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Show HERE IS COMPLETE TEXT OF ROOSEVELT BUDGET MESSAGEl WASHINGTON. Jan. 4 I- t ' '' ' . Th text of President Roosevelt's f"" . . twm, - 1 1 i mii i . budget Rinui to congress: f fjm "V I transmit herewith th. budget . - ' I ' Ji 'l . r i of the United States government .-' ' . .-. 4 , for the flecej year ending June ' i ' W w ' r f if . 30, 1941. Estimated expenditure y - I ' ' ' , . . , ; : r ' fcV at $8,424,000 ar down $675,- , ' ' ' !X r - V if ' ' s. V 000,000 from the fiscal year 1940. ' I , - " ' . f ' , Estimated normal receipts at -. . ''-.. " ', $5,548,000,000 are up $.182,000,000 . . - ' ' J from the fiscal year 1940. Recov " . ' 1 ' ' ery of excess capital funds from ' ' If) government corporations Is eiti- t ' ' ' ' nr ' , - f mated at $700,000,00. The net den- V ' , I . - '' clt Is estimated at $a.m,000,000 T I 4' ' ' L. . as compared with an estimated . v' J. V '. ' - l - " $3,933,000,000 In the fiscal year S ( ft - 'X '(- - T J 'F 1940. If the tax recommend. f I V' ll . ' 1 ' i "J f tlons toUUng $460,000,000 herein It - . t-V '",(':: l , J : j made are adopted, the deficit ' ' , i, J I ' J ' will be further decreased to t, s i I ; ' X' ( - ! ..' t I $1,716,000,000. Appropriations, ex- f ' I ) . I -4 ' r eluding those for debt retirement, I ' r I J ' ' a" as dlstinguUhed from actual I t3 A ' C- - J expenditures, are estimated at 1 1 " I?', 5 C $8,101,000,000, as contrasted with 1 " " " 1 ' i I JL J ' V - ' own position solely In terms of their liabilities do so continually In discussing th government' position. Those who state baldly that the government's debt Is 43 billion bil-lion dollar and stop there are stating a deceptive half-truth calculated to make our people apprehensive. For one thing, It would clarify th public mind If It were pointed out that of the, 42-blllion dollar flgur the amount Incurred between June ' 30, 1933, and December 31, 1939, Is Just over 19 billion dollars. For another thing, It would be more honest and more honorable for them to say that, while one Tine In the national budget shows a national debt of 42 billion dollars, dol-lars, other lines lndlcste that the government has seven billion dollars dol-lars of caih, gold available for debt redemption, and proprietary Interest In government corporations, corpora-tions, which reduces the net debt to 35 billion dollars. In addition, of course, there are the billions of dollars' worth of durable, tangible assets con. structed or purchased by the government gov-ernment that are a real offset to the debt, though never listed as ,k,uooO0 In th fiscal yar 1940. Review of Fiscal Policy Th budget of the United SUtea government Is a statement that reflects in mnn.y t.m. -h.t k. government does for the people , Associated Prut WtrepKoto. THE NO. I FANS OF THE PRESIDENT WHEN HE READ HIS MESSAGE TO CONGRESS WERE MEMBERS OF OWN FAMILY d VtZJrtZJ!,tSP'CUim WHl' T"W t,mi W 4h P""-t, appear vit.II, Interested Mr. Imhv.II'. word. Fred-chTldr Fred-chTldr at ST r?fcl m HTl l. h ; L."ml,y-, J1" hr- erle D'UBO' "neU th V-1. wt.ry he hold. "Buni.." L ".!"-'!.-"'"- 'f.f i",hAMr '" " C-" M. omv.U, ond from right, appear, thoughtful, while th. president'. Harry llnPH..; n.a.. Sl.tl. Ball aUrurtiaJ-Bnnl." Hall, graautchiUxa, mother, Mn Sara -"-r . htr snn'. w.rd- - -rr W ' It Is farVai than many experts on national defense think should be spent, though It Is In my Judgment Judg-ment a sufficient amount for the coming year. I do not believe that the majority ma-jority of the people In this country coun-try want to see th work relief programs for the coming year reduced below $1.300.000,0u0. This sum, in itself, covering the activities activ-ities of the work proJecU administration, admin-istration, the national youth administration, ad-ministration, the civilian conservation conser-vation corps, and grants of th farm security administration rep. resenU a large perhaps too large reduction of current expenditures. I do not believe that the ma-Jorlty ma-Jorlty of people feel that the agricultural program should be reduced below the figure of $900,000,000 because this figure, in Itself a Urge reduction below the current year, will be barely sufficient to carry out soil, production pro-duction and surplus removal operations. I do not believe that th majority ma-jority of people think the Item for public works and Investmenu of $1,100,000,000 can be further reduced because this amount contains con-tains practically no.monev foe and what th people contribute to the government. In these figure over 6 course of years are mirrored the changing chang-ing attitudes of