The Omaha guide., 1935-07-13
ECONOMIC
HIGHLIGHTS
Happenings That Affect the Din
ner Pals, Dividend Checks and
Tax Bills of Every Individual.
National. and. international
Problems Inseparable from 10
cal Welfare.

National. and. international
Problems Inseparable from 10
cal Welfare.
In the eyes Of industry, the fed
eral deficit looms large. Bust
ness men, In company with invest
ors, property owners and other
taxpayers, have watched the gov
eminent charge present activities
against future income and are
wondering how long it viii be
before the paying off process is
reflected in eXorbitant, perhaps
c%onfiscatory taxes.
In the eyes Of the politicians,
the deficit also occupies a large
part Of the landscape. During
the political wal that will be
fought next year, the deficit will
be an out standing issue. Repub-
licans will claim that the Roose-
welt Administration is imperiling
the country's credit, is running
us into bankruptcy at express
train speed. Administration
spokesman Will poo-pooh that,
and answer that vast expenditur-
es were essential to fighting de-
preston, and that the country's
credit is easily able to stand the
bill.
Irrespective Of which is right,
federal finance presents a depres-
sing picture, and has done SO
ever since 1880, when the last sur
plus was recorded on the Treas
urys ledgers. That years sur
plus amounted to 1913, OO0, 900
and in the ten preceding years
the government s receipts had ex-
ceeded expenses by the hand
some sum of 10 million dollars.
In 1881, the red ink period be-
gan, when the federal government
spent 1853 million dollars more
than it received. Then, in 1882,
the era Of really large deficits set
in, with a total of 2 billion TAI
million dollars. For the next two
years the deficits were 2 billion
GOT million dollars and 3 billion
606 million dollars respectively.
And for the fiscal year which en-
ded on June 80, 1885, it is estimat-
ed that the deficit came to 3 bill
hon and IS million dollars
1t is a notable fact, according
to the United States News, that
the 1881 and 1892 deficits were
not due to greatly enlarged spend
ing, but to q falling off in reve-
nue.. Since then, taxes have been
raised and revenues increased,
but spending has gained at a
much faster rate. For example,
direct and indirect doles for I'M
employed accounted for the spend
ing Of 3 thousand million dollars
in the 1885 fiscal period alone.
AT the start of 1894, the Presi-
dent said he expected that federal
outgo would balance income be-
ginning with July /, 1885. Now,
in the President latest message,
he forecast that the 1886 deficit
would be 8 billion 829 million dol
lars; the argest in our history.
Reason for that a~bout-face, says
Mr.. Roosevelt, is the unlooked-for
persistence Of depression, coupled
with the fact that only the Fed
eral government seems capable OF
providing relief for the needy.
some business men answer that
by saying that one major cause
of this persistence has been the
vast increase in governmental ex-
penditures and legislative inter
ference with business; that we
are pursuing a vicious circle
which can end only in national
insolvency This view is Of course,
held to be false by Administration
economists.
AT any rate, more money is be-
ing collected. 1t is forecast that
next year the American people
will be deluged with more and
bigger figures than they ever
heard before during the conduct
Of the national election. The
people will be confused by social
led experts contradlcting each
other. The solution to the deficit
problem viii not be solved by po-
speeches from either side.
But until it is solved, American
will remain unconvinced
that natural, sound recovery can
be achieved.
-OOO-
Business is holding steadily to
a level that is somewhat below
that Of a year ago. Fall buying is
down, due principally to the hope
Of large purchasers that prices
are about to break now that the
codes are out. July may witness
a rise in the general business in
lnv that will hiring III lid with |