Evening star., 1948-08-14
Federal Grants
In Aid 10 States
Blasted by Tuck
Foundations of LocoI
Government Periled,
Court Clerks Told
BY the Assoeio,ed Press


ROANOKE. Va, Aug. 14.-The
continuing practice of Federal
grants-in-aid threatens to destroy
the foundations of local govern
ment, "subjugating the Nation to a
bureaucratic juggernaut," Gov. Tuck
charged last night in an address to
the Virginia Court Clerks Associa-
ton.
Gov. Tuck described the trend to-
ward "paternalistic control author
ity" as a Trojan horse encompass
ing the elements for self-destruc-
ton"
Federal grants-in-aid are based
on two fallacies, he asserted.
The initial fallacy of the entire
theory of Federal aid, he said, is
that the funds can be dispensed
"by a benevolent Government at
Washington with little cost to the
State and local governments or
their citizens. OF course nothing
could be further from the truth"
Says Tolls" Are Exacted.
The Governor pointed out that
whatever the Federal Government
alocates to the States comes from
the people. When it does come back
to the States and the localities in
the form of grants-in-aid, substan-
tial tolls already have been exacted
to maintain and enlarge the bureau
cratic control agencies"
A second major fallacy, Gov. Tuck
added. Ties in the fact that the Fed
eral Government actually has no
funds to dispense. The United States
is laboring under the largest ma
tional debt in its history. BY juggling
it's account books and ignoring the
facts, the Federal Government from
time to time succeeds in deluding
many citizens into the belief that
it is operating on the soundest Of
fiscal principles.
From 1884 to 1910, Federal cum
ulative deficits were $26 ,529 ,000, 900.
During the same period, grants-in-
aid totaled $2l ,259 ,000, ,000-account-
ing for 80 per cent of the deficits
which accrued during that period.
From 1941 through 1916 grants-in-
aid added another $l3,837 900, 900 to
the Federal deficit.
No Hint Of Cut in Grants.
"Thus, current Federal aid pro-
gram not only must be borne by
the American taxpayers, but each
succeeding program adds just that
much to the highly burdensome
carrying charges on the national
debt"
The Governor warned that there
is no indication whatever that
present grants will be lessened, or
proposed new ones defeated, unless
there Is an awakening of the public
to the true picture and the de-
velopment of public demand for
their cessation"
As an example of what he called
"the Federal drain upon the pocket
books of ourselves and our neigh
bors under present conditions" the
Governor stated that for the year
ended December 81, 1947, the with
holding tax on payrolls of State
agencies amounted to $3,540,572.
For the fiscal year beginning
July l, 194S, Federal grants -in-aid
for such activities as game protec-
tion, education in agriculture and
mechanic arts, vocational education,
marketing research, extension work
in agriculture and home economies,
experimental work in agriculture,
industrial rehabilitation, aid to the
blind, and mental hygiene clinics,
are estimated for Virginia at So
943 .952-or $500, $50 less than Fed.
eral withholding taxes on salaries
of State employees for the last call
endar year."
Cites Income Taxes Paid.
The Governor said income taxes
collected by the Federal Govern
ment from Virginians for the fiscal
year 1947 amounted to $l10.520, 1865
for individuals and corporate in
come taxes of sos, ,735 ,S43 for a total
of 5000, ,256, ,7o8.
Individual income tax payments
alone for the period were about
50 ,500,00 more than the total gen.
eral fund appropriations for recur-
ring expenses of the State govern
ment for the biennium ended June
80, 1948, he said.
THE combined total of individual
and corporate income taxes paid to
the Federal Government for the
fiscal year 1947 exceeds by more
than $66.000,000 total general fund
appropriations for recurring expenses
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