Evening star., 1936-05-29

10 support the foregoing COMMENT,
one has only to read statement read
to the United States Senate by Sem
ator Harry Byrd of Virginia, Dem
ocrat, who before coming to Washing
ton was one of the most successful ad-
ministrators the State OF Virginia has
ever had in the Governors Office.
II am astonished to discover" says
Byrd, that the administration pro-
poses to spend $500 900 900 more for
ordinary expenses and for relief in the
fiscal year beginning July next than
for the present fiscal year. With i'm
proving conditions I and nearly all
other citizens expected reduction in
the colossal spending program"
Quotes Official Figures.
Then Byrd proceeds to give the Off
cial figures, which he had elected by
letter from the director of the budget,
D. w. Bell, and which, as Senator
Byrd points out, show that there will
be deficit for this fiscal year ending
June 80 of nearly $4,000, 900 900 or
about So, 100000 without the SOL
dier bonus. Last year the deficit on
June 80 was $3,575 100000, so the
deficits are going up instead of down
entirely apart from the bonus. Yet
recovery is supposed to be here or on
its way.
What is more striking. however, in
the opinion of Byrd is that on May
l there was not expended from pre-
vious authorizations some So, ,000,-
600 and Of this amount S750,000,000
was not obligated and yet Congress
is being asked to pass another heavy
relief bill Notwithstanding the bal
ances on hand"
What is bound to cause much sur
prise also is Senator Byrd's further
observations.
"In 1887 We will collect in taxes
s1,6OO,0OO,O0O more than in 1896 and
still the deficit continues in an alarm
ing amount"
Receipts Above 1888.
Byrd took from the budget direc-
tors letter the estimates Of expected
receipts and expenditures. The re-
ceipts, for instance, are predicted at
S5,5e6,9l7 $50, which is larger than
any year since 1888 and much larger
than most years prior to 1888
AS for the expenditures, the next
years estimate is S8,272, ,554370, which
is larger than the years 1888, 1884 and
1885, but not as large as 1886 be-
cause s2.237 100000 of bonus is in
cluded in 1886. But Senator Byrd
calls attention to the fact that the
proposed expenditure of sS,272 ,SS4,SfO
in the next fiscal year docs not in
clude the flood control bill and other
appropriations recently enacted"
Thus we have rising curve of re-
ceipts, a rising curve of expenditures
and deficits that continue above So
900 900, 900 a year, making the public
debt of the Federal Government higher
than it ever has been in history-it
is S32, 900 900 900 already. All this is
exclusive of the State and city debt,
which is in the neighborhood of S20,-
0OO, 900 900, so the United States now
has a governmental debt of one kind
or another that exceeds s50,000,-
100000.
Taxes May Backhre.
Since debt can only be paid out Of
receipts from taxes or borrowings out
Of the savings of the American people.
the test at this session of Congress
has been whether taxes could be ma
terially increased. Taxes are close to
the saturation point already; that is,
they are approaching the point where
the cost of food and necessities of
life may soon reflect the higher taxes
and cause q curtailment of consump-
tion and hence more unemployment.
What Is the answer if there is no
further tax money! The unsound route
is printing press money which breaks
down faith in all money-this is not
desired or countenanced by any re-
sponsible leader of the adninistra-
ton or by its opposition. The alter
native remaining is to prune expenses.
Senator Byrd himself wants that
solution For he suggests q ,reduc-
ton in spending equivalent to the new
revenue anticipated" He wants the
1887 appropriations to be cut to the
basis Of 1896 "and the tax bill can
await a more matured consideration
at the 1887 session and the deficit
will not be increased"
Election Fear Paramount.
But the truth is this is election year.
The Democratic administration does
not dare to cut expenses now in the
face Of the November elections. When
the elections are over-no matter
which way they go-there will be con-
siderable use of the pruning knife and
plenty of protests and clamor as pet
projects are Topped of.
Meanwhile. members of the United
States Senate, accepting dictation
from the White House, refrain from
insisting on a cutting down of expense
and the opposition party is presented
with a campaign issue Of more i'm
portance than all the New Deal social
objectives For it will be asked of
what avail are the social objectives
If the credit of the Government is
impaired. President Roosevelt's state
ment to Congress March 10, 1888, will
be quoted against him again and
again. For it will be recalled that
he said:
For three long years the Federal
Government has been on the road
toward bankruptcy . Thus we shall
have piled up an accumulated deficit
Of $5,OoO,O 100000. Upon the unim-
paired credit of the United States
Government rest the safety of de-
posits the security of insurance poll
cies, the activity of industrial enter
prices, the value Of agricultural prod