Evening star., 1938-07-14

welt to joint -
session of Con- '" A""fe"'''
gress in March, 1893, I'VE have been
on the road toward bankruptcy" The
deficits then were small-for all three
years they had totaled less than five
billion dollars. The public debt was
only about $4,000 100000 in 1898.
Now the deficits are running $4,-
100000, 900 a year and the public debt
is approaching $4,000, 900. 900 for the
Federal Government alone, which,
taken together with the State and
city debt Of another $4,000, ,0Oo. 900,
makes the approaching total around
$4,000, 600, ,000-the largest public
debt Of any country in the whole
world.
So far Is the Roosevelt regime is
concerned. 1t believes apparently that
borrowing can 60 on indefinitely. 1t
would not be such disconcerting
picture II the administration had
shown some signs of cutting expenses
when recovery" was supposed to
have come in 1896 and early 1897.
But the expenses were steadily rising
then. too. irrespective Of the improve
ment In receipts.
Cite British Tax In Answer.
- The debt load naturally is felt in
higher and higher prices. The New
Tories" hereabouts usually answer
al controversies about debts with the
cffhand statement that the British
taxpayer has = heavier per-capita tax
than have American taxpayers. But
1t ID significant TO note that the
British people, with twice as large q
per-capita debt Is ours, are paying
only moderately heavier per-capita
taxes. This, says the July number
Of the National City Bank Bulletin,
which has made . special study Of
the subject, 'is evidently due to 4
lower level Of government operating
expenses-exclusivs Of interest-than
IN this country"
What y important In comparison
70 Great Britain or any other country
= not the amount Of taxes, but the
rste ct which the debt and the taxes
~ both climbing. Thus, since 1880,
tho Dritish have increased their debt
only By 81 per cent. where, In the
same period, the United States has
nersased her debt by 63 per cent
. phenomenal rate Of rise In 4 debt
structure.
OtAse Liabilities Exist.
1hh, moreover. does not include
so-called guaranteed obligations In
which the United States Treasury
stands back Of the bonds or notes
and on which there u Q risk of q
certain percentage Of loss. For the
Treasury must make up any losses
to the holders of these securities,
President Roosevelt has referred to
the debt question only as being part
Of . program of . human balance
sheet" 1t u much the same answer
monarchs and executives have given
since the beginning OF time. In q
democracy. debt incurred in one year
does not begin to be felt for many
years thereafter-when the ruler or
executive who was responsible for
the policy is already out Of Office,
Mr.. Roosevelt may glibly speak of
human balance sheets" and talk
sayly Of liberalism" but the cold
dollars and cents situation Of . debt
ridden country, which either has ia
pay back these immense debts or
y consent directly or indirectly to re-
pudiation of debt, does not disappear
through any barrage of words OF
excuses
HIGHER Debt in Prospect.
Mr.. Roosevelt has estimated the
dencit for the coming fiscal year at
around $4,000, 100000, but he has f,g-
ured IN only eight months Of w. p. A
Ihe prospect Is that the deficit will
90 much higher than $4,000, 900. 900
The biggest issue before the country
indeed. IL liberalism" that is, ,liber-
Atty With the taxpayers' money O,
thrift, waste and extravaganza or pru.
dence and thrift. Nowhere on his trir
across the continent has the President
offered the slightest suggestion as to
how the Nation is going to cope with
the enormous debt it now faces. In
the absence Of . concrete program
the conclusion Is inescapable that the
administration is drifting opportunis-
So hcally, and that 1t has no program
for the future except more political
bunkum. perhaps, about so-called "lib-
: erslism."
President Roosevelt is now on the
> &ac1f1c Coast. While there he mipht
Vel hnd time to call on Herbert Hoo
ver at Palo Alto and offer his sincere
apologies for that speech made by Mr.
Roosevelt In March, 1888, when. he
oeeused his predecessor Of plunRina
ehs Nation on the road toward bank.
fupoey" at time when the total debt
. incurred to fight the then existina
oepreasiou xas less than $4,000, 900 :.
900. Now almost that same amount
y bstng spent In . single year Of the
= posedy prosperous years Of thu
abundant life under the administra.
/, tton of The New Tories.
(copyrisht. 1o8s.)