The Waterbury Democrat., 1938-06-24

lOl Clllo year WILL UC OVCI O DlllOl1 dollars and it appears that the def icit for the next fiscal year will be over three billions. This means that the government is running on debt and debt by the billions. It also means very heavy taxation, and if taxation fails, it means in flation and repudiation. I have at all times believed that imitation would bring on such collapse as would be too severe for the people to endure and that it might have the same consequences here that it had in other nations-the over- throw of our order.
 As I see it, it is now impossible for the government to balance its budget. I put the emphasis on the word impossible. We have lifted the tax rates on incomes as high as we think we can hope to go. To make them higher would be to get less money. We are about to re- duce exemptions and impose the tax on small incomes. This would not bring us over two or three hum dred million dollars a year. There are those who speak of a general sales tax, but general sales tax at a high rate will not bring us over five hundred million dollars year. Just assume that we might add by such extreme measures eight hundred million dollars to the federal revenue year. We would still be running short of a balanced budget by over a billion dollars a year in 1938-39.
 A man may go into debt one or two years, but if he continues to run on borrowed money, increasing the debt year by year, we know he will go into bankruptcy and ruin. This is just as true of the Federal government as it is of an individ- ual. President roosevelt has warned us in words as follows:
 From the economy message of March 10, 1883:
 For three long years the federal government has been on the road toward bankruptcy Too often in recent history liberal govern ments have been wrecked on rocks of loose fiscal policy. We must avoid this danger"
 Right now in addition to billion dollars for the Army and Navy, we are about to be called upon for more than a billion to enlarge the Navy. I also understand that we are shortly going to be called upon to lend billion and half to the states and their political sub-divi- sions. It is also understood that our relief bill will go up rather than down and probably will exceed two billion dollars for the coming year. Here are prospects for decidedly rising expenditures with no real prospects of rising federal income. It means greater state of unbal- anced budget instead of less.
 am submitting these facts in my letter in order to inform our people. It is my candid opinion that, while the voting away of borrowed money appears to be quite benevolent and is very easy to do, it is the very worst thing I could do for our people. I really think it threatens them with ruin. So far from being merciful and generous, it is unkind and cruel.
 I am willing to vote for the nec- essary expense of the government and necessary relief. I am willing to go as far as we may prudently go, but I am unwilling to vote away money when I know there is no hope to get the revenue with which to pay it back, when I know it im- poses taxes beyond endurance and when I have such substantial grounds for believing that it means the same sort of imitation and des- truction of values that has invar- iably brought on rum in every na- tion and in every age in which it has been resorted to. We are not different from others. The same follies perpetrated here will have the same consequences that they have had elsewhere.
 JOSIAH w. BAILEY,
 rIritol C%ofac Gov,ota