Evening star., 1939-07-28
World Spending
70 Billions a Year
In Arms Race
Increase Estimated
As FourfoId Since Nozis
Set Pace in 1888
BY the Associated Press.

By the Associated Press
The cost of the worlds feverish
efforts to reinforce armaments may
reach new peak of $40, 600, 900 900
this year, figures from Government
and other sources indicated today.
On the eve of the World War, in
1914, the seven largest powers were
spending annually only S2,400 ,000,-
900 for arms
Mounting defense expenditures by
England and France largely ac-
count for an indicated $4,000, 900 900
boost in arms outlay this year by
the chief participants in the spend
ing race.
The $40 1000 900 900 cannon boom, "
felt by industry and raw material
suppliers around the globe, exceeds
by more than $4,000, 100000 the
total spent by the United States
under War and Navy Department
headings in the fiscal years 1918
and 1919, covering the American
war spending period.
Future Mortgaged to Pay.
1t is only $4,000 900 900 short of the
the total capitalization of United
States railroads. The estimated
United States national income this
year would cover the current world S
arms spending pace for only little
more than three years. Much OF
the world arms cost, however, is
being paid for by borrowing-mort-
gaging future income.
Uncle Sans appropria tions for de-
fense have been mounting, but &C
tual outlays have been slower on the
rise because of the time it takes to
get Navy, air equipment and other
long-range programs going.
The world arms bill, it was figured,
has risen at least fourfold since Nazi
Germany started setting new pace
in 1888.
These generalities are accepted in
official Washington, but the exact
cost in terms of dollars and cents
cannot be calculated and probably
never will be.
SlOuuCu oCSiCt cySSSAhos
Secrecy, varying and artificial cur
rencies, barter trade, unorthodox
bookkeeping and failure to publish
budgets stand in the way of accu-
rate computation, along with other
difficulties.
Secretary Morgenthau, neverthe-
less, had sufficient information to
be able to report to Congress that
Great Britain was spending almost
so per cent of its national budget for
arms.
France, he said, was devoting al
most 40 per cent to the same pur-
pose, Italy so per cent, Germany
probably go per cent, Japan over 10
per cent. Soviet Russia, he said, had
been reported to have authorized a
so per cent increase in outlays for
arms.
BY contrast he noted that the rec
ord peacetime arms budget of the
United States represented only about
IL per cent of contemplated expendi-
lures.
Mr.. Morgenthau's figures were for
the twelvemonth closing June 80.
Since then British and American
expenditures have mounted to new
high levels and there Is reason to
believe other governments have fol-
lowed suit.
Use 1888 Data for Basis.
The $4,000 100000 bill for all
countries in the 1889 calendar year
is based on the conclusion of the
Foreign Policy Association that in
1888 the 60 leading governments ex-
pended some $4,000, 100000, and on
subsequent increases.
The most authoritative official
and semi-of1cial sources, stressing
the figures represented only round
figure educated guesses," produced
these estimated actual outlays for
the principal nations for the 1888
and 1889 calendar years:
1899 1898