th people toward the growing needs which they expect their government to meet. The relatively low and constant level of expenditures throughout the nineteen-twentles accurately reflected the relatively minor role played by the government In thoae years. The substantial Increase In-crease in the past decade Is a reflection of the degree to which the country. In response to changing economic and International Interna-tional conditions and changing attitudes, has turned to the government gov-ernment to meet social needs recognized by our citizenship. Nowhere .re our democrat! processes so faithfully depicted. In the early thirties prior to 1938 fiscal policy was exceedingly exceed-ingly simple in theory and extraordinarily extra-ordinarily 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 cam near to bankrupt-Ing bankrupt-Ing both eur people and our government Following 1933 the fiscal policy of the, government was mora should remove any doubt as to the effectiveness of a fiscal policy pol-icy related to economic need. The wise exercise of such a fiscal' policy imposes grave responsibility responsibil-ity pn the government. Govern ment must have the wisdom to use Its credit to sustain economic activity in periods of economic recession and ' the courage to withhold It and retire debt In periods of economic prosperity. And let us not forget that the withholding of government credits cred-its In time of need for political advantage Is no less reprehensible reprehen-sible than lu profligate use at any time. In approaching the budget for the fiscal year 1941 I have sought, as In the past, to relate fiscal policy to probable economic eco-nomic necessities. As the budget Is being prepared we are achieving achiev-ing the highest levels of production produc-tion and consumption In our history. his-tory. The extent to which recovery re-covery has progressed, and the degree to which speculation and price Increases have, on th whole, been kept In check, have mad It possible for us to consider con-sider a substantial lessening of government expenditures on activities ac-tivities not ImmediaUly essential essen-tial for national defsnsa. ' dably less than those for (he current year, I am hopeful that they will prove adequate. The work proJecU administration will be able to provide employment for an average of 1.350,000 persons. per-sons. The national youth administration admin-istration ran employ an average of nearly 600,000 American youths, and the civilian conservation conserva-tion corps will operate 1227 camps and provide for a month-ly month-ly average of 230.000 enrollees. The farm security administration administra-tion will operate on about 80 per cent of lu 1940 level. Relief expenditures ex-penditures should be closely geared to actual needs. If conditions con-ditions fail to meet our hopes, additional funds may be necessary. neces-sary. I may, therefore, submit revised estimates later in the session. ses-sion. Farm Problems Agricultural programs Under the broad heading of agricultural agricul-tural programs I have Included agricultural adjustment benefits, the surplus removal program and parity payments arising from 1940 appropriations. Despite a gratifying general Increase In-crease In farm Income, agriculture agricul-ture Is still not receiving its proper share of th national In- the Individual security and health of millions of citizens. lu growth YeflecU mainly th beginning of a comprehensive social security program. Interest en the public debt Obviously no reduction in this Item can be made In the next year. The average Interest rate on the publio debt for the fiscal year 1929 was 3.9 per cent. The present computed rate la 2.8 per cent Regular operating expenses This Item represenU the basic financial requlremenU of the government Blue pencil Inroads are not easy to make. In the face of large and appealing re-quesU re-quesU for increases I have held appropriations and estimates of expenditures generally to the 1940 level or below. Where legislation legis-lation has added new activities I have offset the cost by reductions in old activities. I have carefully checked the individual estimates under these broad categories and I am satis-fled satis-fled that no lower figures can be atuined except at the expense of impairing the efficiency with which laws are administered or of working undue hardship on individuals in-dividuals and economic groups. I ' In seeking additional sources of revenue, I hope that the congress will follow the accepted principle of goodUxatlon of taxing according accord-ing to ability to pay and will avoid taxes which decrease consumer con-sumer buying