The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1920-04-15
TIME TO RETRENCH

Washington Post-Mr. Mondell, the
republican floor leader of the house,
may have his limitations, and what
statesman has not but that he Is
sound on the question of governmental
economy even his dearest enemy viii
concede. Supplementing previous
statements to the same effect, he has
declared his unalterable opposition to
the issuance of more bonds and his
determination to secure a reduction
of appropriation to $1,250,000 900 less
than estimates. He insists that the
expenses Of the government must be
kept within it's income, and this can
only be accomplished by pairing esti-
mates to the bone and cutting out all
unnecessary appropriations.
The attention of the public is di-
rected by Mr.. Mondell to the fact that
during the first nine months Of the
current fiscal year expenditures eX-
ceeded revenues from all sources" 10
the amount of more than 5000 900 900.
At that rate deficit for the year CT
nearly $300,000000 would be created.
1t requires no great exercise of the
imagination to contemplate the re
suits if this sort Of fiscal policy were
followed out. The neutral credit soon
would be destroyed and the publ C
debt would continue to pile up instead
of disappear.
If ever there was need Of a sound,
conservative fiscal policy in the United
States, it is at this time. With a war
debt of more than $4,000 000,0 900 hang
ing over the nation, calling for an an
nual interest charge of $1,000000 900,
to say nothing Of the sinking fund,
expenditures. Congress must learn
that every worthy project cannot be
adopted; that many propositions which
contain merit must be put aside for
the practical reason that the money
required is not available. The time
has now come when congress, in con-
sidering the demands of the executive
departments for money, must first
charge off from estimated receipts the
amount required for interest on the
public debt and for sinking fund. That
amount should be set aside and the
balance apportioned to the purposes
which appear to be most worthy and
pressing. This can best be done under
the budget system, and herein lies
strong argument in favor of the adop,
ton of the budget.
There are convincing arguments
against the further issuance of bonds.
In the first place, it is unnecessary,
and would only be encouraging the
ext~avagant tendencies which have de
veoped with the disbursement of g.
gantic sums for war purposes. Good
business demands curtailment of ex-
penditures, and would demand it even
If the resources of the government
were unlimited. But there are other
strong reasons, among them the fact
that any future bond issue will have
to carry higher interest rates and
thus add still heavier annual fixed
charge against the treasury. And there
is still another reason which perhaps
is the most convincing of all. 1t IS
the opinion of men of sound Judgment
on financial matters that If the gov
ernment issues more bonds the effect
will be still further to depress the
price of Liberty and Victory bonds.
all of which are selling below spar in
the open market, These bonds are
held by probably 2O0OO,0o0 persons.
who have their savings invested in
them and who now find themselves
facing loss on their investment. II
the price of the bonds goes still lower.
the loss will fall upon those least able
to stand it.
Conservative citizens as rule, in
and out of congress. will heartily in
dorse the policy Of economy and re-
trenchment. That the public interest
calls for its adpotion cannot be
S1nhtod