Evening star., 1947-04-06

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|curtailnlent of services that would
lcost our taxpayers-all taxpayers
more than the reduction In cost that
appeared on the surface. 3ass,
You, my fellow citizens. are pro-
lperly cautious of false economy In
your daily lives. II the foundation
Iof your house needs repair. or II the
roof leaks, you know that you are
wasting money. not saving 1t, by
failing to make that repair.
So with Government, II we aban-
don our work OF reclamation. Of soil
conservation, OF preserving our
forests, Of developing our water re-
sources, we are wasting money, not
Saving 1t. II we cease our vigilance
along the borders OF our country and
at our ports OF entry. we are wasting
money. not saving It, II we falsely
leconomize by reducing the staff OF
men and women who audit tax ne
turns, or who increase the country's
productivity by settling labor dis
putes, We are wasting money, not
saving 1t. If We cut down the et1ec-
tiveness OF our armed forces, we run
the risk OF wasting both money and
| lives.
Any substantial reduction OF the
1948 Federal budget. as submitted to
the Congress. must be clearly under
stood by he American people as a
venture into false economy. To the
extent that we countenance any such
reduction, we shall weaken our own
house by our refusal to keep 1t In
basic repair. At best, this IL poor
judgment. At worst. 1t Is an invita-
|tion to disaster.
Problem Of Public Debt.
The second decision we must make,
affecting the strength ant health of
our economy, concerns the public
debt. We must resolve to begin the
long process of reducing that debt,
which represents a large part Of the
cost of winning World War II. That
debt amounts to almost $4,000 for
every man, woman and child in the
United States.
In deciding whether we shall start
substantial payment on the debt, or
whether We shall reduce taxes in
stead, we are deciding q question
which will affect the future of every
one Of us. Our decision will affect
the number OF jobs In the future, the
wages men and women will earn,
what those wages will buy. and how
much our savings, our insurance and
our bonds will be worth.
We, as a nation, are now having
prosperous years. This is the time
when we must start paying of the
debt in earnest. When man is
earning good wages, and at the, same
time owes a lot Of money, he is wise
If he uses his excess income to pay
of his debts. He would be short
sighted If he cut his income just be-
cause he was not spending it all at
the moment. When the people,
through their Government owe lot
of money-as we do today--it is the
course Of wisdom to make payment
on our debt. 1t would be extreme
ly shortsighted to cut down the Fed
eral revenue without making q real
effort toward debt reduction.
I recognize, frankly, that the pres
ent burden of taxation on our people
Is too heavy to be considered as per-
manent. and at a proper time will
support tax reduction and tax read
justment designed to reduce the
burden and to adjust that burden
to the needs of a peacetime economy
Concerned Over Price Level.
In further eyaluating the strength
of our domestic economy, ! must ex-1
press to you my deep concern over
the level of prices prevailing today.
A system of free enterprise does not