Indianapolis Times, Indianapolis, Marion County, 4 January 1940 — Page 5

1 Emergency Request ‘Amaz-|

6. 0. P. FORCES SUSPICIOUS OF EDISON'S PLEA

ing,” Says Vandenberg as It Goes to Committee.

WASHINGTON, Jan. $NU.P)— A Navy proposal that Congress give President Roosevelt broad power to commandeer factories, ships and resources in peacetime emergencies

aroused suspicion and criticism Ze Republican Congressmen toSecretary of the Navy Charles Edison, in a letter to Speaker WilB. Bankhead, asked for renewal of authority granted President WilBo, in 1917, but which expired in

| Appearing before the House Naval Appropriations subcommittee today as it started hearings on the naval supply bill, Mr. Edison declared that his request did not envision the na- | tion’s entry into war but was “Just

. extent of the President's emergency

tine part” of preparedness. Sena Arthur H. Vandenburg R., Mich), said the i was

Vinson Has No Comment

The request was referred to the House Naval Affairs Committee, whose chairman, Carl Vinson, D., Ga), refused to comment. Meanwhile, Rep. John McDowell, LR, Pa.), introduced a resolution in the House that would create a sev-en-man committee to determine the

powers. The United States is now under a proclamation of “limited” national emergency issued by President Roosevelt in September. ‘Rep. Vinson also introduced a ‘bill that would increase by 400,000 tons the authorized composition of underage vessels. It would permit the President tc undertake construction of 200,000 tons of auxillary ships and acquire or construct naval and other aircraft to maintain the number of useful naval planes at 6000 and the number of a a craft at 36. | Espionage May Be Factor Regarding Mr. Edison’s request for| the additional Presidential powers, one member of Mr. Vinson’s committee said he understood | the move was designed to aid in | combating foreign espionage and

defense equipment. {House Minority Leader Joseph W. Martin Jr. (R. Mass.) said that in view of the “sweeping nature of the powers asked, the proposal merits most careful consideration.” Rep. James W. Wadsworth (R. N. Y.) said he would “certainly go very, very slowly before extending any such power to the President. “It is a most unusual request. I never heard of anything parallel to it, and it comes as a complete surprise.”

Proposed ‘Powers Listed

The proposed legislation would authorize the President, in time of {national emergency, to: 11. Order ships or war materials ito meet needs as defined by him. {Compliance with such orders would be obligatory and would take prece{dence over previous orders and contracts. If a manufacturer refused, or failed to give preference, the | President could take possession of ‘the plant. | 2. Modify or ‘orders. 3. Require factories in which ships ior war materials are produced to ‘put their facilities at the disposal lof the President, who would de{termine a reasonable price. : 4. Requisition for the Government {any plants he determines that it

- cancel previous

sabotage in plants producing vital|" °

Partial WASHINGTON, Jan. 4 (U. P.) —The partial text of

President Roosevelt's budget

message follows: ' To the Congress o the United

States: I transmit. herewith the budget of the United States Government

1941. Pstimated expenditures at $8,424,000,000 are down $675,000,000 from the fiscal year 1940. Estimated normal receipts at - $5,548, 000.000 are up $382,000,000 from the fiscal year 1940. Recovery of excess capital funds from Government corporations. is estimated at $700,000,000.. The net deficit is estimated. at $2,176,000,000 as compared with an estimated $3,633,000,000 in the fiscal year 1940. If the tak recommendations totaling $460,000,000 herein made are adopted, the deficit will be further decreased to $1,716,000,000. Appropriations, excluding those] for debt retirement, as distinguished from actual expenditures, are estimated at $8,101,000,000, as contrasted with $8,889,000,000 in the fiscal year 1940.

Review of Fiscal Policy

In the early Thirties—prior to 1933—fiscal policy was exceedingly simple in theory and extraordinarily disastrous in practice. It consisted in trying to keep expenditures as low as possible in the face of shrinking national income. Persistence in this attempt came near to bankrupting both our pe#ple and our Government. . Following 1933 the fiscal policy of the Government was more realistically adopted to the needs of the people. All about. were idle men, idle factories and idle funds, and yet the people were in desperate need of more’ gocds than they had the purchasing power to acquire. The Government delibérately set itself to correct these conditions by borrowing idle funds to put idle men and idle factories to work. This had a profound effect both on Government and on private incomes. Rapid progress was made toward a balanced budget. . * Unfortunately, just at the time when it seemed the Federal Government would be able safely to balance its budget on the basis of a national income of approximately 75 billion dollars, maladjustments in the economic system began to appear and caused a recession in economic activity. ... . In the spring of 1938, I recommended a further use of Government credit and the Congress acted on my recommendation.

