The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1938-07-14

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Preliminary calculations indicate
that the deficit-th expenditures
in excess of revenues -win be about
8 billion dollars. That much more
money was appropriated by the last
session of Congress than there is in
come in sight.
The deficit will be even larger un-
less business conditions improve be-
tween now and next March to the
point where great numbers of un-
employed can be taken off the Fed
eral payrolls and put back to work
in business and industry; for the
appropriations for w., P. A. and
work relief covers only a period of
nine months.
The estimate of billion deficit
is based upon spending commit
ments already made of about So
400, 000, 600, as against an estimated
Government income of somewhat
more that the $4,000, 100000 reve-
nue. for the fiscal year 1888, which
ended on June 80. IF that expecta-
ton is not realized, the deficit for
1899 will be even larger.
In the 12-month period just passed
the income-tax receipts reflected the
comparative prosperity of 1887.
While the tax law passed at the last
session of Congress was estimated to
yield $5,3OO,OOO,OOO income, observ-
ers here question the likelihood of
such a yield, in view of the present
business in general experience an
fall.
depression, unless industry and
Plans for Reducing Debts
Since every expenditure above
revenue must be met by borrowing
money, the outlook now is for the
increase of the National Debt to a
figure well above 40 billion dollars.
On June 80, when the 1888 fiscal
year ended, the debt was $685.
100000, by far the highest on rec
ord. It was more than IL billions
greater than the wartime peak of
rs billions in 1919.
The President has intimated that
he has under consideration some
plans for reducing the National
Debt. He did not disclose what par
ticular plans he has in mind. Sew
eral methods which are under the
Presidents personal control are be-
ing widely discussed here.
In international banking circles
the rumor has been persistent for
weeks that a further devaluation of
the gold dollar is contemplated in
The President was CIV
en- authority by Congress, in 1888, to
reduce the value of the dollar by as
much as so per cent. He did cut of,
by proclamation, a little over 40 per-
cent He still has power to declare
that the gold reserve, now about IL
billions in deprecated dollars, shall
be worth ii billions and a half, thus
cutting two and a half billions off I
the debt.
mnaClOn via silver
The President also has the power
to initiate the currency by the silver
route. The Government makes a
nice profit on its silver operations.
Under the Thomas Amendment to
the original A. A A. bill the Presi-
dent may fix the price paid for sill
yer and authorize its coinage into
silver dollars at the ratio to gold of
Is ounces of silver to one ounce of
gold.
AS the present value of gold S
$35 an ounce, that makes an ounce
of silver, when coined into dollars,
worth somewhat more than $2.18
an ounce. The Government has been
buying silver bullion at prices rang
ing from A to rs cents an ounce,
and now has more than billion
dollars worth of bullion on hand.
AS a silver dollar contains only
about five-sixths of an ounce of sill
yer, the Government can make more
than $1.50 an ounce profit by coin
ing silver bullions and putting the
coinage into circulation, in the shape
Of paper silver certificates; and the
President is authorized to do this
until the silver money amounts to
a quarter of all the gold and silver
taken together.
A third method of imitation which
is open to the President is to issue
3 billion dollars in paper money,
Governments promises to pay, with
out any metallic backing whatever.
That was also authorized in the ear
ly New Deal legislation of 1888.
He is hardly likely to take advan-
tage of his privileges, since to do
so would upset the whole economic
system of the United States and the
rest of the world and complicate
international trade relations.
Jimmy" Roosevelt Rises
Some 5 billions on our debt is
..ov,roCny,%o1 hx, loans ~ ode hxy tho