Milford chronicle., 1935-01-25
ECONOMIC HICHLIGHTS

Ask a dozen economists this ques-
tiOn: How great a deb: can the
Federal credit stand?" The chances
are that you will get dozen differ
ent and opposed answers.
Not SO many years ago financial
authorities fearfully forecast that
the national debt would soon reach
the $4,000, 100000 mark, said that
this would mean the beginning of
collapse in the nations credit To-
day the debt has passed 100000, ,000,-
600, and some authorities believe that
it will reach $4,000, 100000 before
many more years have passed. Yet
little fear is now expressed as to
solvency of our government. Tr2a-
snry officials say that S50,000, 900 900
would not be an excessive debt for so
rich country.
The Presidents budget message
was predicted upon the theory that
it will be possible to achieve
smaller deficit in the 1886 fiscal year
than in the 1885. Federal bookkeep-
ing today is done under Il sort of
dual system. One set of books takes
care of the regular budget. Another
involves emergency expenditures
which, in the view of the Adminis-
tIatiOn, are much like war expenses
and so cannot be carried on the
books as normal spending. This sys-
tom has led to considerable cOnfu-
sion of the public which has been
told, on the one hand, that the gov
errment is cutting costs, white on
the other hand. il sees the defi,i;
and taxes constantly rising.
Estimated receipts for the 1886
fiscal year regular budget total $3.-
422.OOO.OOO-an advance of $685.
900 over 1885. Estimated expenses
are S3.3O2, 100000, rise of $554.O0O.-
900. This leaves an encouraging
estimated surplus. so far as regular [
income and spending is concerned.
of S12OOcO.OOO.
The next step. however, concerns {
the emergency budget The Admin Il
lstration plans to spend some ST.
JS2.OO0,000 for extraordinary pur- Il
poses. as opposed to an income OF o
S0'O.OOO.O00 which will come from
various AAA activities. This leaves o
a deficit Of $i.0l2.0GO.0OO. Il
AS result, total expenditures for
regular" and "cX ;raOrdinary" bud p
gets will be $7.SSl. .0OO, 900. a drup of
from 1885 Total re- 5
;eiptS from all sources will be $3. )
'92,O0O,OO0, Il rise of $3.50. 10000 from d;
lie preceding fiscal year. The total ir
ret deficit will thus be S3.Sg2 90 600 ia
$4O4,OOO.O00 less than the 1885 def
.it) which must be added to the Ga
caring national debt, bringing it
lose to the $35,OO0,OOO,OOO mark.
There is the budget situation in -
nut shell. Great as the deficit is,
lie President and many financial
Xperts say il is well within the
atiOn's resources" Il remains III
ict. however, that the national debt ho
lust eventually be paid-and that th
the meantime hundreds of mill lnl
ons year must be spent for in re
rest. All of this money has to be
used by taxation, and the greater Isl
le debt, the greater the burden on lili
dustry-and the less money it has pr
+ other purposes. Nineteen-thir- tn
six interest expenditures, for ex- a
Dple, will come to the neat sum of res
1O,OOO,OOO. a jump of $40,0O0,OO0 sta
To get away from the economic 80
poets of the budget, one of its most
-eresting phases is the proposed ito
penduture of SSOO.OOOOOO for ma no
NAL defense. In Congress author est
$ this expenditure, as it probably OF
II, 1886 will witness the greatest eve
eace-time war expenses" in the bal
tiOn's history. The President an =
unced these figures without COM bar
init is obvious, however, that Cit
y are principally made necessary gai
Japan's abrogation of the naval Bua
atty. Two years from now, when TIM
treaty expires, japan will start
build naval craft on grand scale, I
the United States must keep up gov
II her. At the present time, our the
raj strength is well below our gol,
lty limit This tonnage deficit han
! be made up, for the most part, the
hin the next two years. golC
be
BUSINESS is quiet since the hOli- doll
squirt and reports are neither by
Ouraging nor discOuraging. There MOI
e been a few small advances i'm iudl
iOus lines, while no industry has 5g4
en- back. Steel output recently priv
istered gain, with the outlook Of l
d for increased demand. Trade tude
been improving, and a late week men
wed a l6 per cent advance ip Adm