Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1932-12-01

How 1t Operates
=RglRaAam Braekarf
THE TREASURY

G1at uAtt III II Stfidtu WHY
Usually are done that way over ant
over again. allowing. of course, fol
proven changes. One. of the things
they do is celebrate New Year. anc
they have done it with 4 lot Of noise
and loss Of sleep for many, many
years.
fHt their government started a
new year recently. and as though
those who direct its affairs wanted
10 be the exception that proved the
rule. they did not start It'll for n
night 0f il. 1t was the fiscal year, the
frftFfey ycTr. So IN snEIk. for The gov
eminent. and ii constitutes the basis
upon which MI government functions
are operated. predicated or planned.
That new ear started, AS have
said. without any ballyhoo, and with
OUT celebration. The ballyhoo had
taken place weeks before the officials
had done their s~taying-up many
nights because instead of a ceiebra-
ton program. they had the difficult
job or laying out Il program for pay
ing the expenses of the government,
determining what those expenses
should be and deciding where the
money could be obtained for perform
Ing all of the functions which we
know rs governmental. In other
words. what those officials did was
prepare a budget Of income and outgo.
All of that was done prior TO the
new year Of which | have spoken.
The date Of this new year ame Cir
esinnstanees that Immediately preced-
et IL may be described something MS
follows. the gigantic set of books
used BY the treasury were closed ut
] 30 y. m. on June 30. They bal
anced. OF course, but 10 make the re-
ceipts equal the expenditures for the
twelve months preceding. there had
been borrowings, or money obtained
from the sale Of government securi-
Ties. such as bonds, notes. certificates
Of Indebtedness and treasury bills.
The difference between the expenses
and the regular receipts of money
that the government did not have to
return-in other words, the amount
Of the barruwin-s-constituted the
government deficit for the year.
Every agency of the government
having money to spend closed its beefs
at the same time the treasury did.
for the next day started a new fiscal
year and reckoning was to start all
over again. There were new funds
available. appropriated by congress.
for operating in the next twelve
months or until June 80, 1888.
Such was the circumstance of the
governments new year. Prior to that
time. as | have indicated, the treas
nry. which is the bank for all of the
government, had told the President
that ii was going to need a lot more
money than the tax laws then In op-
GRAFTON would produce.
Sc the President sent d message to
congress. saying In substance that
new taxes must be levied SO that the
Income of the government would be
ms great as the necessary expendi-
lures The budget must be balanced.
or as we used 10 say, we must live
within DUR income
Thus. stripped of bunk. yerblage
ferminnlngvr currents af
political explanation and e~xpostula-
ton. the treasury was forced to turn
to the people for more n
1t msr seem to the residents of any
particular township, county or state.
they are many weary miles from
that the government is
gigantic thing about which they
need not concern themselves direct
IT, but the point OF this article lis to
the fallacy Of such a view. The
government at Washington Is Just AZ
near to NIL of us as Is the ministra-
don OF the township trustee or the
Judges or commissioners by whatever
known, In the county seat town
city.
None can deny, therefore, the in1u-
exerted upon every citizen by
he treasury for the simple reason
hat IT, more than any other unit OF
he government. perhaps, touches that
institution. the pocket
book
Obviously. OF course, the treasury
ioes not get taxes wherever and
1T desires. The Constitu-
Ion fixed that matter In advance. II
aid congress should levy the taxes.
n truth however. congress has from
Inc immernorial followed the sug-
of the treasury rather close
v. since the treasury is better ac-
luainted with technical matters.
There always have been and prob
IDLY aiways will be differences. large
y political, over the proposals OF the
reasarJ for raising taxes, but those
differences are not pertinent here
So we have a new tax law which
viii tax hundreds OF different trans
Of business as well as incomes
hat the government at Washington
md all Its agencies from the nearest
o the farthest may keep on operating 4
q your Interest and In mine. And 1t
. said In the Constitution that the
reasury shall have power to collect
axes etc.