Milford chronicle., 1935-07-26
FEDERAL DEFICIT LOOMS LARGE

In the eyes of industry, the feder
al deficit looms large. Business men
in company with investors, property
owners and other taxpayers, have
watched the government charge
present activities against future in
come-and are wondering how lonl
II will be before the paying-Off pro
cess is reflected in exorbitant, per
haps cOnfiscatory taxes.
In the eyes of the politicians, the
deficit also occupies a large part OF
the landscape. During the political
war that will be fought next year
the deficit will be an outstanding is
sue. Republicans will claim that the
Roosevelt Administration is imper-
fling the countTy's credit, is running
us into bankruptcy at express train
speed. Administration spOkesmen
will pooh-DOoh that, and answer
that vast expenditures were essen
tial to fighting depression, and that
the country's credit is easily able to
stand the bill.
Irrespective of which side Is right,
federal finance presents a depressing
picture, and has done so ever since
1880, when the last surplus was re-
corded on the Treasury's ledgers.
That years surplus amounted to
$73S, 100000, and in the ten preced-
ing years the governments receipts
had exceeded expenses by the hand
some sum of $4,000, 900, 900.
In 1881, the red ink period began,
when the federal government spent
S463, 900, 900 more than it received.
Then, In 1882, the era of really
large deficits set in, with a total of
$2,741, 100000. For the next two
years the deficits were $2,6O7, 600, 900
and $3,6O6, 100000 respectively. And
for the fiscal year which ended on
June 80, 1885, it is estimated that
the deficit came to $S,O65, 100000.
1t is a notable fact, according to
the U. S. News, that the 1881 and
1882 deficits were not due to greatly
enlarged spending, but to a falling
OFF in revenue. Since then, taxes
have been raised and revenues in
creased, but spending has gained at
a much faster rate. For example,
direct and indirect dOles for unem-
plOyed accounted for the spending
of $3.OOO.OOO, 900 in the 1885 fiscal
period alone.
At the start of 1884, the President
said he expected that federal OutgO
would balance income beginning
with July /, 1885. Now, in the Pres
ident's latest budget message, he
forecast that the 1886 deficit would
be 1885,. 900, ,O00-the largest in our
history. Reason for that abOut-face,
says Mr.. Roosevelt, is the unlocked
for persistence of depression, coup
led with the fact that only the Fed
eral government seems capable of
providing relief for the needy. Some
business men answer that by say
ing that one major cause of this per-
sistence has been the vast increase
in governmental expenditures and
legislative interference with busi-
ness-that we are pursuing a vicious
circle which can end only in ma
tiOnal insolvency. This view is, of
course, held to be false by Admins !
tratiOn economists.
At any rate, more money is being
spent than is being 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 so-called ex-
Derts contradicting each other. The
to the deficit problem will
not be solved by political speeches
from either side. But until it is solv-
ed, American business will remain
that natural, sound re-
covery can he achieved.
Wheat ihreshing will be general