The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1939-01-05
Bruckart's Washington Digest
Unusual Coincidence Attends
Visit of Governor of Nebraska
Executive of State Without Debt Appears at Moment
Treasury Announce Huge Federal Debt; Spend Less
When Income Drops, Cornhusker Formula.
BY WILLIAM BRUCKART
WNU Service, National Press Bldg, Washington d. c.

WASHINGTON.-Gov. r. L. Coch-
ran of Nebraska visited Washington
recently. Governors of states get
around to Washington visits every
now and then, but in the case OF
Governor Cochran's visit, there was
a very unusual coincidence. On the
day of his arrival, the treasury de-
partment happened to make public
its routine monthly statement of the
national debt and expenditures. It
was late in December, so the treas
ury statement served to mark half
of the federal governments fiscal
year.
There was, of course, nothing
spectacular about the fact that the
treasury issued a debt statement.
The government has lots of debt.
But it was spectacular, even sensa-
tional, that the treasury statement
of that day should reveal new high
record for the national debt on the
day of arrival of one of the state
governors, the chief executive of a
state that has no state debt. Not a
penny does the state of Nebraska
owe. 1t bound itself by it's constitu-
ton never to accumulate a state
debt and, further, it restricted its
counties and cities in the amount of
debt they can create.
Some may disagree with me but
] was very much impressed with
the facts in the case of these two
political Jurisdictions. Our national
government now is in debt to the
staggering amount of 500, 500, 600, 900
in direct obligations, and if one adds
the outstanding bonds and notes of
agencies and government-owned
corporations which amount to about
S., ZOO, 100000, your Uncle Samuel
some way, some how, must pay
nearly $45, 0OO, 100000. And this at
time when one of its states, Ne
braska, does not owe a thin dime!
Governor Explains HoID
His State Kept Out of Debt
I had quite a conversation with
Governor Cochran who was elected
for the third successive term only
last MISUNDERSTANDING one of two
Democratic governors in northern
states to be re-elected-about how
the state had come through the de-
preston with taxes low and no state
debt.
! reminded him that most every
other state had added to its debt;
that taxes were higher and new
taxes were added in every direc-
ton, and yet Nebraska, with many
of the same problems, had kept it's
record clear. So, exactly what is
the answer?
"The answer is very simple" the
governor replied. "It is so simple
that there is hardly news story in
it.
''It has been the policy of my
administration to cut the cloth to
fit-cut it to what we could pay for.
If our state income was due to be
less, ] insisted that we spend less.
After all, I guess that is your an
swer-spend less when you have less
income"
How about those taxes?
"Well, it's much the same story"
Mr.. Cochran went on. ''We feel
that agriculture and manufacturing,
retailing and service, every kind of
industry, has right to survive. I
believe those engaged in it have a
right to a reasonable profit, a
reward for their work and efficiency
in that work. Every time a new tax
is added it comes out of the whole
people. This statement that taxes
can be shifted around is all the
bunk. The whole people is going
to pay and it is unfair for a state
government to take everything. The
state exists for the people; not the
people for state"