Evening star., 1934-08-29

able. as will those in the first group,
for reduction of the national debt.
But we may note. while we are TAX
ing an inventory of our position, that
the Governments share in the net
assets of this second group has in
creased by S766, 100000 during the
present administration.
We may also note, outside of the
present inventory, other very real
and tangible assets in the form of bet
ter roads, better housing, huge new
dams and power plants. modern pub
lie buildings and other projects which,
financed in whole or in part by Fed
eral funds, have increased the real
wealth of the country.
Finally, to complete the picture, it
needs to be pointed out that the Gov
ernment has, in addition to its pub
lie debt, a contingent liability on OBJ
legations issued by the Home Owners
Loan Corp and by the Federal Farm
Mortgage Corp. But these obligations
were issued in exchange for mortgages
on homes and farms, conServatively
appraised at values in excess of the
amount of such obligations.
Let me sum up at this point and
recapitulate the figures 1 have used
in this Stock-taking of our position :
The gross increase in the national
debt between March 4, 1893, and June
80, 1884, amounted in round numbers
to $4,000, 100000. Against this gross
increase we can offset, either now or
ultimately, the following assets:
Cd An increase in the Treasury's
cash balance of 81 600 900 900; CD
the profit" of S2,8O0 100000 result
ing from the reduction in the gold
content of the dollar; 90 the increase
in the net assets of the agencies wholly
owned and financed by the Govern
ment, amounting on June 30, 1884. to
81 ,095 900 900. This is wholly aside
from an increase in the capital in
veStment of the Government in
agencies which are partially financed
by funds raised outside of the Treas
ury.
From this survey of our assets and
liabilitieS-thiS inventory of the Gov
ernment's financial position at the
close of the last fiscal year on June
3O-let us turn now to the new fiscal
year, beginning July l, 1894 We find
that in July and August, the first two
months OF this new year, the Govern
ment's expenditures continued to ex-
ceed its revenues and hence the ma
tlonal debt continued to increase. But
this had been anticipated. Let us note
the landmarks by which we have been
chartlng our course.
One Exception in Plans.
The President estimated in his first
budget message to Congress. that the
national deficit, including both ordi-
nary and emergency expenditures,
would amount during the six months
from January to June, 1884, to about
$4,000 900, 900. He also estimated
that the deficit for the II months
from July, 1884 to June, 1885. would
be about $4,000, 900 900. The total
deficit thus forecast for the 18
months from January, 1884, to June,
1935-the 18 decisive months in
which the Federal Government ex-
pected to be called upon to meet
both the heaviest expenditures for re-
lief of unemployment and the largest
expenditures in its recovery program
W ~O,OOOyOOOsOOO.
This is the basis on which the ad-
mlnlStration planned last January
and, with one exception, it is the
basis on which funds were requested
OF Congress. The exception consists
OF an additional $525, 1000, 900 appro-
priated for drought relief. So severe
drought could not possibly have
been foreSeen when the budget esti-
mates were prepared. The President,
therefore, requested an additional ap-
preparation for this purpose But at
every other point, requests for funds
were held strictly within the $1,000
100000 estimate. In this policy Con-
gress co-operated.
Six billion dollars, then, was the
estimated deficit for the six months
from January, 1884, to June, 1884,
and $2,000,00 600 for the IL months
from July, 1884, to June, 1885. How
large deficit did the Government
actually have for the six months from
January to June, 1894?
Some of our plans moved into action
more slowly than had been anticipat-
ed; emergency expenditures were &C
cordingly less than had been forecast.
and the deficit for this period was
about three billion dollars instead of
six. Authorization has, therefore, been
carried forward into the new fiscal
year to spend the three billions which
were not spent in the period from jan
uary to June, 1884, plus the added pro-
vision for drought relief.
Whether we shall actually spend
these three billions, as we'll as the ad-
ditional funds which the President
estimated would result in a deficit of
two billion dollars in the fiscal year
ending June 80, 1885, will depend upon
developments which cannot be fore
seen at this time. But, even If the
deficit for the new year, exclusive of
drought relief expenditures, should
reach five billions instead of two, the
combined deficit for the period of 18
months from January of 1884 to June
of 1885 would still be no more than
the eight billions on which we orig
lnally planned.
A word in conclusion. If after listen
ing to my talk you have any detailed
questions relating to what 1 have said,
I hope you will feel free to write to me-
Good night and thank you.