Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1936-06-18

Our ing very timely in
n..LI;. Debt quiry concerning the
public debt Of the
Tinted States. It is timely for more
thon one reason. The United States
government operates on fiscal year
running from July l to the next June
On and we are, therefore, just about
IN close another fiscal year. A second
roason why this inquiry is timely re-
lates to the size of the present public
debt, almost $32,OOO,O00.0O0.
Our public debt has surged higher
than normal during two periods Of the
last twenty years and the course of the
debit therefore, is one with which most
mature persons are more or less IA
miliar. But 1t remains as fact that,
while most people are informed con-
cerning the total of the national debt,
they have not had opportunity to learn
exactly what 1t means to the indi-
f yidual.
Treasury transactions, as a whole,
are rather difficult to understand and
since the sums in which government
figures now run are so huge, the gen.
eral attitude Of individuals is to let the
. thing pass as matter for expert at
tention. 1t ought not to be so. The
. public debt Is matter of direct con-
Germ to every one of us and that Is a
further reason why the inquiry men,
toned above Is important.
have often wondered whether indi-
viduals, in considering whatever obli-
cations they have in the form of debt,
take into account the fact that the
i public debt actually Is a commitment
against you and me and everyone else.
Persons who have not so thought of
the public debt, probably will be
shocked to learn that in addition to
their obligations that have been con-
tracted personally, there is something
like $245 which, although an infinitesi-
NAL portion Of the public debt, consti-
tutes actually an individual obligation.
Therefore, when any person looks at
that vague and shadowy term, "the
public debt" in this light, they cannot
help but realize that it has a very real
and personal meaning to the individual.
That enormous sum of nearly $4,000
100000 must be paid off as any other
debt and the government must col
lect 1t from everyone who lives in this
country.
Again, the public debt may seem a
thing far removed but it Is brought
home directly to each of us through
the taxes we pay and in more WAYS
than most Of us care to admit we are
contributing that tax. So, when the
government contracts a debt and ar
ranges to pay 1t off, the only way col
lection is possible for the extraordinary
amount is by increasing the share of
. government expenses which each of us
bears, meaning of course, an increase
In our tax.
In 1857, the public debt was only
%S7OO,OOO. In that year, each per-
sons share was only
some $1.O1. With the adj
History vent of the Civil
war, the govern
meht needed funds and began borrowing
audlnonal amounts until in 1866 the
eeot reached what in those days was a
mgh fgure-$2,75O,OOO,OOO. At that
ume' each persons share was $77.69.
GOOD administration and sound finan-
clai policies followed and the debt was
feuuced, paid off, until during the
early l9O0s, the debt was reduced until
sacn PERSONS share was something
less than SIT.
communal retrenchment was carried
On until the World war interrupted the
program and fresh borrowings were
necessary for prosecution of that
great conflict. The borrowing Of the
war Jays carried our public debt to
a new high point of SIG, 594 100000 on
August 10, 1919.
Inc debt because It was a new
peaA' looked insurmountable and 1t
"as dangerously high but through the
"umnistrations Of Presidents Harding
snu Coolidge, the job of paying off the
u ueOl was seriously attacked and this
yiOsram eventually resulted in reduc-
o %Un OF the debt to about $16,5OO, OOO.-
Wv uuring the administration Of Presi-
dent Hoover.
!" was from this low point that the
p p.esent debt burden has mounted and
os'inues to climb. The depression
sUs Deu government income from taxes
tnu lert the treasury with a deficit In
nv years OF the Hoover regime.
ne result Of those deficits was to in
nv HeaSe the public debt because money
, r~u., 70 be borrowed to pay current
NJ. ils expenses. The borrowing did
a. appear serious, however, either
ad, u.e last two years of the Hoover
sSru,n demonstration or the first year of the
booa.-u S'ration Of President Roosevelt
CONFUSE ouaase Mr.. Roosevelt had pledged the
mutt ry curing his campaign to econo.
nro Se IN every direction. 1t was his
turoa Use p tnat he would curtail expendi-
tba Oy one-fourth and therefore make
man. Vutso and income of the govern
Irs. unfortunately the same.
inltIat tesu OF that course, Mr.. Roosevelt
narS %.eu the present program of ex-
Mo" In huge amounts. The first
o.. A called for the use of vast sums
AOt eXDpnditr.o " vast sums