The Omaha guide., 1948-05-08
OUR GUEST COLUMN
CAPITAL COMMENT
Continued from Page One

OF which he disapproveS. For
example he held up funds for
military aid for Greece for SO
long that the aid came too late
to permit real action there un-
til winter. This caused more
funds to be required.
Taber's showdown on ERP
brought from a leading nation
al newspaper, The New York
Times, this tart observation
These need (under ERP)
have been studied for the past
ten months BY greater state
men than Mr.. Taber, and we
elbieve that the country can
well dispense with his particu-
lar brand of craftsmanship now.
But despite Taber's slowdo-
wn, the ERP was put into eff
feet Immediately with emerg-
ency funds from the RFC.
And despite some disunity at
home, the Presidents patient
leadership on foreign policy
had resulted in a great step
forward on the road toward
peace.
And we had showed the wor-
Id that its greatest democracy
could act promptly-and I'm
would move us toward world
peace.
Traditionally it is not good
politics" to veto a tax reduct-
ion in an election year, regard
less Of the merits Of the case
for such reductions.
But President Truman scor-
ned politics as usual consid-
erations in his tax reduction
veto message sent to the Con-
gress on April End.
He was convinced that the
sort Of tax reduction passed by
Congress was against the well
fare of the Nation and he SO
stated in plain firm language.
President Truman's tax veto
message showed him clearly a
President who puts the count
rvs first, so-called political
strategy" last, when he faces
up to a national problem.
Capital Comment believes
you will have many occasions
to cite the Presidents tax mes
sage in the days ahead and sug-
gests that you keep handy the
following extracts from the
message:
"... If l could conscientiou
sly approve tax reductions, |
would gladly do so. But | am
convinced that to reduce the
! income Of the government by
SIS billion at this time would
exhibit a reckless disregard for
the soundness of uor economy |
and the finances of our govern
ment.
my fundamental objection to
the bill is that it would not |
strengthen but instead would
weaken, the United States.
This is true for two reasons.
First, the bill would reduce
Government revenues to such
an extent as to make likely a
deficit in Government finances,
at a time when responsible con
duct of the financial affairs of.
this Nation requires a substan-
tial surplus in order to reduce
our large public debt and be
reasonably prepared against
contingencies.
Second, the bill would great
ly increase the danger Of fur
Their initiation, by adding billi-
ons Of dollars Of purchasing
power at atime when demand
already exceeds supply at ma
ny strategic points in the econ
omy, when Government expen-
ditures are necessarily rising.
THE estimates Of govern
ment expenditures for the fiscal
year 1919 which I submitted
to the Congress in January to-
tailed 1897 billion Receipts
were estimated at $44.5 billion
leaving a surplus Of $4.8 billion
for debt retirement and contin-
gencies.
1T has since become appar-
ent that despite the Host strin-
gent efforts toward economy,
there will be several important
increases in expenditures a.
bove the January estimates.
Legislation has been enacted
increasing payments to veter-
ans. Large amounts will be re
CURED for assistance to certain
foreign countries.
Legislation to increase the
salaries of federal employees is
being considered. 1t has been
necessary to recommend sub
stantial additional appropriat-
ions to the Congress to bring
our armed forces to proper str
ength.
Although these increases,
after taking due account OF
appropriations actions by the
Congress to date and of the
additional tay raf,,,dc which