Unforeseen contingencies requiring money are always arising.  Our probable surplus for June 30, 1929, is small.  A slight depression in business would greatly reduce our revenue because of our present method of taxation.  The people ought to take no selfish attitude of pressing for removing moderate and fair taxes which might produce a deficit.  We must keep our budget balanced for each year.  That is the corner stone of our national credit, the trifling price we pay to command the lowest rate of interest of any great power in the world.  Any surplus can be applied to debt reduction, and debt reduction is tax reduction.  Under the present circumstances it would be far better to leave the rates as they are than to enact a bill carrying the peril of a deficit.  This is not a problem to be approached in a narrow or partisan spirit.  All of those who participate in finding a reasonable solution will be entitled to participate in any credit that accrues from it without regard to party.  The Congress has already demonstrated that tax legislation can be removed from purely political consideration into the realm of patriotic business principles.

Any bill for tax reduction should be written by those who are responsible for raising, managing, and expending the finances of the Government.  If special interests, too often selfish, always uninformed of the national needs as a whole, with hired agents using their proposed beneficiaries as engines of propaganda, are permitted to influence the withdrawal of their property from taxation, we shall have a law that is unbalanced and unjust, bad for business, bad for the country, probably resulting in a deficit, with disastrous financial Consequences.  The Constitution has given the Members of the Congress sole authority to decide what tax measures shall be presented for approval.  While welcoming information from any quarter, the Congress should continue to exercise its own judgment in a matter so vital and important to all the interests of the country as taxation.

NATIONAL DEFENSE

Being a nation relying not on force, but on fair dealing and good will, to maintain peace with others, we have provided a moderate military force in a form adapted solely to defense.  It should be continued with a very generous supply of officers and with the present base of personnel, subject to fluctuations which may be temporarily desirable.

The five-year program for our air forces is in keeping with this same policy and commensurate with the notable contributions of America to the science of aeronautics.  The provisions of the law lately enacted are being executed as fast as the practical difficulties of an orderly and stable development permit.