power. Deficit Lower The deficit The deficit for the fiscal year 1941 la estimated at $2,176,000,000, as contrasted with $3,933,000,000 for the fiscal year 1940. It is expected that these deflciU 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 ref-erence to taxes the deficit for 1940 will be reduced to $1,716,-000.000. $1,716,-000.000. Financing the maintenance cost of certain services I have always believed that many facilities facil-ities made available to our citizens citi-zens by the government should be paid for, at least in part, by those who use them. For example, ex-ample, I believe that In the case of parks, national forests, historic his-toric monumenU, and so forth, small fees, as low as 5 or 10 cents per person, should be charged to During the period between June 30, 1933, and June 30, 1940, nearly 14 billion dollars of federal fed-eral funds have gone Into recoverable recov-erable loans and investmenu and durable Improvements. Burden Decreased Furthermore, during the same period, the burden of the combined com-bined total of public and private debts has decreased. The Interest Inter-est on the public debt alone in the calendar year 1939 constituted consti-tuted only 1.45 per cent of the national income, as contrasted with a corresponding percentage of 1.62 per cent for the year 1933. . The increase In the national Income over 1932 for the year 1939 alone is far In excess of the total increase in the debt for the whole period since 1933. The credit of the federal government has never been higher. The debt accumulated since 1933 represents a far more prudent pru-dent and productive use of our people's savings than much of the enormous private debts piled up In the twenties. The billion that were borrowed for specula-tion, specula-tion, for foreign loans, for second sec-ond and third mortgages on over produced commercial construction, construc-tion, hardly represented the most those who enjoy them. A start on this policy has been made. In such a way a substantial substan-tial part of the annual cost of maintenance of roads, trails, and grounds in foresU and parks will come back to the treasury and reduce the annual cost of government govern-ment Another example is the $50,-000,000 $50,-000,000 the government spends annually in the maintenance of dredged channels, buoys, lighthouses, light-houses, life-saving stations, and so forth. It would seem reasonable that some portion of these annual expenditures ex-penditures should come back In the form of small fees from the users of our lakes, channels, harbors har-bors and coasts. If the congress would make a special study of the further possibilities along these lines I will be glad to make available for such a study ma-terial ma-terial from various departments. Federal Administration new proJecU in any part of th country. Pensions, Assistance I do not believe that th ma. Jorlty of people feel that the government can possibly reduce, by any substantial sum, the fig. ure of $1,200,000,000 for pensions, retirements, and assisUnce of many kinds, including public-health public-health work, aid for dependent children and the blind, and veterans' vet-erans' benefits. The Item of $1,100,000,000 for Interest on the public debt cannot, can-not, of course, be reduced at all, and w should remember that the rate of interest paid by the government Is today one-third lower than it was in 1929. AH of these Items amounted to estimated expenditures of $7-400,000,000, $7-400,000,000, and there, remains only one other item of $1,000.-000,00012 $1,000.-000,00012 per cent of the total for the operating costs of the regular departmenU of the government gov-ernment These are dawn tn k realistically adapted to the need of the people. All about were Idle men, idle factories, and Idle I funds, and yet th people were In desperate need of more good than thy had th purchasing power to acquire. The government govern-ment deliberately set Itself to correct these condition by borrowing bor-rowing Idle funds to put Idle men and idle factories to work. The deliberate use of government govern-ment fund and of government credit to energize private enterprise enter-prise to put purchasing power in th hands of those who urgently urg-ently needed It and to create . demand for th producU of factory fac-tory and farm had a profound effect both on government and private Incomes. The national income In four year rose 69 Pr cent, from 43 billion dollar In 1933 to 72 billion dollar In 1937, th largest absolute rise for ny four-year period In our his-tory, his-tory, aot even excepting the ris during th World war. Employment lags On th othr hand, employment