The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-03-09
COST OF new
EALREACHES
a BILLIONS
Marks 2 Year Outlay For
Government, Relief, Re-
covery Projects

(UP0-New Deal Spendlng near
ed the observation-disclosures as
President Roosevelt started his
third wear in office this week.
This is the total monetary cost
TO the taxpayers to date for car
rying on the normal functions of
the federal government. for relief
of the unemployed and for varl-
Gus recovery programs OF the ad-
miniStratiOn. ooo
has been spent to date for relief
reopening of banks. loans 10 ran,
roads and home owners and al
other recovery steps, while APP
proximately $4,000, 100000 went
for regular functions of the TED
eral government.
Administration officials mateh-
cd TODAY this record breaking out
pour of federal funds with aetual
accomplishments of the Roosevelt
administration and concluded that
important progress had oeen
made toward a restoration OF
prosperity. Their claims were dis
puted in some quarters.
ACCOMPLISHMENTS LISTED
Among the accomplishments at
the expense of nearly S9,OOO,OOO'--
900 of federal funds were listed
the following: =,
between 100000 and
100000 persons have been
supplied with food and housing.
2-Panic conditions that APP
peared with the Roosevelt inaugu-
ration have been dissipated and
stability has been restored in bus
mess and finance.
3-Thousands of homes and
farms have been saved from fore
closure through operation of gov
eminent agencies.
4-Nearly 10000 banks have
been reopened and most OF them
nIaeed on a sound basis with lib
eral government cash. =,
5-Incomes of farmers and
wave earners have been boosted
by more than a billion dollars OPP
Grafton of the NRA and farm re-
lief steps.
6-Business activity has risen
from 90 per cent of the 1860
average in March, 1888, to SO per
cent in December, 1884; commoo-
itv prices rose from 60 to u.
DIVERSE VIEWS
In gauging the economic results
of the first two years OF the
Roosevelt administration, impair
+;al observers were still uncertain
as TO the ultimate outcome: SUP.
sta,tial progress in restoration OF
stability and hating of the defia-
tion spiral of the previous four
wears were admitted. but some
observers were fearful that the
heavy spending and some OF the
more experimental of the New
Deal recovery plans might m'ti-
gate against further improve
ment.
an of the New Deal recovery
steps except its monetary pro-
gram have cost money TO date.
The money program, involving
the devaluation of the gold dollar
TO 5s.O6 per cent of its former
value actually. returned a oooS
profit of nearly S3.O0O,OOO,OO0
10 the treasury but this portion OF
the Roosevelt program apparently
was drawing the most criticism.
Still unrevealed was the ultl-
mate outcome of the monetary
or credit initiation only so far as
ii would cause domestic price lev
els 70 rise to a sufficient extent
10 hermit creditors to pay ther
debts with dollars of the same
purchasing power as those wnen
they were contracted. In TINS
manner bankruptcies are 10 De
prevented.
FEAR INITIATION -.
Some administration critics are
fearful that the monetary and
credit initiation policies OF the
federal government ultimately
will lead to an era of uncontrolled
;nflation to be followed by new
slump. At the same time New
neal leaders were positive that
they had sufficient powers to put
the brakes" on any unhealthy IN
flationary boom Thev were sue
cessful in the boom in the sum-
mer of 1888.
A powerful hold on possible
unhealthy initiation has been sup
piled the administration by almost
unlimited control over the secur-
ity markets of the nation through
the securities and exchange COM
mission.
Under its securities plan dicta-
torial powers have been gained
in the operation of the nations
exchanges and the methods Of
control over security 'SSuCs which
were a contributing fac'or in the
1929 boom which ~'"S followed by
the present depression.
RECOVERY PROGRAM
Treasury figures today showed
the record peace time eXpendl-
lures of the New Deal in the pro-
motion of it's recovery program
Against total go""rnment expen,
ditures to date of approximately
SIS.50O.OOO.OCO, the Government
collected in taxeS and other in
come about Sc 100000, 900. Thi.
left $7,5O0,O09Qe0 (which wa
borrowed from the public, carry
ing the national debt to its pres
ent record peak of S2S,50O,O0O,
600.
Despite the Sweeping rise in thu
governments debt. rising price.
for government bonds as the re
suit of various artificial boosting
operations of the government