The soundness of this realistic approach to a fiscal policy related to economic need was again strikingly demonstrated. . . . By 1939, in terms of dollars, the national income closely approached,- and, in terms of real production and consumption, making allowance for the lower level of prices, was equal to that of 1937. The experience of 1938 - 1939 should remove any doubt as to the effectiveness of .a fiscal policy related to economic need. . In approaching the budget for

the fiscal year 1941 I have sought,

as in the past, to relate fiscal policy to probable economic necessities. . Against this background of aims substantially. but not fully attained, I propose in the field of fiscal policy that we adopt the following course: We should count._upon a natural increase in receipts from . current taxes and a decrease in emergency expenditures, and we should try to offset the unavoidable increase in expenditures for national defense by special tax. receipts, and thus hope to secure, for the over-all picture, a gradual tapering off, rather than an abrupt cessation, of the deficit.

Expenditures

To translate the consideration of the budget from forensics to na-

for the fiscal year. ending June 30,"

tional needs. I submit a summary for

the fiscal year 1941 of approximate

‘ext of 1

Proposed 1 941 Budget

WASHINGTON, Jan. 4 . P.).—Here is the U. 8. budget for the | 1941 fiscal year, beginning next July 1, as submitted by President

Roosevelt: ey

Internal Revenue 4 Railroad Unemployment Customs .......: ag iekennies cash Miscellaneous ; Total Revenues .. Assets Realization ....

Total ‘Receipts .

Net Appropriation for Federal Old-Age Trust: Fund For Comparison, Net Transfers to

Old-Age Reserve Account.......

Net Receipts

EXPENDITURES

Legislative, Judicial, Executive Civil Departments ............... vor General Public Works . National - Defense : Veterans’ ;

‘Youth

EEE EE RE EE NEE NRE ERE] ‘sec vecees

Social Security cesersundetenasnaniate’

Work Relief Refunds Public Debt ‘Interest

Emergency National Defense .......

TOTAL EXPENDITURES EXCESS OF EXPENDITURES

Less: Return of Surplus Funds from

-| Government Corporations Net Deficit Debt Retirement Gross * Deficit

s00c0sis000nsne

se 0000000000000

Agriculture ........... Glen's n . : po - i ) 1,316,841

RECEIPTS

$5,703,795 $5,667,823

169,307 6,008,867 51,802

’ i aD $5,164,823

537,355 $5,166,449

oo seasvoloee

$ 37592 § 35443 . , 993,516 687,694 , 1,359,488 - 550,379

$ 33858 915.600 505,132 1,139,878 | 550,478 1,043 424 368,488 347,257 © 2,612,299 67

; : 308,000 378,378 1,800,923 69,015 1,050,000 208,703

dependent children’ and the blind, as well as ‘veterans’ benefits, railroad retirement benefits, and contributions to Federal employee retirement funds. It does not include insurance benefits: paid out of ‘the gl-age and unemployment trust funds...

“Interest in Public Debt Obviously no ‘reduction in this

wo item ‘can be made in the next. year.

The .average interest rate paid on the public. debt for the fiscal year 1920 was 3.9 per cent. The present complied rate.ds. 2.6 per cent.

Regular Operating

Expenses. This item represents the - basic financial requirements of. the Government. ba

I have carefully ch checked the individual estimates under these broad . | categories and I am’ satisfied that no lower figures can be attained except, at the expense ‘of .impaijring the efficiency with which laws are administered or of . working undue hardship on individuals and economic groups. I refuse to accept the responsibility of adopting either alternative,

Revenue Estimates.

Total tax revenues are estimated at $6,151,000,000. Tax revenues, after deducting appropriations to the oldage security fund, are estimated at

860 $5,548,000,000. .

At various times: in the past as emergencies have arisen, the Federal Government has established

“| eredit corporations and has invested

i 8930383 : "150,307

$9,099,253 $8,707,091

2.876231 3932813

3,932,813 100,000 4,032,813

3,542,267 © 58,245

ANS OF FINANCING DEFICIT

Decrease in Wari Balance .... Borrowings: Replacing Debt Ret Increasing the Public

ment ...

Total Means of Financing.

needs:

National Defense $1,800,000,000 Work Relief Programs. 1,300,000,000 Agricultural . Progral 900,000,000 Public Works and |Investments ....... J... 1,100,000,000 Pensions, Retirements and Assistance ...... 1,200,000,000 Interest on the 3p 1,100,000,000

Debt Regular Operating | . 1,000,000,000 Total $8,400,000,000

These items (first six in above table) amount to estimated expenditures of $7,400,000, and there remains only one other item of $1,000,000,000—12 per cent of the total—for the operating costs of the regular departments of the Government. These are down to the bedrock of the activities and functions: ordered by the. Congress. If further savings are to be made in these operating costs, the Congress will have to direct by statute the elimination of many. functions. : :

expenditures required to. meet these

National Defense

These estimates represent expenditures needed to develop and maintain our normal defense preparations. They also include, in view of the current world situation, the emergency expenditures required for the War and Navy Departments, the Coast Guard, Department of Justice and the Panama Canal. . ..

