The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-14
U. S. net DEBT
UP III BILLIONS
VIA NEW DEAL
Gold Profit, Higher Balance,
Loan Assets 0ffSet-to
Big Increase.
BY HOWARD CARSWELL
Times Special Writer

NEW YORK, Dec. 14.-While the
gross interest bearing public debt of
the United States has scared rough
ly S6,200,000,0O0 since the launch
ing of the New Deal year and a
half ago, the ultimate net burden
to taxpayers thus far Gas Of Sept.
30) has increased only about ST.
095, 100000, check-up Of Treasury
figures indicated today.
When the Roosevelt Administra-
ton assumed Office on March 4
1888, the gross public debt stood at
$21, 1000, 100000. In the Is months
of grand scale spending for national
recovery the public debt mounted
rapidly to $27,200000,00O en- last
Sept. 80.
However, as Secretary of the
Treasury Morgenthau has pointed
out. a great proportion of funds ad-
vanced ultimately should be repaid.
The United States Treasury cash
balance was $2O0,00O,OOO on March
4, 1888. BY Sept, 30, 1884, this had
increased to ST, 100000. The diff
ference is seen to be 200 ,000, 1000.
Gold Profit Held
The easury'S $2,800,000,0 900
profit" on. it's gold holdings re-
mains under "lock and key" but
will ultimately be used to cut the
debt. Most of this profit" is segre-
gated in the Treasury's stabiliza-
ton fund.
Total assets of the administration
recovery agencies wholly owned and
financed by the Government have
shown an increase of $1,105, 000,0 900
between March 4, 1888, and Sept. so,
1884. These agencies include the
Reconstruction Finance Corp, the
Commercial Credit Corp, the Ex-
port Import banks. the Public
Works Administration, the regional
agricultural credit corporations,
production credit corporations and
"other" agencies, including those
making crop loans.
These assets consist, for the most
part, of preferred stock and capt.
tai notes of banks, cash, !nvestp -ntS
and so on, as we'll as loans to pub
lie and private borrowers.
Other Assets Figured
Assets of those New Leal agencies,
which are financed in part by sale
of their own obligations to the pub
lis, figure less Importantly in the
situation. In this group are the
federal land banks, the federal inter-
mediate credit banks, the Federal
Farm Mortgage Corp, the home
loan banks, the Home Owners Loan
Corp, banks for co-operatives, the
federal savings and loan associations
and the Federal Deposit Insurance
Corp.
These assets will not be available
for ultimate reduction of the ma
tional debt. However, it is note
worthy that their net assets have
increased by over $2,500,000, 900. The
Government has a contingent liabil-
ity on the bonds of the HOLC and
the Federal Farm Mortgage Corp,
which have been exchanged for
mortgages on farms and homes.
Offsetting Factors
Ofsetting the $6,2O0,O0O,OOO in
crease in the gross national debt
are the three aforementioned fac
tors. They are:
l. The increase in treasury cash
balances of $1,200,000,000 between
March. 4, 1888 and Sept. 80, 1884.
2. The treasury profit on gold,
which amounts to 80O,000,000.
8. The increase in assets of the
wholly owned and financed govern
mental agencies. This increase
amounts to $1,105, 900, 900.
Thus $5,105, 100000 offsets most of
the $6,200,000,000 increase in the
interest bearing gross national debt
between March 4, 1888, and last Sept.
80. 1t is the difference of $1,105,-
100000, thus far, which must be as
sumed as the future burden. OBJ
viously, such figure is rough APP
Proclamation and is based on the as
sumption that the Government ulti-
mately will recover the many mil
lions of dollars advanced by its loan
ing agencies.