The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-08-11
THE COST OF GOVERNMENT


In The Charlotte Observer Dr.. Julian ;.
Miller presents three short paragraphs
which tell an impressive story. Here they
are:
Cost of government in this country has gone
up by 17.3 per cent in 1882 as against 1929.
--"That wouldn't be so alarming except for the
tragic circumstance that while this was going on,
our national income Topped from SO billion to 80
billion, more than 45 per cent decrease in in
come.
4In 1882 we spent three times as much for gov
eminent as for agricultural products; seven times
as much as we spent for light, power and gas; 20
per cent more than we spent for all manufactured
products; ~ times as much as we spent for metals.
An idea of the change may be gained from the
fact that in 1929, government cost US only third
as much as we spent for manufactured products,
and cost a billion dollars less than we spent for
agricultural commodities"
The foregoing is not a new story to the
people of the United States. 1t has been
told and re-told in the newspapers and b.
speakers throughout the country. The re-
suits of the agitation, so far, are not i'm
presSive. In some cases local taxes have
been reduced in the past two or three
years. In some States, as in North Caro-
lima, the costs of government have been
reduced. Statements are frequently broad
cast about reductions in the cost of main
tanning the federal government, but the
country has not yet been able to see that
the total expenditures of Uncle Sam have
Come down. The nation is still piling up a
deficit. The total has reached startling
proportions. In fact, it seems that the fed
eral government is saving at the spisct
and wasting at the bung, if it be true that
expenses have actually been cut in any of
the departments.
The future of the country is bound up
in the taxing problem. The fear that the
spending spree of the present Washington
administration will finally bankrupt the
country is the most widespread that now
afflicts the country and retards recovery
The, billions the federal government is
spending are secured by selling bonds. The
wealthy people of the country and the
financial institutions buy the bonds, thus
putting their wealth in tax-free securities.
In the years to come when these enormous
sums must be paid, where is the cash to
pay with going to be secured?
The great body of poor people of the
country pay no direct taxes to the federal
government and very little in indirect tax
alton. The wealthy will have their wealth
ln-tax-free government securities in the
course of few more years, and they will
pay comparatively little for the liquidation
OF the biggest public debt incurred by any
nation in the history of the world. The
meaning OF this is that the futile attempt
to discharge this immense Indebtedness IN
the years to come must be made by the
rniddle-class people of the United States.
These are the people in moderate financial
condition-small business men and manu-
facturers, professional men, and the farm.
ers who own the land.
| Can the middle-class people of the coun-
try pay the debt? Many citizens are COM
ingato the conclusion that they will not be
able to do it; that BANKRUPTCY faces these
Glasses whenever it becomes necessary for
the federal government to "crack down.
on them in the effort to return to the
moneyed men of the country the billions
they have loaned and will continue to loan
the government.
The net result of the present policy OF
the federal government, therefore, will mo-
be redistribution of the wealth of the