The Wilmington morning star., 1947-04-06

from men who had little conf
dence in our American system of
free enterprise.
They were wrong in their pre-
dictions. They were wrong be-
cause they do not understand the
strength Of our system Of free
competitive enterprise. Under
that system, each man is free to
go where he likes. to follow the
calling of his choice, and to be
rewarded in proportion to the
productivity of the effort or the
property he contributes In so far
as we insure that each Individual
has e opportunity and induce
ment to make the largest contri-
button he a to this country's
total production, we not only
strengthen our nation against any
possible entertainments, but we
also set an example to all other
peoples of the ~desirability of free
government in the economic a S
well as the political sense.
Our country's financial stamina
was tested in the recent val as
it had never been tested before.
But in spite of the tremendous
cost Of the war, we emerged with
our financial leadership in the &C.
onomic world greater than ever
before. Beyond making our best
effort to eliminate waste in the
conduct of the war, the cost of
the war was not a matter within
our power to control. We emerged
bearing a burden of debt, e D.
resenting that cost, d we do
with that burden is a question of
tremendous import. But fortu-
nately it is a question that we
have the power to decide for our
selves.
The first decision that we made
to reduce federal government
spending as quickly as possible.
The extent of retrenchments by
the government is shown by the
record.
In the fiscal year 1945 the
Federal government spent $780,
900, 900, 900. In 1916 we cut ex-
penditures to 1854, 900, 900, 900. In
1947 We have further reduced ex-
penditures to an estimated figure
of $40, 900, 900, 600. The budget FOR
the next fiscal year, which I have
sent to the Congress-, totals $37,-
500, 600, 600.
Not only have we greatly re-
duced expenditures, but we have
made tremendous progress to-
ward the elimination of deficits.
In the fiscal year 1915, the Fed
eral government had a deficit of
over $50, 900, 900, 900. In the fiscal
year 1916 it was in the red by
about $21, 900, 900, 900. But now we
have worked our way into the
black, and I am happy to be able
to say tonight that for the present
fiscal year 1947 we shall balance
the budget and we shall have a
surplus.
I am determined that stringent
economy shall govern all peace
time operations of the govern
ment.
When the several departments
and agencies were called upon, a
few months ago, to submit their
requests for funds for the coming
fiscal year, they were told of my
determination.
They responded by eliminating
many of their former activities.
This was not enough. When the
estimates were in, I went owe
them, making further substantial
reductions. When l finished, these
department estimates had been re-
duced by a total of some seven bill
lion dollars under their original
I was warned by some that 1 was
going too far. | was aware OF the
risk. But I was aware, too, OF the
greater risk of a weakened post
var financial structure. l knew
that in the public interest, sacri-
of some government services
had to be made.
The result was a budget OF ST.
500. 600. 900. That figure marked the
borderline beyond which we could
not reduce the activities OF our
government without entering the
of false economy. In other
words. further so-called "econo-
would not have been econo-
mics at all. They would merely
have meant curtailment OF services
that would cost our taxpayers-au
taxpayers-more than the reduc-
ton in cost that appeared on the
surface. ..
You, my felow-citizens. are prop
erlv cautious of false economy IN
daily lives. If the foundation
of YOUR house needs repair, or II
the roof leaks, you know that you
are wasting money, not saving IT,
falling to make that repair.
So with government. If we aban.
don our work of reclamation, OF
soil conservation, Of preserving our
forests, of developing our water re-
urc we are wasting money
not saving it. If we cease our VIZ
lance along the borders OF u
trv and at our ports OF entry we
are wasting money, not saving H.
If we falsely economic by reduc-
ine the staff Of men and ONE
who audit tax returns, or VINO m
crease the country's productivity
Nv settling labor disputes, we are re
va sting money, not saving II. IL
we cut down the effectiveness Oh
o,ir armed forces, we run the FISK
~ wasting both money ana l.Vss,
u Anv substantial reduction OF tne
,o48 federal budget, as suonlis.su
to to7t the Congress, must be clearly
Understood by the American peop1e
~ a venture into false
70 the extent that we countenance
INV such reduction, we $40
,leaken our own house by our re-