These expenditures cannot be recovered; they must be met by the taxpayer now or in the future.

I wish to emphasize to the full extent of my ability the necessity, as a fundamental to recovery, the utmost economy of governmental expenditure of all kinds.

Pending the compilation and analysis of this statement I wish to suggest that you refrain from actually obligating money available for expenditure during the current fiscal year except in those cases where such postponement or elimination will clearly be to the detriment of the public welfare.

I recommend that an appropriation in the amount suggested by the Secretary of State be authorized in order that the expenses which it will be necessary to incur on the part of the Government of the United States in the prosecution of the claim to final settlement may be met.

The result of which is to impose this sum upon the regular budget and in effect increase emergency relief by that amount.

Prosperity cannot be restored by raids upon the Public Treasury.

The plan would require a substantial increase in taxes as no such expenditure or depletion of revenues as this plan implies could be paid from marginal income of the government more particularly in view of the very large increased expenditures imposed by the naval program, flood control and other branches of farm relief.

Sometimes linked with the proposal for an immediate large expenditure is the suggestion that it ultimately will result in a saving.

Our splendid Treasury is not a bottomless, automatically replenishing fountain of fiscal supply, and its outflow must be eternally watched and carefully and wisely directed into proper channels.

I am hoping to hold it about where it is. Perhaps we can make a little reduction here and there.

It is true that the Congress made a larger cut in taxes than I wanted to have made, because I knew that there would be great pressure for incurring some additional expenditures.

And having made the larger cut in taxation, I suppose they are prepared to resist the applications for increasing expenditures, especially in consideration of expenditures that call for permanent appropriations.

It seems to me that we ought to get along without enlarging appropriations.

I do not think that the money we have spent even estimating it at the highest sum, has been wasted in any way.

There is no pretense that there is any need of a public building there except to accommodate the post-office.

I am satisfied that the appropriation of $75,000 for a building at Youngstown is at present not justified.

It is the rule to make only such allowances in any year as can be paid from the appropriation made for that period.

The amount of money annually exacted from the industries and necessities of the people largely exceeds the sum necessary to meet the expenses of the Government.