The border vidette., 1934-01-20
ECONOMIC H.aHlsoHIS
LIS 81

I Is 81
Short, sweet, snAppy-thAts
the general forecast for the pres
eut session of Congress. Unless
there'a a terrific reverss! in the
attitude of the members, the ex
ecutive legislative honeym 10 o o d
will go much 50 did the last ses
sion. The least optimistic esti
mate places MIR. Roosevslt's mar
! 1in Of ccntro! as being 3 little
better than two-ihirds IN each
house. It will probably be lar
ger than this, inasmuch 80 q
nun Der of Democratic senators
| srd representatives who have
been criticising Administration
measures rather bitingly, are
sure to fall in love when roll
call'time comes. When it comes
to enforcing party regularity.
the Democratic leaders always
have been exceptionally good.
Tne Republican atti ude 10 In
teresting. Neither house is over
populated with Republicans and
the leaders Aren't going to take
chances OF further reductions in
strength when the elections roll
around once more. Strategy
will be to remain fairly quiet, to
cooperate with the President, to
keep an eye out for changes in
the dow OF public opinion. A
strange theory IL the main cause
of this. The press correspon
dents, OF both Administration
and opposition newspapers. .prac
tically unanimously report that
in their journeys about the couu-
tay, they tiod disappointment IN
the workings Of the recovery
progrsm, among the bulk Of the
| voters-snd fnd also that Mr..
Roosevelt's personal popularity
is unimpaired, 10 perhaps greater
than ever.
MIR. Rooseve!t's spsech to Con.
gres7 was about what it wac OK
pected to be, He expressed the
belief that his measures were
getting somewhere, said recovery
wasactually on its -May.=f0recast
that, in the main. : the present
program would be continued un
changed. The speech was for
ensic2lly persuasive, n o.stly
phrassd, "a always, and met en-
excellent res ponse.
Whsu 1t comes to one matter.
however, Congress will not fnd
the sailing so clesf a. it would
ike. That matter can be ex-
pressed in one word: Budget.
Both houses will encounter pres.
sure on one aide for tax reduc
,ion, on the other for Admins.
tration demands for gigantic
appropriations with which to
carry on.
Highest national debt in bis
tory was touched IN wartime
$26 600. 600. Highest peace time
debt exists now: $2S. 600, 900.
Best Ruess is that when this ex
traordinary fiscal year ends 10
Jund, the debt will have caught
up to the war level. aud will be
leading it by the handsome mar
gin of three billions.
However. that isn't ali. The
Administration plans to raise
SIC, 900. 900 eco within the next
ak months BY bond sales On in
fstion. % January 5. Presi
dent Roosevelt started still 90
other move which may increase
the cost Of the recovery program
by as much 40 $1,000, 900. 900,
which would bring the national
debt to $50. 600, 900, 900 in 1885,
instead of the $23, 200. 900. 600
forecast in the budget message.
Tho potential Increase comes
from two proposals-a govern
ment guarantees OF payment Of
the principal of the $4,000, 600,
COO of Federal Farm Land Bank
bonds authorized in the spring
for mortgage re6napcipe: 3
similar guarantee of the 81 GOO,
COO, 900 of Home Owners Loan
Owners's Loan Corporation
bonds, whose Interest is COW