The Birmingham age-herald., 1923-10-07
SPENDING THE PEOPLES MONEY

hn1M AuNN ~11lRrFnta~ SPENDING THE PEOPLES MONEY
 In 8 redent interview Chanrman Madden of the house committee on appropriations brought out a point in connection with the cost of the gov ernment and its sources of revenue which might we'll be considered by the American people: Students of history and national characteristics agree that America is the most extravagant and wasteful country on earth. This re- fleets itself in the careless attitude Of the American people towards the suendthrift tendency of their govern ment. The average American does not seem to know where the public revenues come from or whether or not the government exercises reasonable care in the outgo.
 "The federal government" said MT. Madden, "has no income of its own. It takes its revenue out of the pock- cts of the people by taxation" He explained further what most citizens ought to know, but which few do know. that the only money the govern ment has of it's own is derived from customs, from sales or leases of public lands and from fines. This is some thing like one-sixth of what Is needed to run the government. The rest of the revenue required, or about three billions of dollars year, is taken from the taxpayers. And yet few people seem interested in the matter of econ omy when political campaigns are on. The appropriations possible for their districts are far more interesting to the average citizen.
 The Kansas City Star, commenting on this phase of the subject, says by way of comparison between the Amer ican people and those of other coun- tries:
 Americans are such a spend
 ing people that their government
 never has to explain budgets to
 them. It simply tells them how
 much it wants, and that's all the
 taxpayers want to know. They
 are the same Americans who buy
 things without asking the price.
 Every government in the world
 except ours goes before it's people
 with trembling when it goes to ask
 revenue. It's the most tickllsh
 job European governments have
 to face, and many of them have
 gone down to defeat because they l could not justify budget expendl-
 lures. That is because the people
 A.-..
 sions about their governments
 being rich. They know where the e revenue comes from.
 In the United States the absence of interest in the subject of government finance is discouraging, to say the least. Frequently one hears sugges- tions of canceling the debts of Flu ropean nations to this country. The interest on the debt, amounting to something like two hundred and twen- ty-five millions of dollars year, is being paid by the American govern ment. Apparently few of the Ameri- can people realize that If these debts were cancelled their government would have to pay them. The money loaned to European nations did not belong to this government. It belonged to the taxpayers who loaned it to the gov ernment, taking bonds as security fer the debt. These bonds must be re- deemed by the government So that if Europe's indebtedness to the United States was cancelled, the taxpayers of this country would have to bear the loss.
 There is some demand for reduc- ton in the cost of federal and state governments, but it is confined chiefly to those who know that extravagance by both constitutes burden, not upon the governments themselves, but upon the people who provide the funds. This will not be materially checked until the people take a deeper and more patriotic interest in government finance. The tendency of all govern ments is to spend as much as they are permitted to spend by the taxpayers who provide the revenues. There will be no check upon this policy until the people realize that the money being snent is theirs and that they have the power to call halt. During the last few years not only the federal gov ernment, but state and municipal gov ernments as well, have pursued reck- less policies in expenditures. How long this can continue without disas- trous consequences is question worthy the serious consideration of the people. They must bear the in Ievitable burdens that are sure to come unless there is decided reaction from the riot of extravaganza.
 .eKNnWN FOR HIS coon MnPKc