Evening star., 1937-12-17

Roosevelt admin
istrations, has announced his inten-
ton or asking Congress to cancel
these debts.
1t b natural for some such action
to be proposed because otherwise the
sums stand on the books as assets
that really are not going to be re-
covered. Much criticism has been
visited on the Treasury for counting
as assets some of these sums which
will never come back.
But when the S2,675, 100000 sum is
analyzed, it is interesting to find that
$1,783, 100000 was spent for direct
relief, while $500,000,000 was allocated
to the Federal emergency relief ad-
ministrator" in 1888, 1884 and 1885.
Apart from this about $4,000 1000
was advanced to States and munich
palities in 1882 and 1898.
Would Seem Wise TO Pay.
The important question for tax
payers to consider is whether the re-
cipisnts of this money can pay not all
Of it but some of it back. Thus the
States and municipalities will always
have the taxing power and even if it
takes Is years to pay back these
borrowings, it would seem wise for
!. those communities to pay back sub
stantial part if not all of what was
borrowed. To do otherwise is to put
some States and municipalities in a
better position than others which
financed their relief out of their own
borrowings and are now asking their
taxpayers to meet the obligations
incurred.
AS for the sums spent in relief, an
accounting of what was done with the
$500, 100000 spent by the Federal
Emergency Relief Administration
would soon reveal whether anything
is recoverable. But it does certainly
seem as if the citizens who received
$l,783, 100000 ought to be asked to
give Uncle Sam some sort of an
I. o. U. payable without interest but
some time in the next 10 years or so
when they begin to make money
again.
Some May Wish to Pay.
It is, of course, probable that some
of the citizens will want to pay back
something to the government and will
not want to feel that they accepted a
direct gift especially if later on they
came into funds again. But there are
other citizens who will feel that the
Government owed them living dur
ing the depression and that it isn't
necessary for them ever to pay any,
thing to Uncle Sam.
Such spirit would tend to break
down the whole attitude of self-reli-
ance which has made nations virile
and productive. There are doubtless
many persons in the very lowest in
come brackets who never will be able
to pay back what they received in the
way of relief, but it would seem in
credible If out of the $1,783, 600, 900
the Federal Government couldn't get
some of 1t back.
The bill proposed by MIR. Jones
ought to be passed SO as to make our
BOOKKEEPING show the item no longer
as an asset, but at the same time the
legislation might well provide that the
municipalities and the citizens who
received direct benefits should be re-
quired over a period of years to make
some form of restitution.
When Congress considers this debt
cancellation, the American taxpayer
who will have to pay the bill may not
OF course, find the payment on his
part cancelled. 1t merely means that
the Treasury will no longer carry
$2,675, 100000 as recoverable assets"
and not that the borrowers or bene-
hciaries should be immune from paw
ment. Banks frequently write off"
debts on their books or set up re-
serves against them, but when pav-
ment is made by the borrower the
Items are credited to "recoverjes
Perhaps the Treasury will deal with
the matter In much the same way as
the banks, though doubtless much
money has been spent in administra-
tive costs and for experimental rroi-
ects and payroll which can never be
recovered
The least the taxpayers who are
going to foot the bill can demand is
to be told just how and where the
money was spent, how much went for
relief and how much for salaries and
4 overhead. Our experience of direct
relief is something that ought to be
historically recorded in much detail.
(copyrisht. 1937.)