Evening star., 1936-10-02
Income in 1888.

VlNlOu0 tAkA4tCA4A4S SAASAS SA wa ~
clining national income simply had
to be broken. The bankers and the
industrialists Of the Nation cried
aloud that private business was
powerless to break 1t. They turned,
Is they had . right to turn, to the
Government. We accepted the
final responsibility Of Government,
after all else had failed, to spend
money when no one else had
money left to spend.
Knew in 1888 That 1t
Would Cost Money for Years.
I adopted, therefore, the other
alternative. I cast aside a do
nothing or O wait-and-see policy.
As first step in our program. We
had to stop the quick spiral Of
deflation and decline in the ma
tional income. Having stopped
them. we went on to restore pur-
chasing power, to raise values, and
to start the national income up
ward.
In 1888 we reversed the policy Of
the previous administration. For
the first time since the depression
you had a Congress and an ad-
ministration in Washington which
had the courage to provide the
necessary resources which private
interests no longer had or no
longer dared to risk.
This cost money. We knew In
March, 1888, that 1t would cost
money. We knew that 1t would
cost money for several years to
come.
The people themselves UNDER
stood that in 1888. They under
stood 1t in 1884 when they gave the
administration a full Endorsement
Of its policy. They knew in 1885,
and they know in 1886, that the
plan Is working.
Now let US look at the cost. Since
we could not get the money by taxes
we borrowed it, and increased the
public debt.
President Hoover's administra.
tion increased the national debt in
the net amount Of over $4,000, ,000,-
600 in three depression years, and
there was little to show for it. My
administration has increased the
national debt In the net amount Of
about $4,000, 900, 900. and there is
much to show for 1t.
America Got Something
For Billions That We're Spent.
Put that figure Of eight billions
out here on the scoreboard and let
me tell you where the dollars went.
Over q billion and a half went
for the payment Of the World War
Veterans bonus this year instead of
in 1945. That payment is now cut
of the way, and is no longer a
future obligation of the Govern
ment.
AS for the other six and a half
billions Of the deficit, We didn't just
spend money-we spent it for some
thing. America got something for
what we spent-conservation of tu-
man resources through c. c. c.
camps and work relief; conserva-
tion Of natural resources Of water,
soil and forest: billions for security
and better life. While many who
criticize today were selling Amer
lea short, we were investing in the
future Of America.
Contrast these expenditures and
what we got for them with certain
other expenditures Of the American
people in the years between 1920
and 1880. During that period not
merely eight billions, but many
more billions came out Of Ameri-
can pockets and were sent abroad
to foreign countries, where the
money was used for increasing for
eign ornaments, for building for
eign factories to compete with us,
for building foreign model dwell
ings, swimming pools and slaugh-
ter houses, for giving employment
to the foreign unemployed-foreign
boondoggling, If you will.
Billions Spent Abroad
Gone From U. S. Forever.
Those dollars were just as good
American money-just as hard
earned-just as much the reward
of our thrift-as the dollars we
have spent at home giving work
to the unemployed. Most of those
dollars sent abroad are gone for
good. Those billions, lost to us
under previous administrations, do
not include the other billions
loaned by the United States to
foreign governments during and
Immediately after the war.
ask you the simple question:
Hasn't it been q sounder invest
ment for US during these last
three years to spend eight billions
for American industry, American
farms, American homes and the
care of American citizens?
I have used the figure Of $8,000,-
100000 as representing the net
increase in our national debt.
Immediately people will rush into
print or run to the microphone
to tell you that my arithmetic is
all wrong. They will tell you that
the increase in the national debt
Is 13 billions instead of eight.
That is technically and morally
just as correct as If some one were
to try to scare you about the con-
dition Of your bank by telling you
Of its liabilities and not telling you
Of its assets.
That is technically and morally
Just as correct as telling you good
people here In Pennsylvania that
none Of your bank deposits or in
surance policies are sound.
Increase In Assets
Figured at Billions.
When you are told that the
United States Treasury has 13 bill
lions more Of liabilities than it had
in 1888, you should also be told that
it has 100000 of increased
assets to set Of against these
lie tilit{a.