Evening star., 1939-01-24

child. In other worcs, all OF the |
people are borrowing through their
public bodies from all Of the people. |
The whole problem of internal
debt, public and private, must be
considered In relationship to the
total real wealth of the Nation. Our
total debts are great or small, de-
pending upon total national income.
The British public debt a century
ago was equal to $4,000 900 900. At
the present time 1t is SAC, 900 900 900,
or 10 times greater. Their debt has
grown, but the income OF the British
people has grown much faster than
the debt. While doubtless it would
be better for them If they had less
public debt, it cannot be said that
the debt has either bankrupted or
impoverished the British nation,
because their standard Of living has
increased during this entire period.
Now make no mistake, I am not
advocating ever-increasing debt, but
I am merely pointing out that we
should see the problem of debt in
its true perspective. I do not think
that alarmist talk about it is calcu-
lated to help recovery or to induce
private capital to go to work.
British Taxes Higher.
As to the argument that the Brit
ish achieved recovery by balancing
their budget, it would be we'll for
those who cite this to remember
that while our national income was
falling so per cent, their government
never permitted theirs to fall more
than 10 per cent, and that British
rates of taxation, if applied to the
United States, would very likely bal
ance our budget. Their balanced
budget is not due to the fact that
they spend proportionately less than
we do, but because their income and
inheritance taxes are relatively
much higher.
Individuals and corporations may
become bankrupt, but no nation,
having the human and material re-
sources of the United States, need
impoverish itself by borrowing from
itself. The only way that we can
impoverish ourselves is by failing to
utilize our idle man power, re-
sources, productive facilities and
money in the production of real
wealth.
I have been talking so far about
the economic aspects of the problem
of Government fiscal policy. In
conclusion, l would like to say a
word about the human or funda-
mental aspect of this problem.
We did not hesitate to have the
Government borrow billions of dol
lars to protect this country against
foreign enemy during the World
War. In one year alone we created a
deficit of $4,000, 900 900, as much as
the entire cash deficit of the Gov
ernment during the past five years
We are again proposing to spend
billions for preparedness. Yet at the
same time, many are quibbling about
$50 million dollars necessary to help
protect our human resources.
The same Government credit that
can be used to protect human lives
in time of war against the encroach-
ment of foreign enemy can also
be used in times of peace tc
protect these human lives agains,
decentralization and despair. There
is no more limitation upon a Gov
ernments S ability to fight a depres-
sion than there is to fight a war
Both depend upon our human ano
material resources, brains and cour-
age-and upon nothing else.
The danger for the future OF
democracy comes from within a.
we'll as from without. The lead
ership Of this country. both ir
Government and in business, must
realize that if the American liberia
tradition is to be preserved, then
for the millions of our citizens, the
right to work must also be preserved