Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-06-25

few weeks. Two recent administra-
ton reports, however, have snapped
me back to realty. The first was an
address of Harry Hopkins. head of
the WPA, which w ~ RI! al the Blb-
son Institute Com Increment. Mr..
Hopkins presented 4 seriOu; doctrine.
He said that cutting cut the WPA
twill save business q lew pennies in
taxes but for every penny saved from
Uncle Sam it will hive to give dollars
to future depressions y" The present
government apparently feels that the
WPA is here to stay. 1t wants bust
ness to consider the resultant in
crease in taxes as an insurance pre-
MUM paid to delay the next depres-
sion.
Back in 1888 every one honestly be-
lieved that our relief program was
only an emergency measure. No one
dreamed that such a vast handout
would ever become permanent pO-
licy-that millions would live on the
public treasury forever! Federal au-
thorities see little hope of getting rid
of many welfare wards unless output
jumps 20 per cent above the 1929
peak. Their contention is that not on
ly has our population grown but few
er workers are needed because of la
bor-saving machinery. The increase in
machinery since 1929, however, has
been offset by the shorter work-week.
Moreover, our population growth has
produced only five per cent more
workers than we had eight years ago.
What Permanent Relief Means.
Hence, if output runs five per cent
above the 1929 level, every one should
theoretically be back on private work.
Industrial activity is nearly up to it's
old peak, but relief rolls show only
Slight losses. Moreover, there will be
no drastic drop while the present easy
policies are pursued. So long as gov
errors and mayors swarm. on Wash
ington like mad hornets whenever a
cut is announced, no economies can
be made. Millions who never did work
very hard will remain public charges
if WPA is to be a permanent policy.
The cost of their care will be about
s., 900 OO0,O per year. I see little hope
of balancing our budget while this
huge expense continues. AS all his
tory shows, there is only one outcome
of reckless national spending: This
is initiation. I
The second startling announcements
from Washington was an obscure re-
port that the Treasury would not
have to borrow new money to pay its
bills this year because it could use
Social Security taxes now pouring in
! believe in the basic principle OF So
cial Security. I do feel, however, that
| the terms of the present legislation
are not sound. I have long been afraid
that the temptatio.. 20 use the So
cial Security funds Tor the ordinary
day-to-day expenses cf the govern
rlent would be too great for the
Treasury to overcome. The recen'
rotice from Washington confirm
| these fears.
| Violating Trust.
Social Security money is in the ma
ture of a trust fund Washington is
| su! ,used to invest t., nett, n gov
eminent bonds so that when the time
comes to pay out there will be a suf
| ficient income to take care of ill
hose who have contributed. Approx
iating the receipts, as they come in
for running expenses and issuing
tonds against tne.n is Il dangerous
policy-e officially the violation of {
trust. The Old Age Reserve Fund is
expected to reach maximum of Owe
Sac, 900, 100000 within forty years. /
|. must he invested solely in government
bonds. Our Federal debt today, al
though the highest in history, is onl!
$36, 600, 100000. Hence. this encourage
spending by Congress m order to ere
ate enough debt so that it can borrow
all the Social Security fund and pa.
| interest on it.
If we are to continue with the pre-