employ-ment still lags considerably below be-low the levels of 1929. Many et eur younger workers have not found employment and many others have been displaced by the machine, W must not only guard th gains we have made, but we must press on to attain full employment em-ployment for those who have been displaced by machines as well as for the 5,000,000 net addition ad-dition to the labor force since 1929. W must therefore,.avoid the danger of too draatlo or too sudden . curtailment of government govern-ment support 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 . natural nat-ural increase In receipts from current taxes and a decrease In come. I am, therefore, proposing to continue substantially undiminished undi-minished the various agricultural programs. I have not however, Included estimates for new appropriation for parity paymenu 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 sug-gest in any way abandonment of the policy of parity paymenu heretofore adopted, and future events may call for some appropriation appro-priation to this end. I note, however, how-ever, in passing, that the congress con-gress has failed to make any provision pro-vision for the financing of thee paymenu already made or obligated obli-gated for 1938 and 1939 crops. Federal Investments Public works and Investments This broad class of expenditure expendi-ture represents the use of federal fed-eral capital for investment in useful public works, for ship ennatruf-Hnn mrA fn- Uana reruse to accept the responsibility of adopting either alternative. Other Side of Budget Revenue estimates Total tax revenues are estimated at $6,161)00,000. Tax revenues, after deducting appropriations to the old age security fund, are estimated at $5,548,000,000. Although net revenue collections collec-tions for the fiscal-year 1941 are estimated to exceed by $382,-000,000 $382,-000,000 the estimated collections for the fiscal year 1940, the Increase In-crease is not as large as some might have expected. This Is owing ow-ing partly to the ineviUble lag of tax collections behind increasing increas-ing Incomes, and also partly. It is feared, to an impairment of the productiveness of the tax base arising from the revisions in 1938 and 1939 of corporate and Individual Indi-vidual income and capital-gains taxes. Return of surplus funds from prudent use of our people's savings. sav-ings. It Is true that isolated debts can be defaulted without great harm to the general economy. But this Is not true when, a in I 1933, a large part of our private i debt was in danger pf default . f and the savings of (h whole ' 1 community, as well as the gen- I eral credit of industry and agriculture, agri-culture, were Imperiled. A part of the existing publie debt and of agency loans is, in fact, accounted for by the necessary neces-sary assumption by the government govern-ment through th familiar "balling out" process of private debts on the verge of default To Aid of State. In considering the growth of the federal debt, it must finally be borne in mind that in recent years the federal government ha had to take over some of the burdens bur-dens which had heretofore fallen fall-en UDon our states and mnnlH. Effective execution of the federal fed-eral program for the fiscal year 1941 and the prospect of economies econo-mies to be reflected In the estimates esti-mates for future years Is directly direct-ly related to the quality of federal fed-eral administration. The economies econ-omies reflected in the 1941 estimates esti-mates sre the result of the cooperative co-operative effort of the entire administrative ad-ministrative service. Generally, we are prepared to move forward, on reduced rations. ra-tions. In several management agencies I have recognized a condition con-dition of definite undernourishment. undernourish-ment. I have, for example, provided pro-vided Increases for the bureau of the budget and the civil service commission. I believe In each we will be making a modest investment in-vestment which will in future years pay large dividends. ' Furthermore, as I have suggested sug-gested In my annual message, it is important for good administration adminis-tration that Urge numbers of positions now exempt should be placed under the requlremenU of the civil service. Reorganization has proceeded in accordance with plans I and II. As a result $11,000,000 of savings already have been impounded this year and deducted from the estimate base for 1941. With further fur-ther readjustment in the machin- v. "v,nu"" e from two billion dollars In the fiscal year 1933 to over five billion dollars toi th fiscal year 1937, primarily because