Evening star., 1947-04-06

upon us today this Nation must be
strong. A strong United States
means q country that maintains a
military power commensurate with
its responsibilities. It means a
country Of sound domestic economy.
It means . country that holds Its
place In the forefront OF industrial
production and continues its leader
ship in creating the techniques Of
abundance. And II means, most Of
all, q strong. united, confident
people, clear In the knowledge OF
their country's destiny, mistaken
and unshakable in their resolve to
live in 4 world Of free peoples at
peace.
No matter how great our military
potential may be, military potential
alone Is not enough. IT is necessary
that we maintain sufiicient military
strength to convince the world that
We intend to meet our response
bilities.
Now, what of our domestic econ
onyq How strong are We at home?
AS we appraise our domestic
scene - our mighty array Of fac
tories, mines. farms, producing at
or near capacity. and with employ
ment al an all-time high our
doubts, Ii we had any. are put to
rest. We are viewing a panorama
Of prosperity y-such prosperity as no
generation of Americans before us
ever experienced.
Calamity Predictions Wrong.
) You may recall hearing dire pre-
dictions. in the last year and a
Interpretations that the United
States was heading into an economic
crack-up. predictions Of glutted
markets, Of great defiationary
plunge. 1t is significant that the
most pessimistic cries of calamity
came from men who had little con-
fidence in our American system of
free enterprise.
They were wrong in their predic-
tions. They were wrong because
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. Insofar as
we insure that each individual has
the opportunity and inducement to
make the largest contribution he
can to this country's total produc-
ton, we not only strengthen our
nation against any possible en-
croachments. but we also set an
example to all other peoples of the
desirability of free government in
the economic as well as the political
sense.
Our country's financial stamina
was tested in the recent war as 1t
had never been tested before. But
in spite of the tremendous cost of
the war, we emerged with our finan-
cial leadership in the economic
world greater than ever before. Be
yond making our best effort to elm
mate waste in the conduct of the
war, the cost OF the war was not
a matter within our power to con-
troll. We emerged bearing burden
Of debt, representing that cost, and
what we do with that burden is
question of tremendous import, but
fortunately it is a question that we
have the power to decide for our
selves.
The first decision that we made
was to reduce Federal Government
spending as quickly as possible.
The extent Of retrenchments by
the Government is shown by the.
record. E sa
Progress Against Deficits.
In the fiscal year 1945 the Federal
Government spent 100000, 900 900.
In 1916 we cut expenditures to $64,-
600, 900 600. In 1947 we have further
reduced expenditures to an esti-
mated figure of 42,0O0, ,0oo, 900. The
budget for the, next fiscal year,
which I have sent to the Congress-
totals $37, 500 900 900. : * 3.
Not only have we greatly reduced
expenditures, but we have made tre-
mendous progress toward the elimi-
nation of deficits.
In the fiscal year 1945, the Fed
eral Government had a deficit of
over $53,0O0,000,0Oo In the fiscal
year 1916 1t was in the red by about
$21 ,000, 900 900. But now we have
worked our way into the black, and
I am happy to be able to say to-
night that for the present fiscal
year 1947 we shall balance the
budget and we shall have a sur
plus.
I am determined that stringent