Evening star., 1936-08-14
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Under existing circumstances yeSter-
days hurried conference at the White
House and the ensuing publication of
Secretary Morgenthau's optimistic let
ter concluding that no new or higher
taxes are necessary are highly favored
with political implications. That sort OF
thing is fine campaign material. Fur
thermore, there is certain sardonlc
humor in an announcement that no new
taxes or higher taxes are considered
necessary when the announcement is
made less than two months after ad-
journment of a Congress that was held
in Washington overtime to complete
.rs-U tax bill designed to raise about
$500 600 900 on top of previously boosted
surtaxes going as high as seventy-five
per cent.
But aside from that. Secretary Nor
genthau and the presidential conferees
are presumably looking ahead, beyond
the current fiscal year and the next
session of Congress. Claims that the
announcement at this time has anything
to do with political considerations would
be indignantly, if not piously, denied.
The best assurance that no politics Is
involved, however, would lie in Secre-
tary Morgenthau's taking the Nations
taxpayers into his confidence and re-
vealing the basis upon which he and
his Treasury experts have arrived at
their important conclusion. If the con-
clusion is sound, and everybody natu-
rally hopes it is sound, it is presumably
based on something more tangible than
obvious generalities concerning the TACT
that revenue receipts are increasing with
the gratifying business revival-of which
there is evidence everywhere-and that
relief expenditures will diminish.
The taxpayers should be given some
of the encouraging data that must be
in the hands of the Treasury experts.
Otherwise they are too apt to conclude
that politics has figured in wishful think
ing bv the administration. The Repuo-
lcans have been turning the heat on in
paign issues, the extraordinary expendl-
lures of the Roosevelt administration
and the inevitable increase in the our-
den of taxation which, it is generally
agreed, such expenditures forecast. II,
as Senator Harrison has suggested, there
has been Misrepresentation about the
tax situation, then the best way to clear
that up would be to represent the tax
situation correctly.
For the past six years the Federal
Government has been unable TO meet
current expenditures from revenue. For
the past three fiscal years the deficits
expenditures in excess of revenue-have
been: 1884, $3.50 ,496o o35; 1885. s3575,-
357,ee3; 1886, s4,6S4, ,94o,227, and for the
current fiscal year the estimated deficit
has been placed by the Treasury at
about s2,75O 100000. The public debt
stands today in excess of $50, 400 0,OOO,ooo'
in comparison with $29075, 100000 last
wear. On the other side of the picture
there is a gratifying increase in internal
revenue collections, gain OF s67l 7l,oS9,oof
In 1886 over 1885. The increase con-
tinues, collections for June this year ex-
ceeding those of the comparable month
last year by more than $50,000OO0. But
the deficits and debts have grown faster
than revenues, and the Government Is
still spending about two dollars for every
dollar taken in.
The figures and estimates OF the
Treasury are one thing. These may show
a trend which, if continued. would bring
the budget into balance in 1888. But
there is vet another consideration which
deals with an unknown factor-the ap-
propriating tendencies of the next Con-
gress. The past Congress, in its two
sessions, appropriated total OF more
than $40 ,OOO, 900 900, peace-time record.
What the next Congress will do, nobody
can say. If Mr. Morgenthau's asSump-
ton is correct and no new taxes are
necessary, his forecast is contingent not
only upon continued, increasing rev.
enues, but upon sharp curtailment OF
expenditures. And if these two elements
bring the annual budget into balance
there still remains the tremendous debt
and the requirement that its orderly
liquidation be speedily begun.
AS a producer of good campaign ma
terial, the conference yesterday was
highly successful. AS convincing assur-
ance to the taxpayers, it should be ac-
companied by some plain facts and
figures