Evening star., 1936-01-23
S9,417,0)O,0[lD DEBT
gain SEEN IN j. S.
Bonus Included, Plans Call
for Skyrocket Rise in
New Deal Shortage.
BY DAVID LAWRENCE.

VUCluOC1o Va SoAA9ACoo Wv >AOS >-.~---
tionally make mistakes In describing
the status of the public debt or its
Implication, so Representative Vinson
of Kentucky, Democrat. who made
certain errors in his speech to the
House during the bonus debate Is to
be forgiven any wrong intent. But
in the interest Of accuracy and public
knowledge Of the direction which the
state of finances in the Government
is taking, the speech ought not 60
uncorrected.
Mr.. Vinson held in his hand as he
spoke a copy of the January 13 issue
of the United States News, in which
appeared balance sheet Of the public
debt showing that, after giving due
credit to all cash and recoverable
assets, the amount to be raised by
future taxation was estimated to be
about $26,346, 100000. Said MIR.
Vinson:
"Mr. Speaker, on February %, 1888,
the Indebtedness of this country was
$2O,713 100000. When we subtract
that figure from the amount to be
raised by future taxation. using the
United States News figures, We have
$5,633 100000. I say that that is a
very favorable comparable figure to
the expenditures that we saw in the
Hoover administration; in other
words, q debt increase from $16,000,-
C O00,0 900 to over SIC, ,000, 600, 900 during
those four years."
Forgot Major Assets.
Now Mr.. Vinson forgot to subtract
from the public debt prior to the
Roosevelt administration approx
mately $2,2S4 100000 of recoverable
assets acquired before Mr.. Roosevelt
was inaugurated. Mr.. Wilson's speech
really should have read as follows:
''Mr. Speaker, on February %, 1888,
the indebtedness Of this country was
S20.7l3, 200, 900. From this figure
should be subtracted $2,2S4. .000, 900 OF
recoverable assets acquired by the
Government prior to the Roosevelt
administration, so that the net in
debtedness of the country was really
Sl8,429, 100000 on February %. 1888.
when we subtract that figure from
the amount to be raised by future tax
alton, using the United States News
figures, we have $7,9l7, 100000. say
that that is q very unfavorable COM
parison to the expenditures that we
saw in the Hoover administration
in other words, q debt increase from
SIG, ,000, ,000, 600 to $18,429, ,000, 900 dur
ting those four years, as compared with
. debt increase under the Roosevelt
administration of $7,917, 7,00o, ,000."
Load Recently Increased.
Unfortunately, since that balance
sheet which Mr.. Vinson fiourished
before the House Of Representatives
was published, Secretary Morgenthau
has revealed that the estimate for
work relief will be 100000 900
instead Of the $1,000, 100000 which
the United States News had esti-
mated. Likewise, the farm program
expense Is now to be at least $780,
100000 to replace the A. A. A. that
was held unconstitutional. So total
Of $500, ,000, 900 must be added to
the amount estimated to be raised by
future taxation or borrowings. and the
figure of $7,917, ,000, 900 for the Roose-
welt administrators indicated deficit
must be changed to read $9,417,0O0,-
900, which is just about four times the
deficit under the Hoover adminiStra-
tion.
Now the Hoover record Of deficits
was nothing to be proud of, as Presi-
dent Roosevelt himself said to Con-
gress on March 10, 1888. when he
thought America had been on the
road toward bankruptcy" and so, too,
. New Deal deficit Of $9,417, ,000, 900,
after giving due allowance to gold
profits, cash on hand, and recoverable
assets, Is certainly not deserving of
any cheers either.
Notwithstanding all these deficits,
the House followed the Senate rather
promptly in voting for $4,000, ,000, 900
bonus, which, by the way, Is included
in the $9.417, ,oO0, 900 figure mentioned
above. Just where all this money
is to come from is hard to conjucture
It certainly can't come from the
upper brackets, even il 100 per cent
of all the incomes over So, 900 q year
are to be conflscated. The only alter
native is indirect levies on the masses
in the form Of sales taxes or direct
taxes. It Is simple enough to author
lie appropriations, as Congress does
right along, but its another thing
to md the revenues to meet the ex-
penses. In the last few years, the
job has been done largely by bor-
rowing. The big question America
faces Is how long this borrowing can
be continued. and on that subject |
there are few speeches nowadays In |
Congress.
(Copyright 1Q36l