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    "localId": "205714928",
    "label": "Letter from Ambassador William Pawley to President Harry S. Truman, with Attachment",
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    "id": "205714928",
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    "contentType": "document",
    "title": "Letter from Ambassador William Pawley to President Harry S. Truman, with Attachment",
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        {
            "day": 2,
            "logicalDate": "1947-03-02",
            "month": 3,
            "year": 1947
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{
    "seq": 9,
    "pageIndex": 0,
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    "ocrText": "-8\nAs a matter of fact, order and stability are the necessary\nrequisites for the removal of the obstacles which prevent or\nretard our development. To combat them, the Government during the\npast year endeavored to control the inflationary process, but the\npressure from well-known factors responsible for the origin of this\nprocess is still very stong. As other countries, we are confronted\nwith an excessive increase in the circulation medium, to which we\nhad to resort in order to face the extraordinary expense -- among\nother internal causes -- resulting from active participation in\nthe world conflict. Paper money was issued not only to meet these\nobligations, and to acquire exchange resulting from exports, but,\nalso, to meet consecutive deficits. These reasons for issuing paper\ncurrency are not susceptible to immediate and complete paralization.\nThus, the foreign trade balance in 1946 exceeded 5 billion cruzeiros,\nwhile, on the other hand, the deficit for the year exceeded 2 billion\nand 600 million cruzeiros. Consequently, 2 billion 959 million\ncruzeiros were printed during the year, the budgetary disequilibrium\nbeing responsible for the larger amount, despite measures taken during\nthe year for decreasing expenditures and the strengthening of\nrevenue, which actually exceeded the estimates.\nThe execution of the budget of 1946 began with the expendi-\nture of amounts, which had not previously been included and which\nhad been provided for because of subsequent readjustment in\nthe\nsalaries, wages and pensions of civil and military personnel at\nfirst estimated at more than two billion cruzeiros. The budget\nfor 1947 as approved was balanced, presenting even a small credit.\nWith the alterations subsequently made in the appropriations for\nPublic Works and Equipment it showed a deficit, a situation which\nunder normal conditions will tend to become aggravated in view of\nthe unforseen expenditures which always arise. The allotment\nfor those expenses, included in the estimates as submitted,\ncorrespond to the intended revenue. The Congress, however,\ndecided to increase the total by more than two and a half times,\nwhich led the Government to revise its program.\nOn the other hand, the necessary reforms in the revenue\nlaws to permit a return to a balanced budget will only show\nresults in the budget of 1948. The budget for 1947 - which\ncontains omissions due to its having been prepared before the\nadoption of the Constitution - was prepared with full knowledge\nof the difficulty in curtailing expenditures for personnel.\nThese increases in the federal budget, as well as in the budget\nof the industrial concerns belonging to the Union, threaten to\ntransform the administration into a mere collecting agency of the\nsalaries of those it employs, jeopardizing public works and ser-\nvices of general interest. To permit necessary savings the Govern-\nment resorted to other sources of revenue, and will not overlook\nthem in carrying out the budget. The Government has not given up,\nhowever, its intention to balance the budget. This objective\nwill\nhave to be achieved gradually and as the general difficulties\ndecrease. On the other hand, the curtailment of expenditures will\nhave to follow the criterion of giving preference to those which\nwill serve reproductive purposes.\nIt is not too much to expect more prosperous and peaceful\ntimes once the budget has been balanced as a result of a policy of\nconstant curtailment of expenditures, of cautious dipping into the\nsources of income and of an increase in revenue, and once the ill\neffects of the wave of inflation have been reduced and an economic\npolicy which will awaken the dormant energies of the country has\nbeen adopted.\nNot less\nCHARGE\nAND\nto"
}