Evening star., 1942-01-07
part of our war effort to maintain

the same way it is necessary In war
time to conserve our natural re-
sources and keep in repair our ma
tional plant. We cannot afford waste
or destruction, for we must continue
to think of the good of future gen.
erations of Americans. For example,
we must maintain fire protection in
our forests, and we must maintain
control over destructive floods. III
the preparation Of the present
budget expenditures not directly re-
lated to the war have been reduced
to minimum or reoriented to the
war program.
We all know that the war will
bring hardships and require adjust
ment. Assisting those who suffer in
the process of transformation and
taxing those who benefit from the
war are integral parts Of our ma
tional program.
1t is estimated that expenditures
for the major Federal assistance
programs-farm aid, work reliei
youth aid-can be reduced by 600
million dollars from the previous
to the current fiscal year, and again
by $50 million dollars from the cur
rent to the next fiscal year. These
programs will require IA billion dol
lars during the fiscal year 1943. about
one-half of the expenditures for
these purposes during the fiscal year
1941.
Improved economic conditions
during the current year have made
possible the execution of economic
and social programs with smaller
funds than were originally esti-
mated. BY using methods of ad-
mlnlstrative budget control AIS
million dollars of appropriations for
civil purpose have been placed in re-
serves.
Excluding debt charges and grants
under the Social Security law, total
expenditures for other than direct
war purposes have been reduced by
Slightly more than / billion dollars
in the next fiscal year.
Agricultural add propose to in
clude contract authorize tions in the
budget to assure the farmer a parity
return on his 1912 crop. largely pay
able in the fiscal year 1914. do not
suggest definite appropriation at
this time because developments Of
farm income and farm prices are too
uncertain. Agricultural incomes and
prices have increased and we hope
to limit the price rise of the products
actually bought by the farmer. But
If price developments should turn
against the farmer. an appropriation
will be needed to carry out the parity
objective of the Agricultural Adjust
ment Act.
Proposes to Continue
Soil Conservation.
The remaining expenditures for
the agricultural program are being
brought into accord with the war
effort. Food is an essential war ma
terial. propose to continue the soil
conservation and use program on a
moderately reduced scale. Acreage
control by cooperative efforts of
farmer and Government was in
augurated in period of overproduc-
ton in almost all lines of farming
Then its major objective was the
curtailment of production to halt a
catastrophe decline in farm prices.
At present, although there Is still
excess production in some types of
/ farming, serious shortages prevail
in other types. The present program
is designed to facilitate a balanced
increase in production and to aid in
controlling prices.
Work projects-The average num-
Der of w. P. A. workers was two mil
I lion in the fiscal year 1910. the year
before the defense program started;
the average has been cut to one mil
! lion this year. With increasing en-
ployment a further considerable re-
duction will be possible. I believe
it will be necessary to make some
provision for work relief during the
next year. I estimate tentatively
that 465 million dollars will be
needed for w. P. A., but I shall sub
NIT a specific request later in the
year Workers of certain types and
in certain regions of the country
probably will not all be absorbed by
war industries. 1t is better to pro-
vide useful work for the unemployed
on public projects than to lose
their productive power through idle
ness Wherever feasible they will be
employed on war projects.
c. c. c. and n. Y. A. Programs
Will Be Reduced.
Material shortages are creating
the problem of priority unemploy-
ment" I hope the workers affected
will be re-employed by expanding
war industries before their unem-
ployment compensation ceases.
Some of the workers affected will
not, however, be eligible for such
compensation and may be in need
of assistance.
! Rather than rely on relief, a de-
termined effort should be made to
speed up Unemployment in defense
plants. have. therefore, instructed
the Office of Production Manage
ment to join the procurement
agencies in an effort to place con-
tracts with those industries forced
to cut their peacetime production.
The ingenuity of American man.
agement has already adapted some
industries to war production. Stand
ardzation and substitution are do
ing their part in maintaining pro-
duction. Ever-increasing use of
subcontractS. pooling of industrial
resources and wider distribution OF
contracts are of paramount i'm
portance for making the fullest use
of our resources. The newly ma
tionalized Employment Service will
greatly help unemployed workers in
obtaining employment.
Aids to youth-Under war condi-
tions there is need and opportunity
for youth to serve in many ways. It
is therefore possible to make con-
siderable reduction in the programs
of the Civilian Conservation Corps
and the National Youth AdminiStra-
ton. The youth. too, will be aided
by the United States Employment
Service in finding employment op-
portunitieS