Evening star., 1938-07-31

NfAllllCCG, . y
o. ...- dent of the Ma
~ ~ tional Committee
to Uphold Constitutional Govern
ment, which is batting for the Liberty
League that institution having gone
into partial eclipse for obvious rea-
sons, made a radio speech in which
he mourned over the terrible financial
plight OF our country and, to illustrate
the depths of our misery, adduced that
Great Britain was enjoying unusual
prosperity until the American depres-
sion began to have its effect on Lon
don. Great Britain still Is far better
of than are We"
This statement in one form or an
other has been repeated so often that
in time somebody might believe 1t.
The folks that want to make hor-
rible example OF us, chargeable, OF
course, to the Roosevelt administra-
tion. never specify wherein England
has the bulge on us. Our standard OF
| living is very much higher than that
of the English people and the COM
parison between how We have inn
proved conditions and the way they
have is all in our favor In such In
tangible things as education, better
living conditions, rescued homes and
farms, to say nothing of the new
bridges and roa ds. and public build
ings. we put large share of the relief
money, while our neigfbor overs as
put practically all Of hers into doles.
And this is not to mention Great
Britains immense expenditures for
arms and armament, which are not
only unproductive but may all be COM
pletely destroyed.
Perhaps the easiest way to figure
the relative size Of the national debt,
over which the administration critics
have been doing so much mourning,
is to split it up on the basis of popula-
ton. II we had to pay tomorrow the
whole amount of our debt and We
divided 1t up evenly each inhabitant
of the United States would have to
come across to the tune OF s286. If
the same process was applied to John
Bulls tight little isle, everybody over
there would have to pay about S735.
Great Britain's Greater Burden.
OF course, that is only one method
of comparison, subject to the fault
that in the nature Of things the desti-
tute could not pay anything and the
better circumstanced people would
have to make it up. Let us tackle the
matter from another and more definite
viewpoint. Our Understanding public
debt. as OF last March. amounted
roughly to $4,000, 100000 Our ma
tional income, at the same time land
| by national income is meant the in
come produced by all the people,
figured .s00,o0o,o0o. At the same
time. Great Britain owed. excluding
the war debts. about s35o00, ,0000 900
and her national income. according to
the London Economists estimate, was
approxima tely $4,000. 100000. This
means that our national income could
pay our debt nearly two times over.
while if all the income of the people
OF Great Britain were applied to pay
ment of their interest-bearlng debt.
they would still owe $4,000. 900 900.
And this does not include the war
debts. on which that nation has de-
faulted.
John Bull is not worrying over the
excess Of his liza abilities over his income,
while Uncle Sam. if We take the Can
netts to represent him, is constantly
getting goose flesh over what We owe.
We would have to have a debt of $780,
900 000, 900 to parallel the British situ-
alton. We could owe $4,000, ,000. 900,
and be as sAXent as Japan and We
could owe $1,eD00, 100000 and still be
| as solvent as France.
| Perhaps the Jeremiahs would not
oe satisfied even with this basis OF
comparison, inasmuch as the Govern
ment debt must be discharged out Of
Government revenue. All right, We
will take that for basis.
| Our receipts from taxes last year
amounted to about six and a quarter
billion dollars. Great Britain, with
ner higher rates. only realized q little
over four billion.
Furthermore, the interest we pay
on our public debt is only about one
seventh of our tax receipts, while both
England and France pay about one
quarter Of their tax receipts in inter-
est. And that doesn't count the war
debts, either.
Stock Values Increase by Billions.
Editor Gannett's speech was made
some weeks ago. So, of course, he cited
the recession in the stock market,
which he described as the greatest
collapse in the prices Of farm products,
in the value Of securities, that this
country has ever seen in 50 short a
time" OF course, he fixes RESPONSE
bility for the recession on the Roose-
velt administration, and he added 'in
spite of the tremendous powers given
to the President, the fact remains that
we are right back where we were In
1892"
| OF course, we were not then right
back where We were in 80 The pres
ent bulge in the stock market has In
creased the value OF securities, accord
ing to the New York Stock Exchange
report, about $4,000 600, 900. between
the last Of March and last of June. In
March Of this year. when stocks were
tumbling, the total value Of those listed
on the New York Stock Exchange was
still over four billions greater than it
was in March. 1892. So that the value
Of these stocks today is more than IA
billions above March, 1892. Besides
this great gain. national income for
1887 exceeds by 80 billions that Of 1892.
Instead OF being on the verge of
bankruptcy. we are by an immense
margin the most solvent country in
the world. All our bonds are above
par The per cent Treasury bonds,
known as the Mellon Threes, which
were down as low as 80 and fraction
in the good old Hoover days, were up
to 106 in the Roosevelt administra-
ton, and the ~ per cents of l947-52.
! which were as low as az and a fraction