The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-10-26
A Deeper Deficit Or

1nls campaign IN It's latter phases is becoming
of immense figures federal finance that are of
acute Importance to all of us
Governor Roosevelt and Speaker Garner have
claimed the size of the impending treasury deficit will
force congress to balance again budget that never
really was balanced. Now Treasury Secretary Mills
has admitted indirectly the deficit which conservative
independent tax experts previously had estimated will
be about billion dollars ION paper"
What the facts?
The treasury, already running behind by more than
half billion dollars, is confronted with the strong
possibility that yield from the new nuisance taxes may
be some $2OOOOOOOO short by next June Yield from
the new and high income taxes also may be short
To this $2OOOOOOOO should be added the $322Ooo-
600 emergency appropriation for federal construction
The result forecasts an operating deficit of at least
$5OOOoOOOO.
If foreign debtors fail to pay, and if congress
this winter is called upon to enact further measures
for relief of unemployment business and agriculture
the deficit will be much larger
The reverse side of this problem concerns itself
with federal outgo.
The Democratic platform pledges rs per cent
reduction in expenditures.
Roosevelt has made this same promise, but has
failed to say how, and when, and where. Hoovers
Scong at the Democrats rash promises" of looping
off billion, pledged himself in the same breath to
reduce appropriations by billion and half. And
he promised this reduction based on 1892 appropria
tons.
His own partisans started claiming last July that
even in this fiscal year, appropriations reduced
billion dollars below 1882
How can any such promises be achieved honestly?
This fiscal year appropriations total more than
$4,OOOOO0OOO. They include more than $9Oo,oOo,OOO
for relief of World war veterans, and more than
$7OoO00OoO for the army and navy, including $780,
100000 for nonmitary activities of the former.
Now Roosevelt must realize that if he is to ap-
proxmate his goal it is these two appropriations that
must be slashed. President Hoover, apparently, has
that realization But he stands, usual firmly
against reductions in appropriations for the army
and navy and reductions in veterans relief he says
will mean gross injustice"
Putting claims aside, where congress intent
upon economy turn to accomplish it?
1T may chip off a few million dollars here and
there it may renew the federal salary cut and cut out
a bureau two. But failing general reorganiza-
ton of governmental machinery which will take
much thought and much time the only big reduc-
tons possible in the three items which Hoover
will not cut and Roosevelt hasn't mentioned with
clarity.
But even if these three appropriations are re-
duced drasticaly, the saving of billion out of them
is practically impossible Hence it would appear that
the budget not be balanced by economies alone
as Mills indirectly has promised
W. must turn, then, to additional taxes.
The income rates already are as high as reason
aosy expected under present conditions and
from the present congress. The sales tax was de-
feated decisively at least twice.
The only important remaining source of new fed
eral is beer This beverage if permitted to
have sufficient alcoholic content to assure steady
consumption, will yield from $2OOOOOOO0 to $SOOO0o,-
600 year, if taxed at say Sc barrel.
If more states relaxed their unpopular dry laws
and the tax we're increased moderately, perhaps
$4o00oO00o to $5oooOoOoo might be realized Roose-
welt favors such a beer tax Hoover has said nothing
about it.
While even the latter amount would not balance
the budget, it would improve the treasury's con-
diton as to eliminate any further immediate fear of
countrys finances.
The security Of your savings and the security of
your job depend in large part upon solvent feder-
al government, whose credit is perfectly sound.