Evening star., 1949-07-16

900 900 of new taxes and continued to do
so until about 10 days ago. He did SO at
time when the business recession was just
beginning He now says that new taxes
would accelerate the business decline
something that other Senator's and l have
been saying for six months.
He now proposes frankly to embrace
long-range program Of deficit spending for
the purpose of stimulating the purchasing
power of the people. In one breath he
denies that a depression is impending, and.
in the next, he says that deficit spending
is necessary to avoid depression.
The plain and stark truth is that II We.
at time of high prosperity deliberately
embark on a program Of deficit spending,
1t is doubtful-very doubtful-that the
budget of the United States Government
will ever be balanced until our fiscal system
is destroyed and we undergo the terrific
hardships of the re-establishment Of SOL
vent currency.
Spending More and More
There is one thing the President has been
consistent about, and that is to spend more
and more money. He has never made
recommendation to the Congress OF the
United States for retrenchment. He has
never made even the slightest effort to elimi-
nate the waste and inefhciency that per-
meate every single branch Of the Govern
ment service. He attempted to create the
impression that of the $42 .000. .000. 900 that
is now being spent. $32 900 100000 is un-
touchable. because it is the result of either
past wars or our efforts to prevent future
wars. This statement is not correct, because
the only really untouchable item in Federal
spending is the interest on the public debt,
which is now approximately $500, ,000, 900
a year. and Of all the other part of the
$36500. 100000 we are now spending, bill
lions and billions Of dollars can be saved
by efficiency and economy without impair
ing the essential functions for which these
expenditures are made.
current example of this is the fact that
today the armed services have 898, 900 civil
ian employees, which means that we have
one civilian employe for every two in uni
form. At least from 81 ,000, 100000 to
$4,000, 900 900 could be saved In the admin
istration of our armed forces. We have
today in our Government service 100000
Federal employees as compared to 5000
before the war. For the past 1s months we
have been adding more than 800 employees.
payroll each day. If those added inside
the continental United States during this
period will be q net permanent increase.
1t means that annual Federal personnel
costs have been increased at the rate of
100000 day.
Sees Nothing But Increases.
It is well for the public to know what
the President has in mind. Not only does
he propose to continue the present expendi-
lures Of approximately $4,000, 900 900, and
to oppose with all the power Of his great
Office any reduction in these expenditures.
regardless Of how large the resulting deficit
may be, but he wants to embark on new
ventures which will add many billions of
do1lors mora IN fhA aYnapdif1,res WA nouu
have.
The President offers more public spend
ing as the panacea for recession or depres-
sion. He offered the same panacea in Janu-
ary as the only panacea for imitation. The
only difference Is he wants more Of the
same.
II the President is successful in plungingt
this country into q new indefinite era OF
peacetime deficit spending, which will be
greatly in excess Of any deficit spending be-
fore. the inevitable result will be IMPAIR
ment of the solvency of the American dol
lar. which. If 1t should occur. will be>a dis
aster Of the first magnitude. not only to the
people of America but to all the world. We
may 60 along the road that England has
gone-to socialism and a welfare state-as
so ably predicted by former Secretary of
State BWnes.
Heretofore. the President has opposed in
fation, but now he favors o program of def
cit spending. which will start the fires of
imitation such as nothing else will do. There
is nothing 80 inflationary IS borrowing
money and spending 1t for public purposes.
Let us not forget that when deficit spend
ing was started in 1882 We had q debt Of
$4,000, 100000. Now deficit spending>m must
be pyramided on q debt Of 1852 600, 900 900.
Let us remember, too. that the additional
public spending recommended by the Presi-'
dent must be pyramided on the present
spending of $4,000, 000. 900. as compared to
war.
Fears Only Governments Part.
agree with the President that there Is
no reason for a depression of such conse-
quence as to create a real finance crisis,
unless the Government itself precipitates
that crisis. It can be precipitated by tax
ing declining economy, as the President
asked the Congress to do last January. It
can be precipitated by a lack of confidence
in the future. If businessmen believe that
the Government has thrown all discretion
to the winds and Is embarking on q gigan-
tic plan Of deficit spending for the pur-
pose of maintaining a very high level OF
national prosperity.
What we need in America now, above
everything else, is to give confidence to the
businessmen Of this country so that the
business activity can be restored and extend
ed by the customary means Of Investments
made in the free private enterprise system.
Pump priming by deficit spending will never
take the place of normal business activity
under the free e-enterprise system
We have great responsibility in America
today. If the American dollar goes down.
the whole world will 60 back to an age Of
darkness The American dollar Is the only
standard Of money value that the entire
world has confidence in.
Even though the new spending plans OF
the President are not approved, In the
fiscal year which began July we win have
q deficit Of approximately $4,000, 900 900,
unless the Congress at present In session
drastically reduces appropriation bills now
passed and pending. In the hscal year 1881.
LII. lsa