The Republican. [volume] (Oakland, Md.) 1877-current, 1937-09-16

PRESSURE from Lne mayors lODDy was
too great on one hand and pressure
from the departments too great on the
other. Both proposals were killed and
with them went all hope of an approx
mate balance this year, or next year,
or the year after that. In the seven
months that have interviewed since his
last economy declaration the number
of civilian employees on the Federal
pay roll has been increased from $751;
900 to $4,000 and there will be further
increase by the end of this month. In
the same seven months the national
debt has increased from around $685.
000,000,000 to over $4,000, ZOO, 900,
the peak for all time-ten billion
greater than at the time of the armis-
tice and Sixteen billion more than
when Mr.. Roosevelt became President.
Despite great increase in revenues,
when the bonus payment Of two bill
Ion is discounted, it is found that the
deficit for the past fiscal year is bill
lion more than for the year before.
So far as the future is concerned, so
far as the present fiscal year is con-
cerned-the one in which Mr.. Roose-
welt promises US an "actual' balance
would be achieved and which began on
June 30-the prospects can be judged
by the following figures for the first
forty-four days-from July 1 to Aug
ust 10, inclusive
Expenditures -. 1885,, 805, 1884
Receipts ........ 675,375, 562.55
Deficit .......... 279, 429, 621.39
The plain fact is that while revenues
have been vastly enhanced by increased
taxes and better business, expendi-
lures have more than kept pace with
income. More money is being spent in
every department than before and al
though Mr.. Roosevelt is talking econ
omy again, urging Government agen-
cies to make a voluntary reduction in
spending and holding out hopes that
by withholding funds he will be able to
achieve a better proposition between
outgo and income, he has done and said
all that before and nothing real has
come of it except high expenditures
and heavier debt.
$50
1t is true that Government borrow
ing has ceased and that the debt is to
be Stabilized" at its present $37,OOO,-
100000 figure. But that is only be-
cause the proceeds of the Social Secur-
ity tax now beginning to flow into the
Treasury are being used for current
expenses. The law requires these funds
be invested in Government securities.
Thus the Government, instead of Dor
rowing from the banks or the people
is borrowing from itself. The ease
with which this can be done is terrific
temptation to make free with what is
essentially a trust fund. Soon or late
the law which permits this sort of
thing will have to be changed. 1t does
not ameliorate the Tresury's situation.
1t does not obviate the dangers of a
deficit. 1t is, in fact, more dangerous
because it enables the Treasury to es-
cape facing the realities of its situa-
ton, camoufages the facts and enables
it to carry on for an indefinite period.
In other words, it postpones the
smash-and it makes it considerably
more difficult for the people to grasp
the true condition. The real hope in
the situation is that the time will ar
rive when the great middle class OF
the country will connect the increased
cost of living with governmental ex-
travagance. There are beginning to be
some signs of that now. The steep rise
in the price of foodstuffs and clothing
is beginning to make wage earners
and hosewives restless and thought
full. Once let the truth permeate that
in this way they are being made to pay
for the extravaganza and experiments
of the New Deal and they will send
Congress to Washington so strong for
economy that even the President will
not be able to prevent drastic action.
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