Milford chronicle., 1938-05-06

wrecked on rocks Of loose fisca
policy" Thus at one time or another
he has recognized the danger of his
present plan to the national credit
to our economic system and to the
very Government itself.
/ If those views constituted the
foundation of Mr.. RoOsevelt's eco
nOmic principles then, how much
more deeply and sincerely should
that foundation be secured now. For
since he uttered those words, he has
had the chance to add to his an
nounced principles the experiences
of trial and error. He not only has
seen, but indeed, has directed the
expenditure of approximately forty
billions of dollars in five years. Any
one who is not seized with vindic-
tive stubboTnness. must know that
the smOkeless stacks. the fireless
furnaces, the motionless wheels, the
thirteen million unemployed are but
the fulfillment of the President s
own predictions.
In view of the Presidents failure
to follow his original philosophy
in view of the failure of his spend
ing program for the five preceding
years we must assume that his pres
ent proposal is predicated upon the
contention that this recession was
caused by a reduction in Federal
spending. To such an argument ]
can only answer with the facts.
There has been no reduction in Fed
eral spending for this fiscal year.
have before me. as | speak, the
Daily Treasury Statement for April
1888. From it I note that as of April
Il, the Government has spent So
15.S5O,619 since July 1, 1887. Dur
ing the corresponding period imme-
diately preceding, the expenditures
of the Government were S5,S72,631,-
SIT. In other words. the Federal
Government. as shown by It's Treas
ury Statement, has spent in this MS
cal year S142,713.102 more than IN
the same period of the last hscal
year. May ! add that not only nave
the Federal expenditures thus eX-
ceeded the expenditures OF the cor
responding period of the previous
year but also represent a larger
sum than has been spent in any cor
responding period since Mr.. Roose-
welt took office. ,
OF course, ! know the New Deal
will have some explanation of these
figures. They always do. For five
wears the fiscal affairs OF the Fed
eral Government have been con-
Quoted on a "now-yOu-see-it-now-you
don't" basis. II matters not what
they say. The undisputable fact re-
mains that the Treasury in its Daily
Statement puts the sum total oil ex-
penditures for the period from July
last year to April II this year at
a figure that is greater than Federal
have ever been in peace
times for that corresponding per-
iod. Yet. during that period oi our
greatest expenditures. the country
has gone into an economic tallsplh
the sharpness of which Is unprece-
dented. II has been proven tnat re-
coyery does not keep apace WITH
spending but once again we are
told that we must spend more Ill
order to restore recovery
When will the Administration
learn. as past experiences have pro-
ven. that for every dollar OF abnor-
NAL expenditures on the part OF the
at least three dollars
Of private capital are Withdrawn
from productive channels? Why' De-
rause of fear of government com
petition, fear of imitation. fear oil
crushing taxes, and fear of national
Again the President leaves un-
in his message to Con- |
gress two very important questions
namely. who is going to spend the
S billion dollars he
asks and from where is this stu
pendous sum of money coming
Once again the President has asked |
to give him what amounts ,
10 a blank check to do as he pleases
But | am certain that Congress will
no longer surrender its authority |
Dyer the nations purse strings. | am /
certain that Congress this year Will
carefully earmaTk whatever sums II
sees fit to appropriate. The days OF
blank check appropriations IN this
are over. Congress knows
Inly too we'll that its glorious de-
Teats of the Presidents Supreme
,ourt and Government Reorganiza-
ion Bills-defeats which re-estaD-
ished the independence of our leg
sIative branch of government-will
rave been in vain if it now turns
,ver to the Chief Executive any
iuch sum as 5 billion dollars to do
With as he sees fit. II was a shrewd !
Democrat who told his colleagues
You can't beat a man that has four
,illion dollars to spend as he
'leases."
The question, however, remains:
rho will pay this bill? Ultimately
on will pay 1t. regardless of whe-
her you are a farmer. a factory
yorker, merchant, banker or an
The old New Deal
heory that only the rich pay the
osts of government long has been
xploded along with other New Deal
allacies. As Mr.. Roosevelt said In
9S2 Taxes are paid in the sweat
every man who 1abors." You will
ay for this food of spending, not !
lone in taxes but in the damage
one to our entire economic struc-
Ire by the addition of another |
rushing burden to our already too
lrge national debt.
And when that economic structure I
damaged, you are damaged. Mr..
oosevelt has so stated, and 1 re-
firm Il In time the Federal tax ]