The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-07-20
TAXES TO PAY
FOR RECOVERY
ASSKY CLEARS
MELONS BiIIion-a-Yea Rec
ord of Debt Reduction
Cited as Precedent.

nv rippF-Howqrd ArtrsBgner ANiance
WASHINGTON. July 20-There
are two ways to pay the bill for eco
nomic recovery-increased taxation.
and initiation.
The administration has chosen the
tax method. while using a mild dose
Of imitation through dollar devalua-
ton and silver purchases TO boost
commodity prices and shave down
private indebtedness.
President Roosevelt. in setting up
the recovery agencies, banked on
the willingness of the people 10 pay
the cost later as improving business
puts money back into their pockets.
He has found a general realization
among Americans that the printing
press method Of paying debts is the
road TO ruin.
Prepare TO Meet Cost
SO We will find the next congress
preparing 10 meet the cost Of re-
cOvery by increasing taxes.
Republicans are complaining
about the cost. Generally they &C
cepted the necessity of economic
stimulants and voted for them in
congress. For political purposes
some Of their spokesman now are
taking different tack, IN effect re-
pudiating the judgment Of Repub-
leans in house and senate.
When they were in power they
found the American people willing
10 paw the cost of a foreign war
The bright star in the crown of An
drew w. Mellon was the manner IN
which he carried on the work be
gun by a Democratic administration
IN cutting down the national debt.
which was piled up TO a new level
by World war OUTLAWS.
The debt reached its previous peak
in August. 1919. when it stood at
S25 $50, 100000. In eleven years it
was reduced more than 50. 5O0,0O0.-
900 TO sic 600, OO0. 900 on Dec. 80.
1880. Then it began to climb again
as depression diminished revenues.
G. o. p. Is Blamed
Payment of nearly two-fifths of
the debt was accomplished despite
repeated tax reductions which Mr..
Mellon and congress carved from
prosperity.
Had the Republican administra-
ton, in prosperous times, with
stood political pressure and kept
taxes high. the country would not
now be confronted with so imposing
a debt. But the achievement in re-
ducing the total nearly a billion
dollars a year during that period
shows what can be done.
When the Roosevelt administra-
ton began on March 4, 1888, the
debt stood at S20.934, 100000 1t is
estimated that it Will reach S31. 834.-
100000 next July l. which the ad-
ministration anticipates will be the
peak. Thereafter it hopes to begin
scaling the figure down.
This Is an increase of 10000
10000.
But in the same length of time.
from March 81. 1917, to Aug. 81,
1913 lle puDlC OeDL ulcI6dSeQ
more than $4,000 100000. It rose
from s1.2S2 600. 900 to SIG ,596, 100000
. TO pay for the World war
No one was alarmed about that.
1t was accepted as the price of
war.
Report Is Encouraging
From the treasury has just come
an encouraging report. Internal
revenue collections increased billion
dollars in the last fiscal year. The
Roosevelt recovery program already
IS beginning to pay cash dividends.
But taxes are not yet up to the level
TO which willing congress raised
them to pay for the war.
To prepare for further increases
at the next session the house ways
and means committee is making a
careful study this summer. To di-
vide the territory between local
units and national government, Sec
rotary of the Treasury Henry Nor
genthau Jr. has arranged a confer
ence with state and local officials.