Regional President Speech

1. Tentative character especially for fiscal 1946 (war expenditures might reasonably be estimated at $60 or $80 billion; FDR uses |70 billion.) The nar program 1. Phases A* Construction - now virtually completed B. Munitions, including ships - initial equipment over; now replenishing C. Pay, subsistence - will continue to rises »ore at higher pay, turnover (mustering out pay) 2. Totals 3« Authorizations and appropriations well in advance 7/1/ i2 - 6/30A 5 ^ IM ik Total authorisations 392.3 449.7 Expenditures.... 103.5 90.9 4* Bov tbs war has changed our economy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 II. A possibility for fiscal 1946 Expenditures.................$83 billion Net receipts.................41.3 billion Reduction in balance......... 2 billion Borrowing.................... 40 billion Federal Trust Funds..$5 billion Net......................... 35 billion cf. $65 billion in 1944 ana estimated $51 billion in 1945. III. Implications of message for the future 1. Debt management A. Favor a policy of orderly but steady debt reduction. Consistent with the objective of long- run economic policy. B. But "mistakes in debt management and tax policy- after the last war should not be repeated." Doesn*t identify the mistakes. 1919-30 yearly decrease of $84.5 million in the debt. At this rate 3 centuries for £292 billion of debt. 2. Taxes A major decline in war expenditures will make possible and desirable minor tax Digitized for FRAaSEdRj ustments. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Don't tax the masses to repay financial institutions. Tax large incomes to repay small holders. Expenditures A. Aftermath of the war Veterans Interest on debt Tax refunds B. Agriculture a. Two-year price support b. Long-run elimination of mal­ nutrition and poverty C. Social security, retirement, education D. Public works E. International financial programs F. Demobilization and post-war full employment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Karl R. Bopp (1945, January 17). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_19450118_karl_r_bopp

@misc{wtfs_regional_speeche_19450118_karl_r_bopp,
  author = {Karl R. Bopp},
  title = {Regional President Speech},
  year = {1945},
  month = {Jan},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_19450118_karl_r_bopp},
  note = {Retrieved via When the Fed Speaks corpus}
}