the people had mora Income out of which to pay taxes. Th people paid three billion dollar dol-lar more In taxes but they had nearly ten time snor than that or 30 billion dollars, to spend on other thing. This statement deserves de-serves . headline. Rapid progress waa mad toward . balanced budget By th calendar year 1937 excess of ' government cash outgo over government cash Income had dropped to 331 million dollars. Unfortunately, Just as the tun when It seemed that th federal government would be able safely to balance U budget on th basis of a national Income of approximately approxi-mately 75 billion dollars, ma lad-Jus lad-Jus tmenU in the economic system began to appear and caused . recession In economic activity. The recession was due to a variety of cause stemming In th main from over-optimism which led the government to curtail cur-tail lu net expenditure too sharply for consumers' purchasing purchas-ing power to keep pace. A Urge volume of unsold goods plied up. If the recession were not to ly for aid to agriculture. While the expenditures for these purposes In 1941 remain large, a substantial portion of them arises from existing appropriations appro-priations or take the form of reimbursable loans. The estimated expenditure for the general public works pro-gram pro-gram Is $641,000,000, but th proposed pro-posed new appropriation for this item to carry on already authorized author-ized proJecU is only $498,000,000, To obtain this relatively low fig. ure the starting of Important new projeeu has had to be postponed post-poned and the purchase of additional addi-tional land has had rigidly to be limited. This action brings the public-works public-works program down to the minimum min-imum goal of $500,000,000 a year suggested by me on several previous pre-vious occasions, and conserve the reservoir of public proJecU for a time when private construction con-struction declines.. Last year, in the interests of more accurate and Intelligible statemenU of the financial operations oper-ations of the government, I Invited the attention of the congress con-gress to the desirability of capitalizing capi-talizing certain capital expendi-tures expendi-tures of th government that have Droved to be aelf.liniiidatinv government corporations At various time in the past as emergencies have arise, the federal fed-eral government has established credit corporations and has Invested' In-vested' substantial amounts In their capital structure. Although these expenditures were nonrecurring nonre-curring and extraordinary costs, they were reflected In the annual budgeU as charge against current cur-rent recetpU and Increased the deflciU of prior years. With the lessening need for loan's in some cases and the growing grow-ing surpluses In other cases, it appears that som of the corporations cor-porations will have excess capital funds. Currently, in response to senate sen-ate resolution 150, Seventy-sixth congress, a comprehensive survey and appraisal of aaseU of government gov-ernment corporations Is being carried out On the basis of preliminary pre-liminary 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. opera-tions. - - In the case of certain lending agencies, any funds received from the retirement of stock will be credited to revolving funds in pallties. By 1933 the strain of the depression upon the finances of local governmenU had become be-come unbearable. From June, 1929 to June, 1933,-states 1933,-states and municipalities had to Increase their net debt by over four billion dollars and their credit in many cases had approached ap-proached the breaking point. By 1933 there was an insistent demand de-mand that the national government govern-ment come to the financial aid of local governmenU Consequently, between June, 1933, and June, 1940, the federal government will have made available for local relief, work relief and local public works the sum of 17 billion dollars. In addition, ad-dition, during this same period, the federal government increased IU grants for public roads by one billion dollars over th preceding pre-ceding seven years. Rehabilitated Credit By reason of these federal expenditures ex-penditures It became possible for the state and municipalities during this period to rehabilitate rehabili-tate their credit, and even to reduce re-duce slightly their aggregate indebtedness. in-debtedness. If they had continued contin-ued to discharge the responsibilities responsibili-ties that were formerly theirs to emergency expenditures, and we (hould try to offset th unavoidable unavoid-able Increase in expenditures for national defense by special tax receipts, and thus