The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-12-22

Debt CuIlIleS, IL seems TO
be a good time to
take look at Uncle Sans debt and
see what the situation is Moreover,
1t appears to be advisable to analyZe
that debt in the light of all of the talk
that has been going around lately to
the effect that we are permitting the
erection of debt structure that will
become milestone about the neck of
the taxpayers who. after all, are the
folks on whom q government bond or
other security rests.
Let US begin by recalling that the
national debt amounted to the gigantic
sum Of S23, ,115.771 at the end of
November, and that the net result of
the security sale as of December 15
was to add approximately S225,0O0,0OO
10 that sum. Then, a second fact:
the only way the government has to
raise money for payment of its debts
and running expenses is by laying
taxes on you and me and Tom, Dick
and Harry. So the subject of the ma
tiOnal debt gets right close to home
with all Of US. Indeed. as | consider
the question of the national debt, it is
a subject that is going to interest our
children and probably their children.
too, unless there is some brake pressed
on the rate of spending.
As far as the safety of an invest
ment in government securities is con-
cerned, l entertain no fear No debt
&c 1i1-nlTr RI he mid rhor
eminent debt, owed by the United
States of America. The market quo
tations may fuctuate; the prices Of
fered may fall below the par value of
the bonds or notes or certificates of
Indebtedness which the treasury is
sues, but the security retains its safety.
And TO this I might add, when the
times comes, if it ever does, that a
United States government obligation
is no good. h money as anyone has
invested in IT. being United States
money, will have no value either. So
that phase of the situation gives me
no cause to worry.
1t is to the necessity for ultimate
payment Of these obligations, this vast
national debt, that 1 want to direct
attention. As the federal government,
like the state. the county and the city
governments, has TO go back to the
individuals and corporations for the
money, it is made to appear that some
one is going to suffer through period
of years to come.
Summarized, then, some justification
must be shown for the policies of Pres
ident Roosevelt that are resulting in
additions to the public debt that are
becoming grounds for fear. Boldly
stated, it appears the Roosevelt ad-
ministration has determined to spend
its way out of the depression. Money
is being spent like water, and it is
government money that was drawn
from the pockets of the taxpayer The
program is designed to spend enough
money to create jobs for all, or nearly
all, of the unemployed. If they are at
work, they will spend their earnings
and businesses that supply merchan-
disc and commodities generally will
have a market. To start the revival
VI lAAS LoAhCI. l4C SONC1
buying millions upon millions of dol
lars worth of supplies used in its vari-
Gus recovery plans. But repeat, this
debt has TO be paid. unless the Ameri-
can people want TO be collectively dis
honest and have their government
print paper money with which to meet
the obligation. That is plain and un-
adulterated Reputation of debt.
Which brings me to the point again
of whether it is not just about time
for somebody to call a halt. If the
nation is willing to go on and on with
spending at the present rate, we
must prepare to pay the fiddler to fur
nish the music for the dance
Up TO the end of November. which
is the last full month for which figures
are available, the ex-
Spending at penditures for emer-
High Speed gency activities for
the five months of
the current fiscal year aggregated
$500, S26.S05. OF that total, sos, 514.-
800 was spent in November alone.
which would seem to indicate that the
business of spending has only lately
started at high speed Further proof
of the increased speed of spending has
been given in incomplete statistics for
December, together with the constant
~ recurring announcements by Presi-
dent Roosevelt of new spending agen-
cies Ike the civil works administra-
ton which will spend S4O0. 100000 be-
tween December 1 and February Is,
1884.
The treasury's fluctuations of ex-
penditures by the several recovery
agencies show the following layout Of
cash between the start of the fiscal
year, July 1 and the end of November.
public works administration. SI3I.-
47S,023; national recovery administra-
ton. S1.s42, 4Sq; agricultural adjust
ment administration. SIS. 700, 2I9; farm
credit administration S40.OO0.OOO:
civilian conservation work, S119. 759.-
S66; Reconstruction Finance corpora
ton, 1854, 022, 450; Tennessee Valley
authority, S769.095; for capital of fed
eral land banks. s15.s94, $50, and Fed
eral Insurance corporation. S365,17S.
1t is impossible to afford a COMPARE
son of these figures with emergency
expenditures in the corresponding five
months ending with November 80. 1892.
because they were all included In the
general treasury expenditures until
this year. The President holds. how
ever, that these are not recurring ex-
penditures and. therefore, should not
be included in the regular budget of
federal expenditures. That is why
the administration can keep on saying
the budget is balanced. They mean
the budget of ordinary federal ex-