Evening star., 1936-01-08

1887 5,b54 ,UUU ,UUU
Now, anybody who has had any
experience with a private business
knows that there is something to be
worried about when the expenses rise
higher each year than the preceding
year. notwithstanding the fact that
the revenues are going up materially
each year, too.
g, If it is contended that all this Is
necessary on account of the depres-
sion, the observer naturally asks why,
If business conditions have been I'M
proving and the administration has
been bringing recovery, should the ex-
penses keep on going up. The Presi-
dent told an audience at Atlanta, Ga,
that recovery is here and that he had
-'planned it that way" and yet in his
budget message just sent to Congress
he, Is unable to forecast how much
money he will need in the coming
fiscal year, which begins July l, 1886.
Political Strategy Possible.
Mr.. Roosevelt promises figures later
on; that is, before the present session
of Congress adjourns. But it is very
unusual for the Chief Executive not
to give Congress at its regular session
a schedule of expected expenses and
receipts. The coming election may
have something to do with it, as the
Democrats may be trying to keep the
figures from being used between now
and next November, believing that,
after the election, supplemental
statement can be issued which will be
beyond political attack.
Mr.. Roosevelt did another interest
ing thing in his budget message this
year. He estimated the total public
debt at the end of the four budgets
under his control as reaching s31,351,-
100000, but he omitted entirely any
mention of contingent liabilities of the
Government; that is, bonds and notes
guaranteed by Uncle Sam and just
as much part of his debt as any
ether obligation. These amount to an
additional s4,530 100000, or a total
public deot of $35 ,881 900 900.
Nor is there anywhere in the formal
budget statement, which. is printed in
q. big volume about the size of a New
York City telephone directory, any in
formation as to how much of these
contingent liabilities ultimately will be
directly payable by the Government
because of a default on the collateral
held.
Not Permitted Private Firms.
Any corporation which attempted to
get the permission of the Securities
and Exchange Commission to issue
new bonds to refund old ones or to
borrow new money would have to Ger
tify as to the value of all its assets or
have a certified appraisal of some
kind.
Nobody outside the Treasury knows
how much of the $4,000 900 stablli-
xation fund derived from the gold
profit has been used up and how much
Of the $1,327. 900, 900 invested in capi-
tai stock in various alphabetical agen-
cies and Government enterprises will
really be repayable. or when.
So far as the recoverable assets are
concerned, they are listed at about S3,-
166,000,000, exclusive of capital stock
Investments. But here again, nobody
outside the Government knows whether
they ought to be put down at 100 cents
on the dollar or at lower figure. Ger
tainy no public utility would get away
with a balance sheet or a profit-and-
loss statement made up in the form in
which the budget statement of Uncle
Sam is now given to the American
people, who supply, through their de-
posits in banks, the bulk of the funds
invested In Government securities.
(Copyright 1867