estimated that re-
duced programs of the Civilian Con-
seTvation Corps and the National
Youth Administration would require
about Sl00 100000.
Public works is being reduced to
general program of S578,000.00O.
including mainly projects related to
military needs. Federal highway
aid will be limited to construction
essential for strategic purposes. he
promised. and it was indicated that
the priorities powers of S. P. A. B.
will be exercised in cases where
Congress might see fit to make funds
available for projects that have no