Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-09-19

THE "BREATAlNe SPELL"
BOTH PARTIES STIRRING
FARM ISSUE GROWING
CANADA WANTS TREATY
Speculation is already being in
dulged in with regard to the amount
Of money to be spent by the Federal
Government In the next fiscal year.
=
The present work relief program
is due to end In July, and il It Is con
tinued will require a large sum. In
addition, the general expectation is
that, despite the Presidents opposi-
ton to cash payment of the bonus.
the Congress will pass such a mea-
sure over any possible veto, and
thus add two billions to the other
amounts needed. These items, 1t is
said, forecast five billion dollars of
prospective spending next year over
and above the regular budget, which
is expected to approximate four bill
ion dollars. II other proposed legis-
ilative measures get through, especi-
ally the plan to refinance farm mort
cages and the program to aid farm
tenants to become purchasers, there
is no way to guess what the national
budget will amount to.
The question Is, where will the
money come from? OF course, gov
eminent evenu Is increasing, and
it is quite probable that better bust
ness will cause this to grow In the
future. However, it is not likely that
the budget for the next fiscal year
will balanced.
Billions have flowed into the Trea-
sury rather easily within the past 20
months. In fact, money has been so
plentiful, and investment Opportun-
tiles so scarce, that Secretary Nor
genthau has been able to get money
on almost his WI terms. Despite
some excitement when a recent sale
Of guaranteed securities fell short Of
the total called for, there was a high
ly successful sale of securities when
the Treasury offered $500, O00, 900 in
1h percent three and one-half year
notes.
1t was oversubscribed 21h times
within one day, indicating that in
vestors are still anxious to secure
government paper. At the same time,
if business conditions improve and
the investment market affords attrac-
tive opportunities for idle funds, 1t
will be necessary for the government
to pay higher interest rates in order
to get the money it needs. This, how
ever is not necessarily to he inter
preted as a weakness in government
! credit, but rather should be regarded
as evidence of a stronger recovery In
the country.
The American Federation OF La
Dor in it's most optimistic statement
on recovery reports greater bust
ness vitality than any upswing since
1888, and attributes this chiefly to
inherent economic strength" The
point is made, however that employ
ment has not kept pace with bust
ness gains and that while workers
lost three-fifths Of their income from
1929 to 1888, they had regained only
one-tenth by 1894. The only increase
In employment reported was credited
to shorter working hours under MIRA
in 1884. employment this spring."
said the report, was below last years
level, although production was high
err" The statement points out that
the buying power, lifted to higher
levels last year by MIRA, and the In
come of farmers. raised by the AAA
made themselves felt Gin sufficient
degree to stimulate production"
Two recent moves by the Pres
sure business and those alarmed at
the governments emergency agen-
cies. The first placed under the
supervision of the director of the
Ibudget the administration expense Of
the seven recovery agencies not al
ready subjected to check. The Pres
dents action was based on the be-
lief that the worst OF the emergency
had passed and that economy could
be obtained by preventing duplica-
ton of effort and eventual reduction
of personnel. The budget bureaus
function, it may be explained, is to
estimate in December of each year
what the government will have to
spend in the fiscal year beginning
the following July, and also to super
wise the expenditure OF the allot-
ments during the fiscal year.
The other step caused considerable
controversy. 1t vas the Presidents
assurance to business that "substan-
tial completion" Of the legislative
program had been accomplished and
that a breathing spelr' Is here, dur
ing which business can adjust itself
to recent notifications Gin the condi-
lions and rules OF economic enter.
prise"
Democrats lauded the statement
Republicans generally called II
partisan propaganda" and the more
violent of the Presidents critics
doubted that the promise could be re
lied upon to mean anything except q
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