Evening star., 1934-09-30
The Cost of the New Deal.

The Cost of the New Deal.
Despite the depression, the Govern
ment's huge debt and the vast num-
ber of citizens on relief rolls, We still
think in terms of billions of dollars.
In fact, the country which became
billion dollar minded in the boom days
of 1928 continues to be billion dollar
minded. The difference between the
days of 1928 and of 1884 lies in the
fact that six years ago Americans
were making billions of dollars, and
today their Government is spending
other billions of dollars.
The Republican Senatorial and Con-
gressional Committee has issued
campaign pamphlet entitled THE
Staggering Cost of the New Deal"
It declares at the outset that during
its first fiscal year (July l, 1888, to
June 80, 1880 the Roosevelt admin
istration has placed at its disposal
specific appropriations to cover def
mite expenditures authorized by the
Congress the sum of $23 ,012 982, ,388."
OF this total S4,358, 900, 900 was appro-
priated for the coming fiscal year at
the short session of Congress, just
before Herbert Hoover went out of
the White House. The balance, $18,-
654 100000, was appropriated by the
Roosevelt Congress at its two ses-
sions. In addition, it is pointed out, the
Roosevelt Congress authorized the ex-
penditure of indefinite sums by the
Home OWNERS Loan Corporation, the
Farm Mortgage Corporation, the Fed
eral Housing Administration and the
Reconstruction Finance Corporation,
and pledged the credit of the Gov
ernment to assure payment of another
S7,7O0,0000 Here is total of more
than thirty-one billions of appropria-
tions and authorizations turned over
to the New Dealers within the short
space of something more than year.
Against these appropriations and
authorizations must be placed the
money raised by Federal taxation and
pledges to repay to the Government
certain large expenditures, loans made
to a great variety of institutions, to
cities and States, etc. However, on
August 81, 1894, the interest-bearing
public debt stood at s26 ,495 065, 900.
This is a greater public debt than
existed at the close of the World War.
1t is a greater public debt by almost
six billions than existed on March
4, 1898. And still the debt mounts.
1t is to be assumed that the New
Dealers expect this money to be paid.
The alternative is reputation. Fur
ther imitation of the currency might
account for a large part of the debt.
But such action by the Government
might seriously impair its credit, and
at the same time cause disaster to
millions of the American people. In
Justice to the Roosevelt Administra-
ton, it is only fair to believe that the
intention is eventually to meet these
debts, dollar for dollar. They could
not have been incurred lightly.
To meet these debts and to call
halt to more and more spending the
Government must start flow of more
money into its Golfers through taxa
ton and clamp on the brakes. None
of the New Dealers is talking about
taxes nowadays, unless it be to take
away the property Of those who have
it in larger quantities than others.
That new New Dealer, Upton Sinclair,
Democratic nominee for Governor of
California, has advanced plans to do
this within the confines Of his State.
1t is a safe conclusion that there is
going to be little talk by the Demo-
cratic powers that be about increased
taxes until after the votes have all
been counted November 6. Rather
will the talk be about the expenditure
of billions of dollars and the Govern
ment cornucopia.
When the people have to pay the
rub will come. 1t has always been
easier to spend billion dollars than
to pay it-certainly more pleasant.
Many of the billions which have been
and are being expended by the Gov
ernment during this administration
are for relief of the destitute, the un-
employed and the sufferers Of the
great drought. You cannot have re-
lief without paying for it. 1t is prop
er both to have it and to pay for it.
But even to a people which thinks in
billions the thought is likely to come
that this money should be expended
In the sanest directions.