Monday, Oct. 27, 1941

How to Save Two Billions

At its own request, Congress was told last week how to save two billion dollars, but Congress did not like the recipe. Just before Congress passed the mammoth 1941 Revenue Act, adding $3,553,000,000 to the nation's taxes, Virginia's apple-cheeked, apple-growing Senator Harry Flood Byrd tacked on an amendment. The amendment directed Budget Director Harold D. Smith before Oct. 15 to show a joint committee of both houses how the Administration could save (in non-defense expenditures): i) a billion dollars; 2) a billion and a half; 3) two billion dollars.

Last week Director Smith turned in his report. For fiscal 1942, Congress has budgeted approximately $6,581,000,000 for non-defense spending. All but $3,385,000,000 of this has been set aside for commitments which now cannot be voided. To save two billions, said Budget Director Smith, Congress would have to slice:

> From aids to agriculture, $483,000,000,

or 45 1/2%.

> From aids to youth (CCC and NYA),

$344,000,000, nearly 95%.

> From work relief, $764,000,000, almost

74%.

> $106,000,000 from public works, almost

20%.

> $51,000,000 from old-age-assistance

payments, or 11%.

> $14,000,000 from veterans' benefits, or 2 1/2%.

> $75,000,000 from miscellaneous items,

or 75%

-In short, most of the saving would have to come from subsidies to farmers, youth and relief. Congressmen would as soon vote against these projects as they would vote against home and mother, the Stars & Stripes, or the Ten Commandments.

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