The Western news. [volume] (Libby, Mont.) 1933-current, 1933-12-21


the administration can keep on saying
the budget Is balanced. They mean
the budget of ordinary federal ex-
penses, household expenses, II you
want to call them that.
But, getting back to the point from
which we started, we find that all of
these extraordinary expenditures come
out Of the treasury and the amount by
which the expenditures exceed the In
come has to be borrowed, and once
borrowed 1t becomes part of the pub
lie debt OF the nation.
The following tabulation shows In
Just what manner the nations public
debt has fluctuated
Debt since about the time
Punctuation of the declaration of
war, by the United
States, In the year OF 1917:
February II. 1917-S1, 2S2. 044,346.
August 81, 1919-$26.5 500, 701 ,648.
June 80, 1o2o-s16o31 ,197,748.
June 80, 1o30-S16, 185, 308, 300.
June 80, 1931--S1G,801, ass, 143.
June 30, 1932-s19. 487, COS, 768.
February q, 1888 $40. 1874, 729, 200.
June 80, 1885,. 53s ,672,56o
November l, 1033-$23, 1874, 115,771.
Thus, 1t Is seen that the debt reached
Its peak almost one year after the
armistice had ended hostilities In Eu-
rope, having grown more than $780,
OO0,0OO.0OO 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 q 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 APP
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,-
000,00o,000.
The figures given, being for fiscal
years ending on June 30, reflect the
first impact OF the depression in the
fiscal year ending June 30, 1881. Profits
of prosperous years continued to that
time to pile up as the base for taxa
ton of incomes, but by the time an
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, a 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 ths
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. The,
| profess to see signs OF that improve
ment, signs that have never failed
as indicative of better times Ever.
one hopes the leaders are right, bu
only time will supply the answer.
| And while we are discussing thu
/ dIstasteful subject of debt, we ma.
| as well call atten
/ Coming ton to the assurance
| Neu Taxes that there are 90
Ing to be new take
laid by the next session of congress
The new revenue that Is coming iron
the taxes on liquor cannot supply al
of the new funds needed even for bal
ancing the regular budget, or tn
household budget Of the government
as we named 1t earlier. So, back t
the taxpayers we 60 for more money
1t Is true that some of the extr
taxes that were enacted by the las
extraordinary session of congress wi
be taken off. Their elimination wa
contemplated If and when the prohib
ton amendment was repealed. 1t wa
thought then that there would nc
need to be additional revenue for mair
tanning the ordinary budget on a
even keel; the economy program Whic
the administration drove through col
gress was going to save enough |
permit a balanced budget, and ther
would be other savings, as wei
There we're savings. many Items {
them. But the cold truth is that til
calculations as to the reductions
expenses which were possible WEI
"a bit visionary.
Congressional leaders have starte
on a rampage shouting soak II
rich |" They have done that befor
The records show they have put Il
come taxes nearly up to the SIX
| and when they did the revenue resul