The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1938-02-17

ministration having knowledge of
their general attitude toward the
New Deal. There actually may be
something to the charge that was
variously hurled in the sessions that
chairmen were hand picked and
that there was a bit of log rolling
done, just teeny, weeny bit of it.
Concerning the after-effects, one
can hear many observations. Some
say that the bulk of the small bust
ness men went away from Washing
ton nursing grudge; others add
that many of the delegates went
back home with sour idea of gov
eminent conferences and, therefore,
with willingness to ridicule the
administration, and still others hold
the conviction that the very confu-
sion that came from the meeting
provided Mr.. Roosevelt with the
horrible example that he wants in
his criticism of business leadership.
1t seems to me there is ground for
each of these three conclusions.
Time, alone, will disclose the ulti-
mate effects. Mr.. Roosevelt may
utilize the recommendations in a
fireside chat or a message to con-
gresS. Some of his advisers may
bear down on the lack of agreement
and understanding among business
men. Or, the whole thing may be
treated very seriously and an at
tempt made to convince the country
that the administration is being
guided by what it believes the bust
ness interests want-as shown in the
recommendations of the conference.
The Treasury laid some stress on
announcement the other day that it
will begin series
Treasury of borrowings late
to BorroU this month that
likely will be the
last borrowings by the federal gov
eminent sin this generation. It
was stated that between 200 and
300 millions will be borrowed dur
ing the next several months, but
that June tax payments and subse-
quent collections will provide mon
ey for current needs. That is to
say there will be no need for "new
money" which is money borrowed
out of the money market or banks.
It has not been made clear how
the Treasury will accomplish the
objective of cessation of borrowing
at this time. President Roosevelt
has predicted that there will be a
deficit Of about one billion dollars
in the next fiscal year. A Treasury
deficit can mean only one thing,
namely, that the amount of income
is less than the amount of the ex-
penditures. Something appears to
be screwy in a circumstance where
there is a deficit of a billion and
only a few hundred millions have
to be borrowed. "a
However it may be accomplished,
it is hopeful to think that borrowings
are going to be terminated. The
Treasury has been doing it for a
long, long time. think it is about
nine years that the Treasury has
faced a deficit each year and there
has been new money borrowed to
pay the bills. Those borrowings
ranged anywhere from half a bill
lion during 1880 to more than four
billions in 1888 and 1884.
The Treasury's announcement ex-
planned that the Treasury would re-
ceive more than one billion dollars
for the account of its trust funds
during this year. Trust funds are
segregated moneys, such as the
fund for payment of social security
benefits. Well, it strikes me as a
bit unfair to say the Treasury will
not borrow any new money this
year when it actually is borrowing
from the social security fund. There
is no violation of law in that course,
because the law says the social Sc
curity funds must be invested in
government bonds.
The borrowing from social secur-
ity funds calls attention to anoth-
er phase of gov
Announcer eminent finance.
Phase Those funds come
from y r o
taxes. They are taxes paid by the
workers as well as by the employer.
1t has occurred to me, therefore,
that unless the government reve-
nue. can be made to balance its ex-
penditures, sometime in the future
workers will want to obtain payment
under the provisions and there
will be nothing but government
bonds in the fund. Further, there
is every possibility-indeed, I be-
ieve it is a probability-that these
payroll taxes are going to bear
more heavily on the workers of the
future than they do today.
There seems little doubt that the
social security dream is here to
stay. Unworkable as it is, there
will be no politician with sufficient
courage ever to tell the voters of
his constituency that the social Sc
curity act will fail. Some of the
advanced thinkers" among the
New Dealers have had spasms when
remarks like that were made in
their presence. The real spasms,
however, will develop when the pub
lie is given a clear understanding
of what that law does to a civiliza-
tion-when it is shown by opera
ton that the ideal of protection
takes much more out of the pockets
of those who are supposed to benefit
than they ever can get back.
g Western Newspaper Union.