The midland journal. (Rising Sun, Md.) 1885-1947, 1935-01-18
National
Debt
National Topics Interpreted

quest for the new
N0fz0n0l appropriations, finan-
Debf cial 8 tn d e n to are
wondering more and
more when the end of this government
spending is to come. 1t will be re-
membered that Mr.. Roosevelt said a
year ago that the total public debt
should not exceed $31, 1884. 100000 and
that that figure should be reached
around June 30, 1885. When 1t is con-
sidered that the present public debt
exceeds $2S,5OO,OOO,00O, it becomes
difficult to understand how the Presi-
dent will succeed in sticking to his
original assertion to hold the national
debt at the figure named.
The Treasury department has Just
released its annual report and this re-
veals an increase in the public debt of
approximately six billion dollars since
June 30, 1888, an eighteen months rec
ord. It has made the total cost of the
recovery spending program aggregate
something over twelve billion dollars
since January !, 1881, when the spend
ing spree really began. To make the
vast amount more readily compre-
hensible, If you take the time to figure
1t out you will find that the govern
ment has been spending borrowed
money at the rate Of almost twenty
three thousand dollars a minute In the
last four years. To illustrate further
the magnitude of this sum a figure ex-
pert here has calculated that there has
been about one billion minutes since
the birth of Christ and, therefore, the
federal government In the last four
years has added about twelve dollars
to the public debt for each Of the min
utes since Christ came on earth.
But to get back to the present plan,
presentation Of the budget with its
maximum outlay of around seven bill
lion dollars recalled to some leaders
the assertion by the President respect
ing the topmost limit for the public
debt. In the budget message which he
presented just year ago Mr.. Roose-
welt boldly stated his belief that "the
government should seek to hold the
public debt" to the figure of $31, 1884,
100000.
Furthermore" he added, "the gov
eminent during the balance of this
calendar year should plan to bring its
1886 expenditures including recovery
and relief within the revenues expect
ed In the fiscal year 1886" The fiscal
year 1886 begins next July /. And
frequent announcements from the
White House have made 1t clear that
a balanced budget in that time Is quite
unlikely. In addition, the treasury
said in its annual report that taxes
always Jagged behind In rejecting re-
covery of the country. For example,
income taxes to be paid on March Is,
1896, and in the subsequent install
ments of that year will be the result
of levies on earnings of the current
calendar year. No one expects earn
ings in 1895 to be normal. 1t is OBJ
vious, therefore, that the balancing of
the budget in the fiscal year begin
ming July 1, 1885, becomes almost a
physical impossibility unless the Pres
ident should do the unexpected by
cutting off every one Of the sixty-five
or more recovery and relief agencies
and should cut off all federal funds
for relief of the destitute. If that
were done, it is estimated by fiscal ex-
perts that ordinary receipts by the
treasury would come close to meeting
the ordinary cost Of the regularly es-
tablished governmental agencies.
There had been frequent contentious
BY avid New Dealers that Mr.. Roose-
velt's second budget
Presidents recommendations
Viesus c hange would provide clear
picture of his gener-
al fiscal policies. If their statements
remain true, they resulted In setting
up one of the most paradoxical condi-
tons in the history Of this nation.
Looking back over the whole Roose-
welt period, the thing which observ-
ers have never been able adequately
to explain is who or what effected the
change in the Presidents views on
fundamental financial questions. II is
too obvious to precipitate an argu-
ment that the Presidents views have
changed. When one goes back to his
first message to congress or beyond
that to his campaign speeches and the
platform upon which lie made the race
for the Presidency. 1t is futile to at
tempt to reconcile those utterances
with the subsequent spending and bor-
rowing program In which his admins
tration has INDUCED. 1t will be re-
called that Mr. Roosevelt declared in
his inaugural speech an intention to
balance the budget and wipe out the
deficit left on his lap by the Hoover
administration. He went on to say
that If congress In its generosity voted
sums that placed the budget out of
balance 1t was under the necessity at
the same time to provide taxes to
raise the excess expenditures.
Since there can be no dispute that
MIR. Roosevelt's views have changed
and he has acted In accordance with
his new found principles, the interest
ing thing Is who brought about the re-