The Waterbury Democrat., 1932-07-27

(Copyright, 1882, by United Press)
 Washington, July 27-(UP)- It will take one half of one per cent of the entire national income to pay the government four per cent interest on the $7,664,615,- 2O1.O1 1t has invested or has po- tentially available for. investment in American business.
 That means that i've cents out of every ten dollars received by every man, woman, child, business or corporation in the United States, will go for interest to the new, silent partner in American enterprise. Out of every $2,500 income $12.50 will go for such in- terest payments.
 The, citizen proDably never will realize this. for the payment will not be made in taxes. The govern. ment, through>loans to agriculture, to business through the Recon- struction Finance corporation, and through other channels, has taken it's interest in business as a lend-. CT of money, not as a stockholder. But the interest has to be paid, and is paid indirectly out of the national income. Just as interest is paid to J. P. Morgan and com pany on the bonds of American industry that it holds.
 A survey by the United Press has shown that the government, since 1916 when 1t departed from its traditional policy of keeping vested in American business $3,- 096, 1928, ,6s7.01 through the Re- construction Finance corporation, the home loan banks and other agencies it is ready to invest a potential $4.56s. s.1s5,614 additional. That would make an aggregate in. vestment of $7,664,516,2o1.01.
 To pay interest at per cent on such a sum will require S308,5s0,. 60S.04 annually. The national in- come according to the department of commerce, for the year 1880 was $60,000,o0 0,000. The $30e,. 680,608.04 required for a four per cent return on the governments share in American business Is one half of one per cent of that sum. {
 Perhaps the $1,S4S,841,200 mort. gage the government has on agri- culture can be reduced to more easily understood terms.
 In financing agriculture the gov. ernment's investment stands like this:
 Outstanding loans to farmers (exclusive of farm mortgages) $96, 6,62S,20O.
 Loans for farmers cooperatives (farm board) $170,000,O00. <
 Loans on farm mortgages (farm loan board) $1,156,707,000.
 Intermediate credit bank loans (farm credits) $110.e0e,00O.
 Invested in grain and cotton stabilization (farm board) $315.- 0e0, 900.
 Total. $1.s4s,s41.200.
 That sum is equal to six per cent of the aggregate value of all the farm land in the entire United States. The department of agricul- ture estimates that the farmer is in debt to an aggregate of $e,46S,- s26,000. On the basis of that fig- ure, roughly stated, the govern ment holds one fifth of the entire loan business of the agricultural industry.
 A glance at what 1t will require to maintain this investment of the in agriculture, may be even more revealing.
 If the government is to get four per cent interest on its investment It will require $75.s53,s4s out of the nations farm income to pay 1t. The aggregate income of agricul- ture, including the livestock inc dustry and the income from forest products of all kinds. in 1929 (the latest department of agriculture figures evailabie) was s10,14Cs- 720.ooO which means that, on the I basis of that figure. 1t will take three quarters of ono per cent of the total cash income of aericul- Iure, livestock and forest product industries to pay the bill.
 Stated differently, it means that rom the borough. Mir Greens fa- her is seriously iiI at his home in |
 It was thought that the commit | GO would set q date for tho hold | ng of the party caucuses to name | iCieNnteg Co tua various foii Gon~