White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1933-02-16
OuyGoperumeut
How 1t Operates
BY William Brxckart-
THE TREASURY

\ MERICANS, ordinarily. run rath-
"a er true to tradition. Things that
are done once in q certain way
usually are done that way over and
over again, allowing, Of course, for
proven changes. One of the things
they do is celebrate New Year, and
they have done it with a lot Of noise
and loss of sleep for many, many
years.
But their government started a
new year recently, and as though
those who direct it's affairs wanted
to be the exception that proved the
rule, they did not start out for
night Of it. 1t was the fiscal year, the
money year, so to speak, for the gov
eminent, and it constitutes the basis
upon which all government functions
are operated, predicated or planned.
That new year started, as l have
said, without any ballyhoo, and with
out celebration. The ballyhoo had
taken place weeks before; the officials
had done their staying-up many
nights because instead of celebra-
ton program, they had the difficult
job of laying out 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 as governmental. In other
words, what those officials did was
prepare budget of income and outgo.
All of that was done prior to the
new year Of which l have spoken.
The date of this new year came. Cir
cumstances that Immediately preced-
ed It may be described something as
follows: the gigantic set of books
used by the treasury were closed at
80 p. m. on June 80. They bal
anced, of course, but to 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 owings-constituted the
government deficit for the year.
Every agency of the government
having money to spend closed its books
at the same time the treasury did,
for the next day started 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 l have indicated, the treas
ury, which is the bank for all of the
government, had told the President
that it was going to need lot more
money than the tax laws then in op-
Grafton would produce.
So the President sent message to
congress, saying in substance that
new taxes must be levied so that the
income Of the government would be
as great as the necessary expend-
lures. The budget must be balanced,
or as we used to say, we must live
within our income.
Thus, stripped of bunk, verbiage
and Technology, cross currents of
political explanation and eXpostula.
tion, the treasury was forced to turn
back to the people for more money.
1t may seem to the residents of any
particular township, county or state,
that they are many weary miles from
Washington: that the government is
some gigantic thing about which they
need not concern themselves direct
~, but the point of this article is to
show the fallacy of such view. The
government at Washington Is Just as
near to all Of us as is the minstra-
ton of the township trustee or the
judges or commissioners by whatever
name known, in the county seat town
or city.
None can deny, therefore, the influ-
ence exerted upon every citizen by
the treasury for the simple reason
that it. more than any other unit of
the government, perhaps. touches that
well-known institution, the pocket
book.
i Obviously, Of course, the treasury
does not get taxes wherever and
whenever 1t desires. The Constitu-
ton fixed that matter in advance. 1t
said congress should levy the taxes.
In truth. however. congress has from
time immemorial followed the sug-
gestions of the treasury rather close
a ly. since the treasury is better ac-
quainted with technical matters.
There always have been and prob
ably always will be differences, ldrge-
ly political. over the proposals of the
treasury for raising taxes, but those
differences are not pertinent here.
So we have new tax law which
will tax hundreds of different trans
actions of business as well as incomes