hop to secure, se-cure, for th over-all picture, . gradual tapering off, rather than an abrupt cessation, of th deficit In th proposed budget I have tried to Interpret th wish of our people. They want to strengthen our national defenses de-fenses and are prepared to pay additional taxes for this purpose. pur-pose. They wish to attain. It possible, an over-all decrease In expenditures. They would like to see a reduction In the deficit but not of a magnitude that would Imperil . the progress of recovery. To translate the consideration of the budget from forensic to national needs, I submit . summary sum-mary for the fiscal year 1941 of approximate expenditures required to meet these needs: National defense... $1,800,000,000 Work relief programs 1,300.000,000 Agricultural programs 900,000,000 Public works and Investmenu 1,100,000,000 Pensions, retirements, and assistance ... 1.200.000.000 bedrock of th activities and functions ordered by the congress. con-gress. If further savings are to be made In these-operating costs, th congress will have to direct by statute the elimination of many functions. And even If they should do so, the amount saved In this budget could only be a small percentage of the total. Therefore, those who call for further cuU should have th courage and the honesty to specify speci-fy where they should be made. Emergency Outlay National defense these 'estimate, 'esti-mate, -represent expenditures needed to develop and maintain our normal defense preparations. They also Include, In view of the current world situation, the emergency expenditure required for the war and navy departmenU, depart-menU, th coast guard, department depart-ment of Justice, and the Panama canal. In order that these emergency requlremenU may be clearly Ft'taJ.!? I'tvd them .i-1'" ,lc1 y -90 nd 1941. They call for supplemental supplemen-tal appropriations of $272,000.-000 $272,000.-000 and $300,000,000 In these two years. This segregation will, I nope, help to focus attention on reea on Itself and become another depression, th buying power of the people, which constitutes th market tor th producU of industry in-dustry and agriculture, had to be maintained. To this and. in th spring of 138, 1 recommended . further use of government credit nd th congress acted on my recommendation. The soundness of this realistic approach to . fiscal policy related to economic need waa again strikingly demonstrated. In place of th 42-billlon-dollar decline in national Income that occurred from 1929 to 1932. the darlin. the treasury and will be available for new subscriptions to stock when, as, and if needed. In these ease paymenu to the treasury will appear aa crediU under certain cer-tain expenditure Items. In other cases, paymenu will be reflected In miscellaneous receipts. Urge Special Taxes National defense taxesI am convinced that speclflo tax legislation legis-lation should be enacted to finance fi-nance the emergency national defense expenditures. Although these expenditures appear unavoidable, un-avoidable, they will not increase I renew that recommendation at this time. As before, I would confine this principle to projecta that are definitely capable of yielding revenue sufficient to defray, with interest their cost of eon. st ruction. In accordance with this principle, I propose that the requlremenU for new self-liquidating loans of the rural electrification electri-fication administration be met through funds advanced by the Reconstruction Finance corporation corpora-tion instead of by direct appropriation. appro-priation. octal Security a degree commensurate with th federal government's effort, the aggregate indebtedness of our states and municipalities would have been Increased by not less than 18 billion dollars and their taxes would have been enormously enor-mously increased. Debt whether individual, corporate cor-porate or governmental, cannot ' be Judged In a vacuum; It must be considered In light of earnings, earn-ings, asseU and credit standing. , When the increase in the national nation-al debt is viewed against th background of what was accomplished accom-plished by the growth ot useful interest on the public debt 1,100,000,000 Regular operating. . 