Evening star., 1937-08-31


many millions higher than last year
and why The deficit is already larger
than the deficit for the corresponding
period last year.
Theoretically the administration has
prlmed the pump and has spent nearly
SlS, 200, 100000 in four years doing it.
Inc public debt was about S19,OOO,-
100000 in 1888 and it is now s37. 7.OOO,-
100000 Back in March, 1888, Mr.,
Roosevelt spoke of the three successive
years of Hoover deficits and said to
Congress:
For three long years We have been
on the road toward bankruptcy"
The present administration now has
mad four successive years OF deficits
and the present year is running higher
than the preceding one
Prosperity on Quicksand.
II Mr.. Rooseyelts warnings in 1888
And his reasoning with reference to
impaired credit are accepted as sound,
then America is threatened with fiscal
bankruptcy. The prosperity of which
Mr.. Farley boasts is built, then, on
The 'priming of the pump" by Gov
ernment funds must sooner or later
be replaced by private funds-private
employment. But the administration
has placed, and is placing, many bar
riers in the way of expansion or de-
velopment of private business and in
dustry.
Mr.. Roosevelt has made so many
attacks on business and business men,
has encouraged such class feeling and
bitterness, and has allowed irrespon-
sible groups to force prices upward to
such an extent that the whole eco
homie structure is being inflated in
unhealthy fashion. just as it was in
1928 and 1929. Only this time it IS
the influence of government itself
which is creating the unsound condi-
! tions.
This Autumn will see the begin
nings OF price spiral that may 90 on
for two or three years before the
climax comes, but it is an inevita BILE
trend. The administration is forcing
higher and higher the cost of living.
Taxes Rise on Every Side.
On every side taxes are mounting
and these are imbedded in the sales
prices Of foods and commodities. The
: tax load Of the Nation is slowly ap-
oaching the breaking point. AS
prices rise, not all of the consumers
are able to meet the increased costs
OF living, Fewer articles are bought,
substitutes are used, old products are
held longer before being replaced, and
finally, as production is curtailed, un-
employment starts again.
Then prices will fall again and un-
used surpluseS will grow. The New
Deal has made no satisfactory answer |
'or any answer, for that matter, to |
the contentious made by economists |
who foresee an economic collapse due |
to unsound governmental policies.
Some hint of what is in prospect is
the frequent assertion that national |
inf fwill be raised some day to
81 100000. This can be done
by Imitation, but once such an inflated |
level is reached the defationary trend
will set in. 1t Is then, when prices
fall, that devaluation may be tried
again
Showdown Due Eventually.
The manipulation of the monetary
system and the continued issuance of
printing press bonds with gold back
OF only third of the securities is
sued-and none of the gold available
Tor redemption to the citizens-means
that some day the public will demand
showdown. Today the people believe
the social security taxes are being put
IN trust fund and the cash invested
Tor them. Actually, as fast as the
social security money comes in it is
used to pay current expenses of the
Government and an II. o. u" is is
sued by the Government to the So
called trust fund. These I. o US be-
come part of the public debt and will
not have any better status than any
other printing press bonds and no
higher market value or redemption
value once Government borrowing
reaches a point beyond which the pub
lie thinks there will be no tax moneys
or receipts in sufficient volume to meet
those stupendous obligations.
In the midst of prosperity" like
1929, there are reasons for worry, but
nothing is being done about it by
the Democratic administration-pol
ticians never do anything to prevent
panics, but they are very quick to
shift the blame from themselves when
panics come and hardships are wide
spread.
Copyright. 1879