Work-Relief Programs .". . I'have included the activities of the Work Projects Administration, the National Youth Adminis-

ineeds.

~ Dividends at.

COLONIAL ¥ AGAIN PAYS

A Semi-Annual Payment

+ 4% Per Annu ‘

FAN

BARE BN PAE NN CECT RCRD OT ETN

PRE R EH

Dependent on type and location of real estate loaned on, “Colonial” Variable Interest Rates of 51; 7%—6%—612% and 7%, permit better homes at

a lower overall cost.

Investigate Colonial’ s Home Loan Plans

Get Up to $1000 Mortgage Exemption on Taxes IF. YOU ARE BUYING YOUR HOME ON CONTRACT

« + « and have lowered the purchase price sufficiently, we will make you a‘ loan : with which you can pay off the remainder—~When you do this, you will: lower your monthly: payments to 1% of the loan per month, including both principal and interest.—You Will Get a Deed to Your Home, and be allowed up to $1,000 Mortgage Exemptions on Taxes.

To Do This You Must Act Before March 1st Stop In Today; Before: It Is Too- Late.

“COLONIAL” VARIABLE “INTEREST RATES

On Real Estate Mortgage Loans in Marion County

- PROVIDE GREATER ECONOMY

For Those Who Wish’ to Buy—Build or Remodel

Their. Home

COLONI

_ SAVINGS & LOAN fa CIATION

MEMBER FEDERAL SAVINGS & LOAN INSURANCE CORPORATION

COLONIAL HAS PAID — %— PER ANNUM

DIVIDENDS SINCE 1936

200s

Dept ....... ae

1,150,000

100,000 2,782,813

$4,032,813

2, 978

100,000 . 1,116,231

$2,276,231

58,246 3,280,289

tration, the Civilian Conservation Corps, and the grants of the Farm Secunia Administration. In submitting estimates for these agencies I have taken into consideration the current improvement in business conditions. . . . There is reason to hope that a continued expansion of business would diminish relief requirements substantially. While the estimates are appreciably less than those for the current year, I am hopeful that they will prove adequate. The Work Projects Administration will be able to provide émployment for an average of 1,350,000 persons. The National Youth Administration can employ an average of nearly 600,000 American youths, and the Civilian Conservation Corps will operate 1227 camps and provide for a monthly average of 230,000 enrollees.. The Farm Securify Administration will operate on about 80 per cent of its 1940 level. Relief should be closely geared to actual needs. If conditions fail to meet our hopes additional funds may be necessary. I may, therefore, submit |revised estimates later in the _session.

Agricultural Programs

Under the broad heading of agricultural. programs I have included agricultural adjustment benefits, the surplus removal program and parity payments arising from 1940 appro- * | priations. Despite a gratifying general increase in farm income, agriculture is still not receiving its proper share of the national income. I am, therefore, proposing to continue substantially undiminished the various agricultural programs. I have not, however, included estimates for new appropriations for parity payments in 1941, I am influenced by the hope that next year’s crops can be sold by: their producers for at least 75 per cent of parity. I do not suggest in any way abandonment of the policy of parity payments heretofore adopted, and future events may call for some appropriation to this end. I note, however, in passing, that the Congress has failed to make any provision for the financing of these payments already made or obligated for 1938 and 1939 crops.

Public Works and

Investments

This broad class of expenditure represents the use of Federal capital for investmeht ‘in ‘useful public works, for .ship .comstruction: and ih loans largely for aid to ‘agricul-

While the expenditures for these purposes in 1941 remain: large, a substantial portion of them rises from existing appropriations or takes the - form. - reimbursable

loans. Last’ year, in the Interests ‘of

more: accurate and ‘intelligible

statements of the financial operas tions of the Government, I invited the ‘attention of the Congress to the desirability of capitalizing cerTer ypoditutes of the ve proved to.be self-Uquidating. I renew that recommendation at this time.

expenditures |

substantial amounts in their capital structures. . . | With the, lessening need for loans in some cases and the growing surpluses in other cases, it appears that some of these corporations ‘will have excess capital funds. . . . On the basis of ‘preliminary studies, I estimate that it will prove feasible to reduce the capital funds of some of these corporations by an aggregate figure of $700,000,000, without in any way impeding their operations. :

