The Washington times., 1935-11-14
ORDINARY EXPENSES
ROSE 14.8 PER CENT
IN 1895, HANEY SAYS
Bv LEWIS HANEY

Professor of Economics, New York University
NEW YORK Nov. III have letter from a California
reader enclosing an editorial This editorial that ~ the
Roosevelt Administration is holding ordinary expenditures
within annual income; (2l that its extraordinary expend
anyhow enough soak wealth and give the
American 'his place in the sum-
Not one of these assertions will stand analysis.
The Roosevelt Administration contrary to its pledges is
greatly increasing ordinary Government expenses, will
prove In order maintain show of balancing it has put on
burdensome and has thrown public works and
poyment relief out of its accounting of ordinary
After slight reduction expenditures 1894, Mr.
Roosevelt the trend and increased ordnay expend
lures 148 per cent 1885 At 81 billion dollars they
above year 1921 and 1929 For 1885, promises
increase of about 80 centan increase of over half
billion
Meanwhile taxes have increased to point where the
$62 direct his automobile and
$2 year gasoline The smokers half the price
of pack of cigarettes to the Government and at pack
day that $21 year.
And at that the Administration does include all its
current expenses in its ordinary or general account
The true to put it, that the Roosevelt Administration
has raised enough that part of its increased
spending which it chooses to call ordinary"
By increasing its regular expenses it has eaten
all its revenue and thus forced to borrow and into
debt for the rest of the spending
The largest item of regular expense interest public
debt This item has not been reduced It has been increased
1t in 1884, and $82OOOOOO in 1885, It has
increased 81 per cent since 1881.
This terrible showing By artifcialy reducing money
and by borrowing chiefly shorterm notes and bills
it reduced the of interest the Government But
it has sweed the total debt that it actually pays large
In addition it has increased military expenses jumped
AAA spending half billion dollars enormously in
creased the army of Government employees.
In 1922 the postwar low point in civil expenses. In
March 1885, $4,000 regular civil employees In
May, 1885, the number had increased 10000 Now it
has reached $4,000 But in addition there $4,000 spe
cia employees and 485O00 irregular Government employees
Thus the total much million.
This is the fatal result Of bureaucracy Out of every 100
persons in the country, Mr. Roosevels Administration is
"employing'' person. including military and
naval employees
large part of this expenditure constructive than
expense and far less justified Wasefu fish ponds
parks leaf rang and hole digging
productive than trenches barbedwire entangemen and
less necessary. Pig killing constructive than
killing in
And what moral level has fallen who say ooh
WE'LL the other fellow got his the BOOM I'll get
mine! That puts him par with the profiteer and
the New Era manipulatOr
If that be the spirit of he average man. America today
God help AmeBica
In conclusion would add that utterly false to say that
the nations credit i'll better shape The shortterm urgen
debt OF the nation enormouSprobaby greater capita
than that of civilized nation This debt largely carried
by banks instead of by individual
inflated bank credit Probably other important nation has
forced so large part of its debt into its banks
This is thoroughly unsound condition. The Roosevelt Ad
ministration is responsible for making it worse.