The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-12-22
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National Topics Interpreted "a fYMYxA
by William Bruckart kp<1$sW
by William Bruckart

come has TO be borrowed, and once
borrowed IT becomes part of the pub
lie debt of the nation.
In fairness, il must be said that out
Of the billion in borrowings in Decem-
Der, S72S,OO0,O0O was for refunding.
That is. debt in that amount was ma
turing and so new securities were is
sued in their place, but there was
$115,0O00O0 borrowed for use In pay
ment of interest on other public debt
and the remainder of the borrowings
will go into the sluiceway from which
the emergency spenders get their cash.
just what manner the nations public
debt has fiuctuated
Debt since about the time
Punctuation of the declaration of
war, by the United
States, in the year of 1917:
February q, 1917-S1, 80, on. 346.
August 81, 1919-S26, 500, 701, GAS.
June 80, 1929-$16, 931 ,197, 74S.
June 80, 1930-S16, Isl, 3OS, 800.
June 80, 1931-S16,s O1, 4S5, LAB.
June 80, 1932-S19, 49,, OO9, 766.
February 81, 1933-s20, 934, 729, 200.
June 80, 1933-S22, 53S, 81, $50.
November 1, 1933-S23, 534, 115,771.
Thus, it is seen that the debt reached
its peak almost one year after the
armistice had ended hostilities in Eu-
hauirr hon cox
0O0,OO0,OO0 in the 80 months after the
declaration of war;
Immediately after the peak was
reached the job of selling surplus war
materials and salvaging the wreckage
began to take place. War profits,
against which wartime excess profits
taxes and high income taxes were
operating, continued to furnish rev.
enue. There came a few lean years,
but unprecedented prosperity followed
them and under the insistence of An
drew w. Mellon, then secretary of the
treasury, all funds available were ap-
piled to reduction of the debt until,
when the depression cast its fog Of
death on business, the public debt had
been whitfield down more than S10,-
OO0,OOOOO0.
The figures given, being for fiscal
years ending on June 80, reflect the
first impact of the depression in the
fiscal year ending June 80, 1881. Profits
of prosperous years continued to that
time to pile up as the base for taxa
Of Inn Int NV hn INN
other twelve months had rolled around,
the treasury, like the rest Of the coun-
try, knew from actual experience what
was happening to employment and
business.
Then began the attempts to spend
our way out Of the depression. pol
icy that has gone on and has been ex-
banded with each succeeding month
until now money is flowing out of the
treasury at rate almost equal to the
days when the nation was fighting hui
man enemies instead of the unseen,
yet clearly felt, enemy, the depression.
You ask where we are going, and /
answer that none can tell at this mo-
ment. Those in the positions of re-
sponsibility believe they are on the
right track. At least, they hope they
are, and, consequently, they are peg
ging their faith on an upturn in bust
ness early in the new year. They
profess to see signs of that improve
ment, signs that have never failed
as indicative of better times. Every
one hopes the leaders are right, but
only time will supply the answer.
And while we are discussing the
distasteful subject Of debt, we may
as well call atten-
Coming ton to the assurance
Mem Toxes that there are go
ing to be new taxes
laid by the next session of congress
The new revenue that is coming from
the taxes on liquor cannot supply all
of the new funds needed even for bal
ancing the regular budget, or tie
household budget of the government,
as we named it earlier. So, back to
the taxpayers we 90 for more money!
It is true that some of the extra
taxes that were enacted by the last
extraordinary session Of congress will
be taken of. Their elimination was
contemplated If and when the prohibi-
ton amendment was repealed. It was
thought then that there would not
need to be additional revenue for main
tanning the ordinary budget on an
even keel; the economy program which
the administration drove through con-
gress was going to save enough to
permit a balanced budget, and there
would be other savings, as well.
There were savings. many items of
them. But the cold truth is that the
calculations as to the reductions in
expenses which were possible were
a bit visionary.
Congressional leaders have started
on rampage shouting soak the
richl'' They have done that before.
The records show they have put in
come taxes nearly up to the sky,
and when they did the revenue result
ing therefrom dropped of. The rich
mans money went into hiding In Sc
curities that were tax exempt such as
those issued by your local municipality
and so on. or into securities of the
treasury on which there are no taxes.
From what have been told. the cur
rent movement by the congressional
committee is headed exactly in the
same direction and toward the same
result.
So, we have the singular situation.
then, of the administration trying to