HUGE EXPENDITURE

New Zealand Herald, Volume LXXVIII, Issue 23860, 10 January 1941, Page 7

HUGE EXPENDITURE

DEFENce programme MR. ROOSEVELT'S BUDGET "MASTER ANY CONTINGENCY" WASHINGTON, Jan. 8 In his Budget message to Congress, President Roosevelt said world conditions forced the United States to build defences so that she would be able to meet and master any contingency. The cost of a three-year defence programme, 1940-41-42, would total 28,482.000,000 dollars. He estimated expenditure for the year ending June, 1942, at 17,485,000,000 dollars, of which 10,811,000,000 dollars would be for defence.. Maximum Use of Plant '•The democratic way of life is at stake and the ability of the democracies to employ their full resources, manpower, skill and plants has been challenged/' said Mr. Roosevelt. "We will meet the challenge by the maximum utilisation of plant and manpower, by maintaining the services of social security, and also-by giving aid to those suffering through no fault of their own. "An essential complement to this programme is the immediate consideration of means of assuring continuation of the flow of vitally necessary munitions to those nations defending themselves against attack. Such a complementary programme will call for appropriations and authorisations over and above the Budget." Great Increase in Army The President said the army would be increased from 250,000 men in June, 1940, to 1,400,000 by 1942. The navv estimates provided for doubling the personnel. There would also be a great increase in the air force. New requests for defence are 67 per cent above the current year's Government income, estimated at 8,275,000,000 dollars. This is an all-time record. The deficit is estimated at 9,219,000,000 dollars, the largest in peace-time history. The national debt will reach 58,367,000.000 dollars by June 30. The projected spending for defence and non-defence purposes next year exceeds the estimated expenditures of the current year by 4,289,000,000 dollars, 62 per cent being for national defence. Non-defence expenditure totals 6,674,000,000 dollars. Protection from Spies Mr. Roosevelt said he deemed it vital to retain the existing social security programmes. He recommended that workers not covered ba included in the old age and unemployment insurance scheme. He asked Congress to appropriate 16,000,000 dollars for the Federal Bureau of Investigation, to permit the adding of 500 G-men to the present force of 1547. in order to protect the United States from saboteurs and spies. AIRCRAFT OUTPUT 700 MACHINES A MONTH (Received January 0, 6.45 p.m.) WASHINGTON, Jan. 8 The United States' military aeroplane production is about 700 machines a month. They are being divided almost equally between the United States, Britain and her allies. Approximately half are combat aeroplanes and half trainers. It is estimated that more than 70 per cent, of the bombers and fighters are going to Britain.

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