, 1924-08-14
NEARLY A BILLION
FOR INTEREST

WASHINGTON, AUG. A. - The
largest single item of expense to
which the National Government is
nov subject is interest on the public
debt. In round numbers, this item
called for $940, 900, 900 during the
fiscal year ended June 80, 1924. This
was a reduction of $40, 900, 900 as
compared with the previous year and
thanks to the Jealous efforts of
President Coolidge, Secretary of the
Treasury Mellon, and Director of the
Budget Dawes, together with the ap-
preparation committees of Congress,
there will be a further cut in this
item next year.
The only way to cut the expendi-
lures for interest is to cut the inter
est bearing debt, and this is a task
to which the Republican administra-
ton has bent its energies with un-
ceasing determination. The only
way to cut the debt is to save money
from the revenues, and this the adj
ministration has been doing. The
money saved from the is
promptly applied to the payment of
the debt, %whereupon the saving in
interest follows.
That is a plain matter of good
buSliCSS"d polits thal Soou puSliSoo
men pursue in their private affairs,
although few public officials adopt
such a source. From the very be-
ginning of the Republican regime, re-
duction of the debt has been one of
the prime objects. In fact, the re-
trenchment policy began before the
Inauguration of President Harding
in 1921, for the Republicans got con-
troll off Congress in 1919 and cut 3d.
100000, 900 out of the demands of
the Democratic administration. Pres
ident Harding pushed the economy
movement with ardor, giving the
first Director of the Budget, General
Dawes, his most cordial support in
vigorous action for the curtailment
of expenses. The same backing was
given General Lord, who has been
no less Jealous in the same direction.
Hundreds of millions of dollars have
been saved in expenditures and the
money applied to the reduction of
the debt.
The interest-bearing debt reached
its height in August, 1919. By fore
ing reduction of expenses during the
last two years of the Wilson regime
the Republican Congress saved
money which was applied to- the debt
while the Democratic President was
still in office. Since then further
savings have been correspondingly
applied so that the total debt has
about $26.000,0 600, 900 to about
S21 600, 900 900.
What has been accomplished in
the past twelve months is shown by
the statement of the public debt on
June 80, 1924. This statement
shows that the net debt-the gross
debt less the balance of cash in the
general funds $21.015,4O1,4S1 as
compared with $21. 97S,76S,244 one
year previous. This shows a reduc-|
tion in the net debt OF 1868. 00O, 900.
The reduction in the gross debt
amounts to a little over a billion
dollars.
Records do not show the rate OF
interest borne by the bonds that were
paid off, but 1t was probably about
4 1-2 per cent. as that Is the rate
most of the bonds bore. A reduction
of a million dollars in the debt will
mean a saving of $42,50O, 900 a
year, or, On an average, about $500
per family per year on this one item.
or course each family does not real |
ize that 1t has beer paying this on
account OF interest. for the money
to pay it is collected largely through
income taxes and the people who
pay the income tax add 1t to the
price OF goods or services. Neverthe-
less. the saving has been accmoplish-
ed by the Republican administration
and that and other savings pave the
way for reductions of taxes. There
was such a reduction in the recent
session Of Congress, and. II the econ
omy program car be kept up. there
will be further reductions In the
future.
With a record such as this, 1t Is
natural for the people OF the coun-
try to approve the record OF the
Coolidge ndministration and to ask