The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-12-23
Where Your
Taxes Go
How Uncle Sam Spends
Your Money in Conduct.
ing Your Business
BY EDWARD G.. LOWRY
Author Washington Close-Ups," Banks and
Financial Systems" etc. Contributor Political
and Economic Articles to Leading Periodicals
and q Writer of Recognized Authority on the
National Governments Business Methods.
BY EDWARD G. LOWRY

Financial Systems" etc. Contributor Political
and Economic Articles to Leading Periodicab
and q Writer Of Recognized Authority on the
National G-overnment's Business Methods.
Copyright, Western Newspaper Union
WARS EAT UP THE TAXES
When l set out to discover for you
where the money you pay as federal
taxes goes l did not have far to look.
1t goes for wars, past, present and
prospective. Last year a little over 30
per cent of the national income went
that way. In the report of the secre-
tary OF the treasury submitted to con-
gress in December, 1920, he remarks:
An analysis of government expenditures
for the fiscal year 1920, on the basis of
daily treasury statements, develops the
striking fact that of the net ordinary dis
bursements of Sc, 403, 10000 about 30 per
cent consisted of expenditures under the
following heads:
Purchase of obligations of for
eisn governments .......,S 421, 900, 900
War department ................. 1,611, 0OO,O coo
Navy department .............. 49,, 600, 900
Shipping board ................. S3l. 900 900
Federal control of transpuTta-
ton systems and payments
to the railroads under the
transportation act, 1920 ....... 1887, Oo0,O go
Interest on the public debt. 1,020, 900, GO
Pensions 213. 600, 900
War-risk insurance ............. 100000
Purchase of federal farm-loan
bonds 9o,0Os, 900
IOldl 20, Ib,SO ~
Substantially all the expenditures
entering into this total, and a large
share of the expenditures on various
minor accounts, represent burdens d.
rectly traceable to the war, to past
wars or to preparedness for future
wars. These figures serve to indicate
the direction which sincere efforts to
reduce the cost of the government
must take.
Then found Mr.. Gilbert, the under
secretary of the treasury, saying:
There has been much idle talk to the
effect that the excessive cost of govern
ment is due to inefticiency and extrava-
gance in the executive departments.
Without doubt there has been waste and
inefficiency in the various government de-
partments and establishments, and much
can be accomplished, and has already
been accomplished, by the Introduction
of efficient and economic methods of ad-
ministration and the elimination of du-
plication and unnecessary work. 1t might
well be possible to ave as much as
s ,0OO,0 900 or 500, 600, 900 by careful and sci
entitic reorganization of the governments
business.
The figures show that over 80 per
cent of the total annual expenditures
of the government are related to war.
Out of total expenditures during 1920 of
about $500 ZOO, 900. about 81 billions rep
resented expenditures directly traceable
to the war, to past wars, or to prepared
ness for future wars. OF this, about
$2,50O, o 10000 went for the army and navy,
over s500,0O0 600 for the shipping board,
over 81 600, 600 for the railroads., another
1000, 100000 for interest on the public debt.
almost $5OO, N0, 900 for purchase of obliga-
tions Of foreign governments on account
of their war expenditures, and the remain
der for pensions, war risk lOtment and
miscellaneous items related to wal. An
analysis of the expenditures of the first
six months of the fiscal year 1921 gives
similar results. The figures also show
that the total cost of running what may
be termed the civil establishment proper,
that is to say. the various government
departments, boards and commissions and
the legislative establishment, have not
much exceeded $25O, COZ, 900 even in the ab-
normal war years.
| sought details. If more thar 30
per cent of the entire disbursements
of 1920 went for past and prospective
wars, how much had we been spend
ing to keep the world safe for demOc-
racy? We are all familiar with the
argument that the best way to prevent
war is to be prepared for a 1
tlonpht 7 rirh< GrI ont u,hofhnr that
was true. l went back into the rec
ords and found that year by year,
from 1884 to 1919 inclusive, the treas
ury department had kept an account
of the actual disbursements-nOt ap-
preparations, mind you, but actual
money expended-of the War depart
ment, the Navy department and for
pensions. When l got all the figures
before me l couldn't add them up.
In the bureau Of internal revenue
they loaned me a machine and an
operator, and so I know and can tell
you that from 1884 to and through
1919 the War Department actually dis
bursed $23,OO2, 800, OOs. IS. In the same
period the Navy Department spent
$6,9O7, 1865, O32. "a; and pensioners of
past wars got $5,634,O79, 694.23.
That is a laundering total of $29,-
9O9, 759,O41.49 for the army and navy
alone, leaving out Of account the
$ 5 1884, O79, 694.23 for pensions.
l will let you decide whether any
part of the t~wenty.nine billion dollars
spent for preparedness and for war
prevented our going to var or found
us prepared when we went to war.
The three items l have enumerated
are only ribs of the skeleton Of the
cost of war preparation and activity.
l have not been able to ~excavate any
other detail figures. But it is known
that the war of 1912 cost about $685.
7O3,SSO.
The cost of the Mexican war is esti-
mated to have been $63, 6O5, 1921.
The total cost of the Civil war, TAX
ing the period from June 80, 1861, ~
June 80, 1866, may be figured closely
at SO, 50O,OOO,OOO.
The treasury In the winter Of 1920
p estimated In a report sent to con-
gress through the secretary that the
cost of the World war to us to that
date had been $24. 100, 100000, exclu-
sive of our loans to the allies and
other foreign nations.