National Defense Taio:

I am convinced that specific tax legislation should be enacted to finance the emergency national defense expenditures. Although these expenditures appear unavoidable, they will not. increase the permanent wealth-producing capacity of our citizens. I believe that it is the general sense of the country that this type of emergency expenditure be met by a special tax or taxes. Moreover, this course will make for greater assurance that ‘such expenditures will cease when the emergency has passed. : I strongly recomménd to the Congress, therefore, that additional taxes be imposed to yield in the fiscal year 1941 at least enough to cover the emergency national defense expenditures in the fiscal years 1940 and 1941. In seeking additional sources of revenue, I hope that the Congress will follow the accepted principle of good taxation of taxing according to ability to pay and will avoid taxes which decrease consumer buying power,

The Deficit

The - deficit for the fiscal year 1941 is estimated at $2,178,000,000, as contrasted with $3,933,000,000 for the fiscal year 1940. It is expected that these deficits will be met in normal course partly by additional tax collections, partly by carrying lower balances, and partly by borrowing. If the Congress adopts my recommendations with reference to taxes the deficit for 1941 will be reduced to .$1,716,000,000.

Financing Maintenance Cost of Certain Services

I have always believed that many facilities made available to our citizens by the Government should be paid for, at least in part, by those who use them. For example, I believe that in the case of parks, national forests, historic monuments, and so. forth, small fees, as low as 5 or 10 cents per person, should be charged to those who enjoy them. A start on this: policy has been made. .

Federal Ad miniciation

. Effective execution of the Federal program for the fiscal year 1941 and the prospect of economies to be reflected in the estimates for future years is directly related to the quality of Federal Administration. The economies reflected in the 1941 estimates.are the result of the co-opera-tive effort of the entire Administrative service. ‘ ; : -Generally, we. are prepared .to move fopward on reduced rations. . The -reorganization has proceeded in accordance with Plans I and II. As a result,-11 million dollars of savings already have been impounded this year and deducted from the estimate base for 1941. . With further readjustment in the machinery and business: practices of the Government, additional savings will be realized. - Reorganization has also brought the Bureau of the Budget into the executive office. With the additional appropriation for this Bureau, our budgetary procedure can be greatly strengthened. We are beginning to get more effective review of estimates. With the help of Congress we can make further

Pensions, Retirements and ns

Assistance This category includes grants to

the states under the Social Se- |;

cruity Act for old-age assistance,

for maternal and child welfare, for Get

public health work, and for aid to ;

EE — PRISBURY'S

”

HEADACHE? |

Past Deficits, Reven ny

shown in the following figures: Year Ending June 30 1920 1925 e000 PRRs SNS 1929° ... 1930 1931 1932 gress oe 1933... ; 1934 esessssssssses ssa 1938 ... 1936 .. 1937 1938 1939

Wecs0 800000000 000000 eves 0s cscs scss en © 90000000 000,00 000000 esessesssssesssst ese e800 sv cecsssne es eescsssssecsese ss eesvenv se ee sasdesss esses se 000s cee

cine sevnavei one she

1941 Est, Deficit.

ment corporations.

progress in improving our acepunting and appropriation procedures. This is a necessary. prelude to better budgetary control. The Bureau of the Budget is preparing itself to be increasingly helpful in the supplying of information: to the appropriation committees of the Congress.

The Public Debt

There has been so much discus-

sion about the public debt . . There is no subject on which there

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WASHINGTON, Jan. 4 (U. P).—The course of Federal Government|’ expenditures and revenues and surpluses or deficits over past years is

Surpl Revenues or Deficit $6,694,565,389 3,780,148,685 4,033,250,225 4,177,941,702 - 3,317,233,494 2,121,228,006 2,238,536,180 3,2717,733,940 3,800,467,201 © 4,115,956,615 5,293,840,236 © 6,241,661,226 - 5,667,823,625 5,703,795,000 6,150,760, 000

184,787,085 183,789,215 ~902,716,845* 3,153,097,507* 3,068,266,874* 3,965,991,685* 3,575,357,963* 4,163,841 642+ 2,707,347,110%, 1,384,160,931* 3,542,267,954* 3.932,813,641* 2,176,231,570+

is more conscious or unconscious deception than the public debt.... (However) When the increase in the national debt is viewed against the background of what was accomplished by the growth of useful physical assets, and of effective national earning power, and by the strengthening of the nation’s credit and morale, there is no economic ground for anxiety, so far as the national debt is concerned, as to

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ARE METEORITE FC p58 WASHINGTON, Jan. 4 (U. P.)— The fifth meteorite to be recovered from North Dakota has been added to the collection of the Saitheonian Museum.

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