Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-11

Differences Of opinion are voiced by
the country as to the effect on bust
ness conditions. present and future, OF
the recent bond issues by which the
Federal Government obtains loans
which represent more than q billion
dollars Permitting the fat years to
pay for the lean years is put forward
in arguments favoring the bonds. sup
porterS pointing to the great reduction
in the public debt that hes been &C
complished since the World War.
further contention for the desirs bility
of this method Of eliminating the deflclt
IS that this will make lighter burden
for the Nation than would increased
tax rates. with possible consequent
retardation OF business recovery. Those
who oppose the idea base their oolec-
lions on the withdrawal from business
and industry of the money used in The
purchase Of the bonds and the placing
upon the future the burden OF relieV-
ing the deficit. Many see evidences of
plentiful money and confidence in the
country's soundness in the oversub-
scrlption OF the issues.
There is no dearth OF money" says
the Newark Evening News. Banks
are bursting with 1t. Announcement OF
the oversubscription comedies with
revelation that this country now has
almost half the worlds total supply OF
gold" The Cleveland News sees
Government desire Ito shop about
while interest rates are low, and drive
a good bargain for the Treasury" and
ADDS that there is consistency in
allowing the public debt to absorb the
deficit. Just as it once proflted by sur
plus which was not directly turned
back into the pockets of the taxpayers
1T will be an easier burden for the
Nation to carry thinks the Philadel-
phia Evening Bulletin, than such an
increase in taxation as would make up
the Treasury deficit accumulated up to
the first of the present fiscal year and
nearly doubling in the current IL
months. The Government has been
borrowing at the lowest rate of interest
in it's history. Secretary Melons pro-
gram is recognized as sound financing.
and 1t Is based on the expectation,
which even the confirmed pessimist
confesses IN his last analysis, that the
United States is coming back. and that
it has resources and generally Is COM
petent to pay off all its obligations.
Taxes on business" argues the
South Bend Tribune. will not alone
be appreciated also that an increased
tax burden might retard business re-
covery." The large subscriptions are
called by the Tribune AN impressive
demonstration of confidence which may
convince the Hoover administration
that further borrowing will be more
practical than extensive Federal tax
increases" The Hartford Times holds
that 1T Is reasonable to make the fat
years feed the lean ones by borrowing
in anticipation OF the return Of better
fe hat
Mr.. Mellon Is probably pursuing the
more popular course" and that zone
can at least make out plausible case
for borrowing funds at a low rate of
interest rather than extracting almost
billion dollars from increased tax
ation.''
This is O healthy, businesslike way
to meet the Nations fiscal situation, 1t
would SEEM" concludes the Pasadena
Star-NeWs, remarking that when the
country was in the midst of great pros
perity Secretary Mellon wisely retired
the national debt very substantially
until the Treasury is seven years ahead
OF schedule In debt payments" The
Lexington Leader points out that 1.-THE
Government has reduced the national
debt by about billion dollars a year
so that even O loan of one billion will
be only a fractional addition to the
debt IS 1t stands"
n Il
"In such slack time a. the present y
states the Charleston Is. c. Evenine
Post. ut is reasonable enough that the
Government should distribute its in
debtedness over the future rather than
add to- the tax burden now. During
the past 10 years the funded debt has
been heavily reduced. We have paid
of probably q third Of the huge sum
We invested in the World War.
There will be mare issues like this. nc
doubt, but the ~ Of them all may be