The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-09

Cn1S congress TO appropriate, Tie O
spring. Bad or good, 90 per cent o
cent of the deficit, were decided VI
DUT the message does not merely
II tell us what is to be spent before
June. 1t tells us also what is to be
spent in 1895" that is between
July next and the following June.
This is a forecast, of course, based
on estimates. But it IS the most i'm
portant part of the message, be-
cause it covers not what has been
decided upon in the past. but what
has been decided upon for the fu-
ture. It is here that the financial
program of the administration re-
veals it's fundamental policy.
The disclosure is Of transcend
ant Importance. We learn here in
definitive form that the gigantic
expenditures of this year are being
made to stimulate business recov-
cry based upon private enterprise
for reasonable profit.
The proof of this is contained in
two major decisions which the
1895" budget announces. One is
that the public works program is to
be completed, but not in any i'm
portant sense expanded.
This can mean only that the Pres
ident looks forward confidently to
the revival, with eighteen months,
of the heavy industries through the
resumption of private investment.
The other, which is even more
significant, is that the great bank
ing operation performed by the RFC
are to be completed, but not in any
important sense expanded in 1884
IS. This can mean only that the
President looks forward confidently
to a restoration of the functions OF
the banking system as the provider
of capital and that he has no plans
or intentions for setting up in
Washington a permanent manage
ment of the capital market.
THIS budget proves, as no
Il amount of theoretical specula-
ton could prove, that the Presi-
dents conception of social recon-
struction looks toward a growth Of
elf-government and cooperation
and a reform and policing of the
abuses of individualism rather than
toward a planned collectivism from
Washington.
Were he working toward any such
revolutionary idea, he would not
bring forward a budget for 1885
which is based on the principle that
the government is to retire rapidly
within a few months from the field
of contraction and financing OF cap
ital goods. This is binding COM
mitment.
For when this congress votes the
appropriations asked for in this
message. it will be the law Of the
land. Nor would he commit him
self. as he has done, to the specific
promise that six months before he
next faces the electorate in the
campaign of 1886 the budget will be
balanced because emergency ex-
penditures have ended.
In appraising the size of the debt
which the President intends to
create in the course of the next
eighteen months, we start, then,
with the basic fact that what the
President intends, and has commit
ed himself to, is the rapid decrease
of government expenditure and a
concurrent rapid increase of ex-
penditure through private invest
ment. The question then is: Can he
do what he hopes to do?
1T is the fashion to say that the
L deficit is being incurred in a
war against depression. That is its
unmistakable purpose. But war
deficits always have had serious
consequences. They create a ire
mendouS demand for goods, raise
prices and create new prosperity;
when the government stops spend
ing there is after every war big
slump. War deficits, also, are in
CURED in such way as to create
obligations, chiefly to veterans,
which in our history tend to grow
rather than diminish, so that they
leave behind heritage of expand
ing expenditures.
We have, therefore, to ask our
selves whether we are creating an
prosperity by government
spending and whether under AAA
and CWA and other Establishments
we are creating vested interests
which will tend to become perma-
nent.
Before any one can be assured
about the soundneSs of the finan-
cial program he must make up his
mind on these two points: Are we
getting a recovery which after 1885
will be maintained, as the President
promises. without emergency ex-
And, are we fastening
upon the treasury large bodies of
influential voters who will claim
they have established rights for all
time to come?
If we could answer those two
questions conclusively we could
really appraise the financial future.
Copyright. 1891
CHICAGO FRUIT MARKET
Q,s T.,ffe6 Drees