The Western news. [volume] (Libby, Mont.) 1933-current, 1935-01-10

ernmental expenditures, will not Justl-
fy the administration In not raising
taxes. For while Ii Is an easy book
keeping method to say that this or
that Item. say of public works or re-
lief. is extraordinary, and therefore
should be financed by the sale of
bonds Instead of by taxes, there are
other complications.
In the rule laid down by President.
Roosevelt. when he sent his first bud
get message, Interest and sinking fund
must be counted In the regular budget,
though the sum on which. they are
calculated may be regarded as belong
Ing In the extraordinary budget.
Total Is Mounting
Although there has been consider
able saving In Interest charges, due to
the low rate OF interest the govern
ment has had to pay, the total Is
mounting, and 1t will be recalled that
up TO now the budgets OF this admins
tration have eliminated sinking fund.
This was done on the theory that dur
Ing an emergency there was no point
In saving UP to pay of debt
But 1t Is obvious now that the APP
propriations for public works, to prime
the pump OF business recovery. and of
relief to keep people from starving
and freezing, are not going to de-
"a Tn ty,o n nlt
human probability they must be In
creased. And while they are still re-
garded as emergency appropriations,
and therefufe~to be financed by bonds
instead Of taxes, there Is growing
belief that the relief appropriations
are never going to shrink to any figure
which was thought normal few years
back-even two years hack.
For 1t is now clear that relief is to
be with the federal government always,
| the effort to make the local political
units states, counties and cities, take
over their own problems to the con-
trary Notwithstanding.
And 1t Is plain to the experts who
have been working on budget figures
under Morgenthau's direction that the
| present flow of receipts from taxes IL
| not sufficient to carry what cannot
much longer be regarded as an emer-
gency load, but which must soon be
| classified as normal load.
In addition, there is fast approach
| Ing time when sinking fund require
ments can no longer be deferred. It
| has been hoped that sufficient re-
| vIval Of business would result 10 boost
| Ing tax receipts to sufficient extent
| to take care of this. hut hardly to
| take care of the Increased normal load.
About Public Lands
The old public lands question has
been completely reversed apparently
since the dawn OF the New Deal. In
former administrations senators from
the western states complained bitterly
and often about the fact that the fed
| their land, which as result were un-
| developed. produced no taxes. and
| therefore added to the burden OF the
| state government. The net result,
| they insisted. was that their taxpay-
ers were nnjustly assessed.
Now 1t Is southern state which
protests-not against federal govern
ment land now held, but against the
| o,ot,tCJtIor ~ uovorny,art land which
will thereupon pass out OF the taxing
base OF the state.
| In a recent telegram to Forestry
News Digest, Governor Talmadge OF
| Georgia says.
THE federal government. according
| to reports, Is optioning large areas
OF land In Georgia for purchase, the
area reaching into hundreds OF thou
sands of acres. II any OF the agencies
/ OF the state are consulted about much
| OF this federal land acquisition pro-
gram, 1t Is not known to me. From
/ such information as drifts In. It seems
marginal lands, largely forest land and
4 abandoned farms thnt are now In con-
/ dition to use only for growing trees.
/ II this land goes to federal govern
| ment ownership 1t Is removed from
state taxation. removed without the
state being consulted.
II certainly do not want land own
ers OF Georgia to have TO compete with
THE federal government In growing
timber or In producing naval stores,
with the federal government using
tax-free and subsidized lands and not
obliged TO =malze profit. Georgia has
| been getting lot OF wealth from It's
forests and 1t looks as II lot more
Is coming from our woods Georgians.
and not the federal government,
should get 1t. II seems to me that the
federal government should at least CO.
ordinate Its land purchase activities
with some consideration for the rights
Of the state"
Which. incidentally. Is an entirely
new Idea of Coordination" to many
New Dealers.
The Real Answer
Apparently Governor Talmadge. In
whose state lies what has actually