The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-28
IT BILLIONS IN
DEBT DEFENDED
BY GOVERNMENT
Administration Collecting
Ammunition to Meet
Campaign Attack.
BY RUTH FINNEY
Times Special Writer


WASHINGTON, June 2s.-The
treasury departments new long
range planners VIII find a s27,OOO,-
100000 public debt staring them in
the face when they begin studying
the governments fiscal policies.
Most Of their research will revolve
around this fact.
They viii be concerned not with
curbing the amount Of government
spending but with finding ways 10
facilitate borrowing. to preserve pub
lie credit, TO make possible future
reduction Of the debt. and possibly
10 cut interest charges.
Announcement OF the plan for re-
form comes Just as one fiscal year
ends and the work OF writing a
budget for another begins. On next
July l the ne> program should be
ready.
Looms a Campaign Issue
The announcement also comedies
with preparation for making the
public debt a campaign issue. It's
S27,056 10000 total is slightly great
or than the debt at the end OF the
war. It amounts to S215 for each
man. woman and child in the
country.
The administration has been col
Letting other ammunition to meet
this attack. It is prepared to sub
NIT these figures TO the public if
the opposition goes ahead with it:
Against the total of the public
debt. certain items should be off,
set. The first of these is 1858, OOO.-
600 in securities which government
agencies hold as collateral for loans
II has made to banks, railroads
cities and other public bodies. It
expects this money to be repaid
Il has a cash balance in the treas
ury of s2.687 100000. It has. in adj
dition. the $4,000, 100000 stabiliza-
ton fund set up by the gold reserve
act.
Subtraction Of these sums makes
the net debt s1S.81O.OOO.OOO. If the
amounts owed by foreign nations.
totaling s11, 75O.OOO.OOO. could be ac-
counted as an asset, the net public
debt would be only S7.O00.O 900 900 a
figure reminiscent of pre-War DAYS
If the United States eventually re-
CeiveS One-tenth the face value of
the foreign obligations the public
debt would be reduced to SIT, 635 ,0O0,-
600 or $40 per capita.
Other Optimistic Figures
The administration has other op-
timistic figures.
Compared with France and Great
Britain. the position of the United
States is decidedly favorable, it
argues.
The last League of Nations statis-
teal year book shows that the pub
Tic debt in France amounts to 1916
per capita. In Great Britain it
amounts to $500. Even when the
20O00C00000 debt of cities. counties
and states in this country is added
to the federal debt the per capita
here is less than in those two
countries.
On still another basis of COMPARE
son. the position of the United
States shows up we'll in statistics.
A few months ago. calculations
were made to indicate the ratio
between public debts and estimated
national incomes in 1923.
In the United states. the ratio of
debt TO 1923 income was 81 per cent.
In France it was 100 per cent; in
Great Britain 1873 per cent.
Less Than War Expenses
This country's debt amounted to
z per cent of the estimated ma
tional wealth for 1928 Frances
debt was o per cent of its national
wealth; Great Britain's was 81 per
cent.
Amounts being spent for recovery
IN the fiscal year just ended and
the one lust ahead total about half
the cost to the United States of the
war. In 1918 and 1919 fiscal years.
S3I 900 000. 600 was spent For this