Evening star., 1942-01-07
Program Of Spending
Based Entirely on
Wartime Demands

New Tax Proposals
Would Ruise Added
s., 1000, 900, 900
The tert OF the Presidents
budget message to Congress to-
day tollo,Ds:
r AM submitting herewith the
budget OF the United States for
the fiscal year ending June 80,
L 1943. 1t is the budget Of a ma
ton at war in a world at war.
In practical terms the budget
meets the challenge Of the Axis
powers. We must provide the funds
to man and equip our fighting
forces. We must provide the funds
for the organization Of our re-
sources. We must provide the funds
to continue our role as the arsenal
Of democracy.
Powerful enemies must be out
fought and outproduced. Victory
depends on the courage, skill and
devotion Of the men in the Amer
lean, British, Russian. Chinese and
Dutch forces, and of the others who
toin hands with us in the fight for
freedom. But victory also depends
upon efforts behind the lines-in
the mines, In the shops, on the
farms.
We cannot Outright our enemies
unless. at the same time, We outpro-
duce our enemies. 1t is not enough
to turn out just few more planes,
a few more tanks, a few more guns.
a few more ships. than can be turned
out by our enemies. We must out
produce them overwhelmingly, so
that there can be no question of
our ability to provide crushing
superiority of equipment in any
theater OF the world war.
And we shall succeed. A system Of
free enterprise is more effective
than an order" of concentration
camps. The struggle for liberty first
made us a Nation. The vitality.
strength and adaptability OF social
order built on freedom and individ-
ual responsibility will again triumph.
Fiscal Measures Essential
In Nations War Program.
Our present war program was pre-
ceded by a defense effort which
began as we emerged from the long
depression. During the past 18
months We laid the foundation for
a huge armament program. At the
same time industry provided ample
consumers goods for a rapidly grow
ing number of workers. Hundreds
of thousands of new homes were
constructed; the production of con-
sumers' durable goods broke all rec
ords. The industrial plant and
equipment of the country were over
hauled and expanded.
Adjustment to war program can
now be made with greater speed and
less hardship. The country is bet
ter stocked with durable goods. Our
factories are better equipped to carry
the new production load. The larger
national income facilitates financing
the war effort
There are still unused resources
for agricultural and industrial pro-
duction. These must be drawn into
the national effort. Shortages, how
ever, have developed in skilled labor,
raw materials, machines and ship
ping. Under the expanding war
program, more and more productive
capacity must be shifted from
peacetime to wartime work.
Last year fiscal policy was used
to shift the economy into high gear.
Today it is an instrument for trans
forming our peace economy into
war economy. This transformation
must be completed with minimum
friction and maximum speed The
fiscal measures which I outline in
this message are essential elements
in the Nations war program.
Asks War Appropriation
OF 1876 Billion Dollars.
This is a war budget. The details
of a war program are, Of course, in
constant flux. Its magnitude and
composition depend on events at the
battle fronts of the world. on naval
engagements at sea, and on new
developments in mechanical war
fare. Moreover, war plans are mill
tary secrets.
Under these circumstances I can
not hereafter present details Of fu-
ture war appropriations. However,
total appropriations and expendi-
lures will be published so that the
public may know the fiscal situa-
ton and the progress OF the Ma
tion's effort.
The defense program, including
appropriations, contract authorize
tions, recommendations, and COM
mitments of Government corpora
tions, was 20 billion dollars on Janu-
ary 8, 1941. During the last II
months As billion dollars have been
added to the program. OF this total
of rs billion dollars there remains "a
billion dollars for future obligation
LII tillS DuuSSG 1 ludhc du 1llllldi
request for war appropriation OF
1876 billion dollars for the fiscal year
1943. Large supplemental requests
will be made as we move toward the
maximum use of productive capac-
ity. Nothing short Of a maximum
will suffice. I cannot predict ulti-
mate costs because I cannot pre-
dict the changing fortunes Of war
I can only say that we are deter
mined to pay whatever price we
must to preserve our way Of life.
We Are Determined to Hold
Waste to q Minimum.
Total war expenditures are now
running at rate of billion dollars
a month and may surpass 5 billion
dollars a month during the fiscal
year 1943. AS against probable
budgetary war expenditures of "a
billion dollars for the current fiscal
year. our present objective calls for
war expenditures of nearly SO billion
dollars for the fiscal year 1943 And
in addition. net outlays OF Govern
ment corporations for war purposes
are estimated at about and billion
dollars for the current and the next
-