1,000,000,000 Total $8,400,000,000 This table preaenU In . simple form which any layman can understand, the principal, dlvl-sions dlvl-sions into which government expenditures fait I constantly marvel at the glib generalities to th effect that If one has but th will to do so anybody can reduce government expenditures by vast sums sufficient suf-ficient Immediately to "balance the budget" It costs nothing to ery and business practices ot the government additional savings will be realized. Reorganization has also brought the bureau of the budget into the executive office. of-fice. With the additional appropriation appropria-tion for this bureau, our Budgetary Budget-ary procedure can be greatly strengthened. We ar. beginning to get more effective review of estimates. With the4ielp of congress con-gress we can make further progress prog-ress in improving our accounting and appropriation procedures. This Is a necessary prelude to better budgetary control. The bu- our emergency defense expenditures expendi-tures and the problem of financing finan-cing them. It will also facilitate th return to a normal defense program when the current emergency emer-gency has passed. Business Gains Noted Work-relief programs For the purpose of this summary I have Included the activities of tfi work projects admlnistra-tlon, admlnistra-tlon, the national youth administration, adminis-tration, the civilian conservation corps, and th grants of th farm ecurity administration. . In submitting estimate for these agencies I have taken Into consideration the current Improvement Im-provement la buslnees condition. The first effecU of Increased business activity have aot re-julted re-julted la . proportionate reduction reduc-tion In relief needs. This Is because be-cause th Increase In employment employ-ment has affected principally those wh have had casual or part-tlm work. But 4her Is reason to hope that . continued expansion of business would diminish di-minish relief requlremenU substantially. sub-stantially. While th estimates ar .ppr. from 1937 to 1938 scarcely exceeded ex-ceeded eight billion dollars. In laos of . four-year period of qutdation and deflation, productive produc-tive activity turned up within Bin. atontha. aVswhes lt.l Laval By 1939, in terms of dollars, th national income . closely approached, and, in terms of real production and consumption, making allowance for the lower level of prices, was equal to that f 1937... -.' i ,., Th experience t 1938-1938 I max such statemenU and they can be decorated to fit into th appUuse of many audiences. But It Is th old, old story of th man who loves to utter generalities gen-eralities and change, th subject abruptly when he Is pinned dowa to hard facts. Nodosa! Defease In these headings, for example, I do not believe that the majority of th people in this country want to reduce the budgeted estimate esti-mate of $1. 800,000,000 for national define. This I .a Increase, of I course, over the current year, but 1 HI me permanent wealth-producing capacity of our citizens. I believe that It is the general sens of the country that this type of emergency expenditure bo met by a special tax or tax. Moreover, More-over, this course will make for greater assurance that such expenditures ex-penditures will cease when the emergency has passed. I strongly recommend to the congress, therefore, that addi- , tional taxes be imposed to yield in the fiscal year 1941 at least enough to cover the emergency national defense expenditures In 1 th fiscal years 1940 and 1941. P.nalons, , retlremenU and assistance This category Includes In-cludes grants to the states under th. social security act for old age assistance, for maternal anif child welfare, for publio health work, and for aid to dependent children and the blind, as well as veterans' benefits, railroad retirement benefits, and contributions contri-butions to federal employe retirement retire-ment funds. It does not Include Insurance beneflu paid out ot the old age and unemployment trust funds. This general category afiecU physical asseU and of effective national earning power and by : the nation' credit and morale, 1 there Is no economic ground for' anxiety, so far as the national debt Is concerned, as to the nation's na-tion's future. And If our citizens understand the capacity of th nation to produce Increased national na-tional Income and act thereon with all possible faith and practical prac-tical energy, they will be In . fosltton to anticipate balanced udget without curtailing essential essen-tial social programs. FRANKLIN D. ROOSEVELT. " January 3, 1940, y i reau of the budget Is preparing Iteelf- to be Increasingly helpful In the supplying of information to th appropriation committee of th congress. Th. Publio Debt . There has been so much discussion dis-cussion .bout the public debt that I feel that som concluding observations thereon would be very appropriate at this time. There is no subject on which there to mora conscious or unconscious un-conscious deception than the public debt. People who would never dream of assessing their |