Evening star., 1937-04-24

years the Federal IA 8
Government has ,
been on the road
toward bankruptcy
With the utmost seriousness I
point out to the Congress the pro-
found effect of this fact (the Hoover
defcit) on our national economy.
1T has contributed to the recent
collapse of our banking structure.
1t has accentuated the stagnation
of the economic life of our people.
1t has added to the ranks of the
unemployed Our Governments house
is not in order and for many reasons
no effective action has been taken to
restore it to order"
Four long years have elapsed since
Mr.. Roosevelt made that address to
Congress. In those four years
deficit has been piled up aggregating
more than twice as much in amount
as he thought was staggering load
and one that was leading us on the
road toward bankruptcy
Roosevelt Added S14,S59, 1000
Using the Treasury Departments
own figures, which attribute to the
Hoover administration total deficit
of S3,491 100000 up to and including
March 8, 1888, the Roosevelt deficit
has added an extra S14859, 100000.
The official figures of the Roosevelt
deficits are as follows:
From March 4, 1888, to June 3O
1888. 1892 100000.
Full fiscal year ending June 80,
1884. S3,629,0O0000.
Full fiscal year ending June 80
1885, S3,001 100000.
Full fiscal year ending June 80,
1886, S4,361 900 600.
Full fiscal year ending June 80,
1887, 2,557000,OO0.
Full fiscal year ending June 30
1888. S418. 100000.
Total S14,859, 100000.
The last two fiscal years, of course,
are estimates, but the present year,
which ends on June 80, two and half
months away, is very near what it
will turn out to be. AS for next year,
the estimated deficit depends on how
accurate the Treasury is in its guess
as to taxes to be collected. Its eSti-
mates were proved wrong this year,
that is. way too high.
All the foregoing figures are exclu-
sive of debt retirement.
The cumulative deficit, that is the
s3,49l 100000 of the Hoover adminis-
tration and the S14,859, 400, 900 of the
four Roosevelt years, makes total OF
Sl8,35l 100000 for the red ink of the
Federal Government in seven years.
Roosevelt Cuts Deficit.
1t is being asked, of course, how it
happens that when the Hoover de-
ficits were plunging America on the
road to bankruptcy" with less than
S4,OOO,000 900 an extra $4,000 100000
is considered less dangerous?
The truth is the President has been
hoping each year to bring the de-
ficits down materially, but has not yet
succeeded in having a single year in
which the deficit is less than the worst
of the years during which President
Hoover was in office.
Back in 1888 the President outlined
to Congress the essentials of the debt
problem and their relation to the
economic welfare of the country. He
said:
Upon the unimpaired credit of the
United States Government rests the
safety of deposits, the security of in
surance policies, the activity of in
dustrial enterprises, the value of agri-
cultural products and the availability
OF employment.
The credit of the United States
Government definitely affects these
fundamental human value. 1t, there
fore, becomes our first concern to
make secure the foundations. Ma
tional recovery depends upon it."
Expense Curve Goes Up.
Now, however, recovery is supposed
to have been achieved during the
first four Roosevelt years or at least
to have been so substantially assured
that the American people last Autumn
presumably forgave the large eX-
penditures and reelected the ad-
ministration which had promised them
balanced budget. The curve of eX-
penSes is going up Notwithstanding
recovery. The number of unemployed
is still very large, but by no means
as large as four years ago. On the
other hand, the administration Is
afraid to count them for fear the
actual number getting relief will be
revealed as a greater expense than
Is warranted, now that recovery in
large measure is supposed to have
been attained
If the credit of the United States
Government remains good, it will
be because the people become con-
vinced that ultimately their wishes
will be followed by Congress and
the President, and that expenses will
be materially reduced. When diff
ferences of opinion arise as to whether
this task will be fulfilled, the prices
Of Government bonds f1uctuate Just
now governmental policy as to future
expenses and future tax receipts is
somewhat indecisive and indetermi-
nate. Hence, the risks pointed out by
the President in March, 1888, again
become pertinent for consideration.