Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-03
COST |
DECLARED HIGHER.
Taxes Raised as Expense Of
Federal and State Estab.
ishments Gains. III

special Dispatch to The star.
NEW YORK. August s.-aising costs
Of Government. innicting heavy tar
burdens, are proving q serious obstacle
to the restoration Of economic pros
perity, In the opinion Of many compe-
tent Observers, according to IN article
in the July number Of the Index, pub
lished by the New York Trust Co.
A serious obstacle in the development
Of popular interest in the subject, ac-
cording to the article, Is that the tax
burden is not felt directly by the pub
lie. although ultimately and indirectly
the cost falls upon the majority Of the
people In, the country.
Record Appropriation.
The article says, in part:
I'm the face Of diminishing receipts
Congress. at the last session, appropri-
ated the enormous sum OF 80 ,240, 49,
315.60-the largest amount ever appro-
priated ct single session In peacetime
In this or any other country. The fiscal
year ended June 30 closed with o deficit
Of 5000, 900 900 and further large def
cit Is clearly indicated for the current
fiscal year. fa
governmental expenses have risen, 1t Is
notable that the deficit recorded In the
last fiscal year exceeded the entire
amount Of Federal expenditures charge
able against ordinary receipts in pre-
war years. In the period from 1900 to
1915, the last year before the United
States entered the World War, the
highest Federal expenditures chargeable
against ordinary receipts were In the
fiscal year 1915, when they amounted to
$76O, $50, 802.
Federal expenditures chargeable
fiscal year 1880 to no less than s3.sl4.-
h2, 487. That Is to say, the total amount
increased more than five times in the
is years between 1915 and 1890.
Allowance must be made for the fact
that the 1880 total includes annual ex-
penditures for interest on the public
debt and for public debt requirements,
due, In q large measure, to the extraor-
binary costs Of the World War. How
ever, these are costs which the Nation
has to bear, and even If both items,
accounting together in the year 1880 for
an expenditure Of 1919 ,216. against
only $40, 900, 1858 in 1915, are completely
eliminated. the costs Of Federal govern
mental functions increased by more
than $40 per cent in the IS years"
State and local government costs have
increased uninterruptedly year after
year, the article says, pointing out that
Of the gross expenditures of all govern
mental bodies In the United States in
1928, which amounted to $12,609, 000,-
900, the Federal Government accounted
for SIS per cent; State governments,
las. and local governments, 81 per eent.
The article continues:
Increase In Taxation.
1.-THE effect Of increasing govern
mental costs Is reflected in growing
State and local Indebtedness and an all
around increase in taxation by Federal,
State and local governments alike. "
Competent observers Of the tend
encies which have been outlined
generally agree that the time has ar
rived when determined measures are
necessary to deal with the problem OF
growing public expenditure and indeb-
tsdness and the mounting burden Of
taxation which has followed from them
"A more even distribution of taxes
would alleviate the burden to some ex-
tent, but taxes. after all, are the effect
Of governmental costs and not their
cause. II conditions are to be remedied,
they must be attacked at their source.
In other words, 1t will be essential for
governmental bodies 10 circumscribe
their own activities, budget their ex-
penditures with greater care, and, In
short, stop squandering money which,
in the last analysis, they hold and dis
tribute in trust for tie public they
represent"