tures for 1940 on the basis of the classification appearing in the daily Treasury statement... No. 2. Permanent appropriations included in Statement No. 2. BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: The Budget of the United States Government for the fiscal year ending June 30, 1942, which I transmit herewith, is a reflection of a world at war. Carrying out the mandate of the people, the Government has embarked on a program for the total defense of our democracy. This means warships, freighters, tanks, planes, and guns to protect us against aggression; and jobs, health, and security to strengthen the bulwarks of democracy. Our problem in the coming year is to combine these two objectives so as to protect our democracy against external pressure and internal slackness. The threatening world situation forces us to build up land, sea, and air forces able to meet and master any contingency. It is dangerous to prepare for a little defense. It is safe only to prepare for total defense. Total defense means more than weapons. It means an industrial capacity stepped up to produce all the matériel for defense with the greatest possible speed. It means people of health and stamina, conscious of their democratic rights and responsibilities. It means an economic and social system functioning smoothly and geared to high-speed performance. The defense budget, therefore, must go beyond the needs of the Army and Navy. It is not enough to defend our national existence. Democracy as a way of life is equally at stake. The ability of the democracies to employ their full resources of manpower and skill and plant has been challenged. We meet this challenge by maximum utilization of plant and manpower and by maintaining governmental services, social security, and aid to those suffering through no fault of their own. Only by maintaining all of these activities can we claim the effective use of resources which our democratic system is expected to yield, and thus justify the expenditures required for its defense. THE NATIONAL PROGRAM In this Budget I am presenting a program for 1942, carefully worked out to combine these objectives. This program, including defense and nondefense activities, will cost about 17.5 billions of dollars. For the same period, we expect the largest national income for the Nation as a whole and also the largest tax receipts. In addition to, but essentially and rightly as a complement to this program, the time has come for immediate consideration of assuring the continuation of the flow of vitally necessary munitions to those nations which are defending themselves against attack and against the imposition of new forms of government upon them. Such a complementary program would call for appropriations and contract authorizations over and above this Budget. The sum of all these defense efforts should be geared to the productive capacity of this Nation expanded to literally its utmost efforts. THE DEFENSE PROGRAM AND DEFENSE EXPENDITURES Sixty-two percent of the expenditures proposed in this Budget are for national defense. No one can predict the ultimate cost of a program that is still in development, for no one can define the future. When we recall the staggering changes in the world situation in the last six months, we realize how tentative all present estimates must be. These expenditures must be seen as a part of a defense program stretching over several years. On the basis of the appropriations and authorizations enacted for national defense from June 1940 up to the present time, plus the recommendations for supplementary appropriations and authorizations for 1941 and the recommendations contained in this Budget for 1942, we have a program of 28 billion dollars. This is a vast sum, difficult to visualize in terms of work actually to be done. If we can prove that we are able to organize and execute such a gigantic program in a democratic way, we shall have made a positive contribution in a world in which the workability of democracy is challenged. This defense program is summarized below: Army- Expansion of industrial plant Other defense activities.__ Total Appropriations, authorizations, and recommendations (June 1940, 1941, 1942) [In millions of dollars] $13, 704 11, 587 1, 902 1, 287 28, 480 |