Evening star., 1943-01-11
Congress Given Record Budqet;
Is Billion in New Toxes Asked:
RutIedge Named to High Court
Demands Of War
ToCurtuiI CiviIiun
Supplies Is Per Cent
(Tert OF Budget Message on
Page A-6.
By GARRETT d. HORNER.

- -
New taxes or compulsory saw
ings to raise an additional $16,-
00O, ,000, 900 a year were proposed
to Congress today by President
Roosevelt in submitting a total
war" budget calling for nearly
$109, 900, ,000,0 in Federal ex-
penditures during the 1914 fiscal
year beginning next July l.
The Chief Executive described the
budget, which estimated the costs Of
direct war activities In the coming
fiscal year at 500, ,693, 900 900, as pre-
senting "the maximum program for
waging war" and declared that ef-
fects of such a program necessarily
"must be harsh"
With the Nations entire pro-
ductive capacity geared to the war
effort, he said, civilians can be sup
piled with an average of only about
$500 worth Of goods and services
during the II months beginning
July Implying "an average reduc-
ton of almost IS per cent in civilian
consumption below the record level
Of the calendar year 194l."
Details Up to Congress-
Mr.. Roosevelt left up to Congress
the details of how the proposed
$4,000, 900 900 In additional revenue
should be raised, emphasizing q twin
objective Of putting war costs on an
approximately so per cent pay-as-
you-go basis and helping to prevent
imitation by draining of excess pur-
chasing power.
IT believe that we should strive to
collect not less than SIG, ,00, 900 900 of
additional funds by taxation, saw
1ngs, or both, during the fiscal year
1914" he said.
At seminar" press conference,
the President explained to ques-
tioners that his reference to "sav-
ings" meant enforced or compulsory
savings through legislation-in the
form of taxes that would be re-
turned to the taxpayer over a period
of years after the war-and not such
saving measures as voluntary pur-
chase of War bonds.
He declined to specify, however,
what proportion OF the additional
revenue should be obtained through
outright taxes and how much
through what Budget Director Har-
old D. Smith referred to as re
fundable taxes" This is matter
for Congress to decide in enacting
revenue legislation, the President
said. He did urge that collections
be put "as far as feasible on a pay
as-you-go basis"
Non-War Expenditures.
In addition to direct war costs,
Mr.. Roosevelt's estimates of Federal
expenditures included s4,128.924, ,923
for other Government activities;
$1,000 900 900 for interest on the pub
lie debt, and $2,081, ,123, 900 for ordi-
nary expenditures of the RFC and
other Government corporations,
making a total of $108, ,902, ,047 1923.
The war spending program
dwarted anything in history and
represented more than the annual
money expenditures of all the other
beligerents on both sides OF the
war put together. It was nearly
three times what Germany Is spend
ing, four times England, and IA
times Japan.
Mr., Roosevelt estimated Americas
war cost in the current fiscal year
at about SIT ,O00, 900, 900. Add to that
approximately 100000, 900. 600 esti-
mated for the next II months, and
another $4,000, 10000 spent be-
tween Pearl Harbor and the begin
ming of the current year, and the
American war bill between Decem-
Der 7, 1941, and June 30, 1914, will
be $196, 1000 900 ,0O0-just $1,000, ,00O,-
900 short of all the money spent by
the Treasury from the day George
Washington was inaugurated in
1889 until the Japs attacked Pearl
Harbor.
The Presidents message accom-
panying his budget estimates went
to unusual lengths In explaining
the program he considers necessary
for victory and carried forward the
conciliatory tone adopted in his
message last week on the state OF
Nation.
Offers His Cooperation.
He said he would be glad to CO.
operate" with Congress in reducing
'non-war" expenditures further
pointing out they had been reduced
by 36.7 per cent since 1939-and
appealed for unity in making eco
nomic stabilization, manpower mo-
bilization and other measures effec-
tive.
Declaring that the huge expendi-
ture program reflects q gigantic ma
tional EFFORT to pass the ammuni-
tion," Mr.. Roosevelt said his reply
to those who might believe it fan
tastic 'is that this program Is
feasible"
1T makes possible" he added, "the
expansion of our armed forces nee
essary to offensive operations, the
production Of planes and munitions
to provide unquestioned superiority
and the construction of ships will
make 1t possible for us to strike at
the enemy wherever he may be '''
"If the Nations manpower and
resources are fully harnessed, I am
confident that the objective Of this
program can be reached, but it re-
quires a complete recognition Of the
necessities Of total war by all
management, labor, farmers, con-
sumers and public servants-regard-
less of party.
Production shorl Of these military
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