Evening star., 1943-04-12
By the Associated Press.

B, the Associated Press.
TeIt OF President Rooseuelts
statement OF, the Public Debt Act
OF 1943 tolioUs:
The Public Debt Act of 1943 is
before me for signature. This bill
increases the limitation on the face
amount of obligations issued under
the Second Liberty Bond Act that
may be outstanding at any one
time from $125 ,000, 900 900 to $780,
O00,O0O,0O0
I pointed out the need for this
increase in my budget message on
January 6. A bill to authorize the
increase was introduced in the
House Of Representatives on jan
uary 25 by Chairman Doughton of
the Ways and Means Committee.
The Treasury informed the Ways
and Means Committee that the
present debt limit would be in
sufficient to cover the necessary
bond issues which would be required
during the month of April
The Treasury has advised me
that to permit the execution of its
war financing plans the Public Debt
Act must become effective without
further delay. 1 am accordingly
allowing the bill to become law
without my signature, in order to
avoid embarrassment to our war
financing program.
Circumstances Prevent Veto.
II the circumstances were other
wise. should veto the bill Even so,
I cannot permit this legislation to
become effective without register
ing my protest against the attach
ment to this bill of an irrelevant
and unwarranted rider.
There was attached to this bill
in the House provision which
would have taken from the Presi-
dent the right to stabilize salaries
until they were raised above $4,000,
or the annual rate paid on Decem-
ber 7, 1941. whichever was the
greater. This rider would have de-
stroyed the entire sterilization pro-
gram. 1t would obviously have been
unfair to stabilize wages, and yet
leave salaries free to rise to $67,2O0
This patiently indefensible provi-
sion was eliminated in the Senate.
But instead of dropping it altogether,
the Senate substituted a provision
removing from the act of October 2,
1912. the Presidents authority,
granted in terms by that act to re-
duce wages or salaries Ito the extent
that he finds necessary to correct
gross lnequities and also to aid in
the effective prosecution of the war" "
The effect of this provision. which
was accepted in conference. is to ter
inmate the authority given to and
exercised by me to prevent the pay
ment during the war of salaries in
excess Of $4,000.
Army Draft Cited.
The reasons which prompted me
to exercise the authority conferred
upon me are fully explained in the
letter which I sent to Chairman
Doughton of the Ways and Means
Committee on February Is. A CODY
Of that letter is appended to this
statement. AS I explained in my
letter. I agree with those who say
that the limitation on salaries does
not deal adequately with the prob
lem of excessive incomes. Practical
limitations ought by appropriate
taxation to be placed on all income.
earned and unearned I urged and
would have welcomed special tax
measure applicable to all excessive
incomes, from whatever source de-
rived, in place of the fiat SGT 200 SAL
arv limitation. ...-..
But the Congress has chosen to
rescind my action limiting excessive
salaries without even attempting to
offer a substitute. The result is
that Congress has authorized the
drafting of men into the Army for
$500 year, regardless of whether
they are earning $1,000 or 100000 a
year. but has refused to authorize
the reduction in the salary of any
man not drafted into the Army
no matter how high his income
may be-
All Should Sacrifice,
At the same time the Stabiliza
ton program enacted by the Con-
gress requires wage increases to be
denied to workers earning $500 d
year even when their employers are
willing to pay those wage increases
The essence of stabiliZation is that
each should sacrifice for the benefit
OF all. This principle the Congress
has failed to recognize.
Some 1000 or 5000 persons who
on September IS, 1912, were re-
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