Evening star., 1939-01-05

penditures of the Government into
ordinary expenditures" and tex
traordinary expenditures" Under
the first are listed expenditures for
the regular departments of the
Government-national defense, vet
erans' pensions, the agricultural ad-
justment program, social security,
etc. Under the extraordinary ex-
penditures are listed the new ma
tional defense program, public works
and unemployment relief. This
breakdown in expenditures shows
the total estimate of ordinary ex-
penditures for the fiscal year 1910 at
IS ,537 900 900, and the total estimate
of extraordinary expenditures at
$3,458 900, 900.
Would Add improvements.
Discussing extraordinary expendi-
lures, the President stresses the fact
that extraordinary capital outlays
increase the wealth of the Nation.
He insists that because of this fact
there should be adopted a form of
budget which would conform more
nearly to the practice followed in
commercial business" He recon-
mended in his last budget message
change in the method of financing
the requirements of Commodity
Credit Corp, calling for an annual
appraisal Of the assets and liabilities
OF the corporation, and contemplat-
Ing that any surplus from operations
or any impairment of capital result
Ing from losses be reflected as re-
ceipts or expenditures in the annual
budget. This recommendation Con-
gress adopted. The President in his
message today recommends the ex-
tension Of this principle to other
governmental corporations and cred
1t agencies, such as the Farm Credit
Administration and the Electric
Home and Farm Authority.
The President says also that pub
lie projects of a self -liquidating
character represent another class of
expenditures appearing IN the an
nual budget of current outlays to
which this principle might also be
applied.
In support of this recommended
ton, the President says that under
our policy of expanding capital out
lays to compensate for variation in
private capital expenditures, and of
making loans to meet emergency
needs of our people" the great part
of the deficit and the larger part
Of the increase in the public debt
have gone for permanent additions
to our national wealth." He at
taches table which gives COM
parison of Federal outlays for dura-
able improvements and recoverable
loans and investments with the net
deficit and increase in gross public
debt from July l, 1890, to June 80,
1910.
This table shows that the total
outlay for the period. for durable
improvements. ETC., We're $685.
100000. To this total is added the
$1,000 100000 stabilization fund,
making total offset to the in
creased public debt of $18, ,431 900 900.
The estimates of this character of
Federal outlay for the fiscal year
1899 are s2,487 900 900, and for the
fiscal year 1910, $1,940, 100000.
Would Promote Theory.
Let us all fix that fact Chat a
large part of the increased public
debt has gone for permanent addi-
tions to our national wealth. in our
minds says the President, 80 that
there shall be no doubt about it,
and SO that we may have a clear
and intelligent idea of what we
have been doing.
I'VE have not been throwing the
taxpayers money out of the win
dow or into the sea. We have been
buying real values with it. Let me
repeat: The greater part of the
budgetary deficits that have been
incurred have gone for permanent,
tangible additions to our national
wealth. The balance has been an
investment In the conservation Of
our human resources, and I do not
regard penny Of 1t as wasted"
The President in his budget mes
sage today, as in his annual mes
sage yesterday, takes a firm stand
for continuation of Government
investing" which is his new phrase
for Government spending. He says
that "a year ago recommended an
increase in work relief, public works,
and other related expenditures, to
check the downward spiral Of busi-
ness. The program undertaken at
that time has contributed materially,
I believe, to the existing upward
movement of business and employ
ment, and I feel that the business
men and farmers and workers OF
the country, no less than the un-
employed, are entitled to an assur-
ance that this program will not be
curtailed arbitrarily or violently"
The President insists that any de-
cision to decrease those expenditures
now that recovery has just started
would constitute a new policy,
which ought not to be adopted with
out full understanding Of what may
be the result"
Possibility Of Increases Seen.
Suggestion is made by the Presi-
dent in his message that the Govern
ment expenditures may be increased
beyond the estimates submitted If
plans for spreading the coverage of,
and for revising the benefits under,
the Social Security Act, and for i'm
proving public health facilities are
carried into effect.
These plans present major ques-
tons of future national policy and
directly affect the budget" he says.
It u expected that the President viii