Salt Lake Telegram | 1933-07-15 | Page 2 | Economy Act Saves Credit of Country

Economy Act Saves Credit of Country Expense Cuts Are Prerequisite site to Financing of Recovery Recovery Recovery Re Re- covery Moves Editors Editor's note This Thi is i another of a series eries of ot stories by t staff lf writers o of the thc Associated Press Pres explaining new laws S I IBy By D D. D HAROLD HAROID OLIVER OIIVER WASHINGTON July 15 To 15 ISuTa To maintain main main- tam tam tain the credit o of the United States government go a prerequisite for or borrowing bor bore borrowing rowing to finance the administrations administration's lions tion's tons ton's gigantic gigantc and relief re rc re- re lid lief lef plans was wa the te purpose of the economy act Affecting every fiber of oC national life me from the financial portfolios of the banks to him who stands in the the bread line lie the credit of ot the Washington Washington Wash Wash- ington government is i a bulwark of American solidarity That it should and must not be Impaired impaired im Im- Im paired comprised the cry crp in congressional congressional halls for or enactment of this law Public PubIc support was wac pronounced I It I had been ben no secret that persons with wih funds were beginning to look askance at the disordered state stale of th the treasury with deficits piling up How long they tey would continue to lend lend to t the government was a i question ques ques' question tion lon until Pr President Ro Roosevelt evel asked aked and ad received this thi to slash ex expenses ne right and left leU VETERANS SLASHES Designed Deigned also as a step to make good god th the Democratic platform pledge to cut government expenses 25 2 per cent ct the economy act act authorized authorized author author- ize the president to t slash allowances to all al war veterans veteran by various degrees degre and to cut federal salaries by 15 per cen cent The t veterans' veterans benefits were selected to absorb most of the shock shok as they had reached mo the astounding total of ofa a billion dollars dolas a year year approximate approximate approximately ly one fourth of the entire entre budget budget- and were constantly growing Also so thousands o of veterans were on the Alo compensation roll who could not trace tace their ailments to t wartime ser sere vice vie The administration took the view this thle was wa not the time to continue such gratuities A howl went up about the veterans The first regulations issued by the president regarded as a too to severe i president itself lib liberalized liberalized lib lib- were amended amende and congress conge Itsel lb the law Nevertheless veterans' veterans appropriations were reduced by about tons A house appropriation subcommittee subcommittee sub sub- committee has been ben created to find fid ways of curtailing other similar permanent permanent per per- manent annual appropriations The Toe theory of the salary cuts was that this teory item had not been ben reduced d in proportion thi iem to the to-the the drop in the cost cot of living BASIS FOR SLASH Therefore the president was wa authorized au to determine e living ving ing costs cot forthe forthe for forthe 30 1928 the six months ended June une month beginning with and md similar periods perIod the latter half of 1932 the percentage difference later to be the amount o of the salary slash The cut of 15 per per- per per- percent percent cent was effected for the year beginning last lat July 1 1 If the cost of living rises above the base l te period for or 1928 the president bae may rescind the cut or lighten it i. i The economy econom act made a big dent in inthe inthe inthe the deficit but even with that tat the government ended fiscal Ciscal year with its outgo exceeding income by wih it and with witha wita a public debt o of on July 10 one of the largest in history hi So the administration is i out to consolidate consolidate con con- S and trim other services servie drop unnecessary and furlough some Political pressure presure is i making the Joi jo difficult