COST OF DEFENCE

New Zealand Herald, Volume LXXVII, Issue 23545, 4 January 1940, Page 8

COST OF DEFENCE

AMERICA'S • ORDERS MARKED EXTENSION PEAK BEACHED IN 1939 NEW SESSION OF CONGRESS By Telegraph—Press Association—Copyright (Received January 3, 11.15 p.m.) WASHINGTON, Jan. 3 The United States War Department, in its annual report, says the augmentation and acceleration of national defence reached an all-time peak in 1939. Nearly 450,000,000 dollars were spent on military equipment. Expenditure on fighting equipment alone in the current fiscal year would approximate 373,000,000 dollars. In all 735 aeroplanes valued at 39,000,000 dollars had been delivered to the Air Corps last year and 983 additional four-engined bombers, pursuit and other aeroplanes were ordered. Air Oorps Expansion The expansion of the Air Corps to 6000 aeroplanes would be completed in June, 194.1. Production orders placed had increased as follows: —Anti-aircraft sound locators, 400 per cent; three-inch anti-aircraft guns, 210 per cent; antiaircraft machine-guns, 140 per cent; semi-automatic rifles, 153 per cent; and anti-aircraft fire control directors, 130 per cent. President' Roosevelt's annual message to Congress on Wednesday is expected to give Americans not only an interesting account of the internal affairs of the nation but also to chart America's position in a world at war. Huge Budget Deficit Mr. Roosevelt's Budget is expected to total 9,500,000,000 dollars, and predicts a fiscal deficit for 1940-41 of approximately 9,000,000,000 dollars, bringing the national debt to the statutory limit of 45,000,000,000. dollars. Contemplated expenditures, moreover, including 2,000,000,0000 dollars on national defence, and involving new taxes totalling 500,000,000 dollars, certainly offer inflammatory material for Congressional debates. Presidential Prospects The President is confidently expected to proposo no further experimental legislation, but the New Deal continues to be a live issue and will remain so until the presidential election in November. Prominent mention of the name of Mr. Cordell Hull, Secretary of State, is expected to produce confusion in the Democrat ranks. Mr. Hull, incidentally, will face the greatest political test of his career, since the reciprocal trade programme which he sponsored will undergo an extreme attack. AMERICAN NAVY NEW SECRETARY SWORN-IN SPEEDING-UP BUILDING (Received January 3„ 5.5 p.m.) WASHINGTON, Jan. '> After being sworn-in as Secretary of the Navy; Mr. Charles Edison said ho was studying means of accelerating the construction of warships and also assembling data on the feasibility of con-, structiug battleships up to 80,000 tons. It was too early yet to reach a conclusion. ACTIVITY OF SPIES INCREASE LAST YEAR WASHINGTON, Jan. 2 The director of the Bureau of Investigation, Department of Justice, Mr. J. Edgar Hoover, has reported that there were 1651 cases of espionago in the United States in 1939, compared with 250 in 1938 and the normal average of 35. Tho demands on the bureau had been the heaviest for 15 years.