Evening star., 1934-07-05
FISCAL CHANGES
SEEN AS BIG NEED
Condition of Government
Held Critical Under Pres
ent Policies.
BY DAVID LAWRENCE.

This week began a new fiscal year
for Uncle Sam. But II is douotIul
whether more than $4,000 out OF our
5o,OOO,00O people of voting age LOOK
the time or trouble to read the ac-
counting given by the Roosevelt ao-
ministration for the year just enoeo'
Holders of Government bonds,
bankers. economists, and those WIN
an auditing turn of mind pronanly
looked thoughtfully at the statement,
but the layman saw only a cluttereo
mass of figures which do not reaolIy
explain themselves.
Yet. on the course OF Government
finance depends more than anytnlng
else whether the dollar bills carried
in the pockets Of our citizens VIII
continue to be worth lOO cenIS OF
few pennies some day
The picture presented oy tne
Treasury is a serious one, but by no
means insurmountable. 1t is grave
onlv if present fiscal policies are not
changed or if the printing OF the
pump through large Government loans
and subsidies is not soon replaced py
a revival of private business and prl-
vate spending.
Position Is AnalyZed.
Here is a brief analysis of the Gov
ernment's position which the writer
has derived from study CT the ohcial
information made public by the
Treasury Department for the year
ending last Saturday, as Uncle sans
accounting year always runs from
July l to July l:
First, the public debt was increased
by about $4,500, 100000. This is the
largest increase in public debt IN any
wear in American history, except DUR
ing the World War.
Second, through rigid economy IN
the Government departments and bu-
reaus. which are in no way connected
with emergency agencies, the total
expenditures for normal operations
we're S2,833, 100000. This includes an
interest item of S757, 100000, but
makes no provision for debt retire
ment or for any relief measures or
lending by the Federal Government.
Third, the total receipts of S2,763,-
900 900 were received from all sources
exclusive of processing taxes, which
are to be paid out to the farmers any
way. But this figure does include
interest paid to the Government by
private borrowers through the r. F. G.
and other agencies.
None Provided for Debt.
Fourth. this means there was about
s1OO, 900 lacking on a normal
budget and yet no provision for debt
retirement when the law requires
about S360,0O0,000 year. This had
to be borrowed.
Fifth, the amount spent on emer-
eency relief and loans to agriculture
and financial institution and for pub
lie works was about $4,272, 100000.
On how soon this item can be cut
down and on how soon the receipts
from all sources can be brought up
depends the future of the American
dollar, or, to put it another way, the
faith of people everywhere in the
capacity of our Government to redeem
the currency 1t has issued or will
issue
Sixth. the public debt stands now
at S27 7,000, 900 900, the highest of all
times and above the peak of the war
era. The President indicated to
Congress last January that the public
debt would go to S32,000,00 100000,
which, of course, is apart from the
contingent liability which the Gov
ernment has assumed for the S4,-
600 100000 of farm and urban mort
cages and interest. 1t is hoped these
mortgages will not mean any loss
to the Treasury, but it will take many
years to find out, as the loans are
over long period.
Seventh, to Offset the S32 900 ,000,-
600 of public debt, the Government
holds or will hold about SIS 500, 900 900
of repayable loans issued through the
r. F. c. and other Government agen-
cies and has about $4,000 100000 in
funds in addition which it obtained
last Winter from a capital levy on the
American people otherwise known as
profit from the gold devaluation of
the dollar. This means about $780,
100000 Of assets which can be some
day subtracted from the $4,000 ,000,-
900 of public debt, leaving about
$23, 700 100000 of net public oebt that
must be paid back by taxes in the
future.
Eighth, Mr.. Roosevelt has indicated