The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-01-18
ECONOMIC HIGHLIGHTs

was WluSly HST6tOSO Ill Luc ucdullIlcS
as move for economy, comparatively
speaking, in government. Practically
every item Of expense was pared in
his estimates. Single major exception
was national defense and on this
there is almost unanimous agreement
that we must spend more, though
there is considerable disagreement
among the expert and the not-so-ex-
pert as to just how the money should
be spent.
Despite the headlines, however, it
will come as tremendous surprise to
the more hard-headed annalists if ex-
|penses are materially cut in any di-
rection this year. And they will not
be at all surprised if the final budget
involves the expenditure Of as much
|or more than has been spent in any
year of New Deal history. That may
seem contrary to the general Impress
ion of Mr.. Roosevelt's message-but
there are sound reasons for it.
First, the Presidents budget makes
no mention Of the money the Treasury
must appropriate for old age pension
payments, which start February l..
These payments, according to esti-
mates, will amount to better than half
a billion dollars during the coming
fiscal year. And no provision is made
for farm benefit payments-instead, a
major cut in the budget was in spend
ing for agriculture. 1t is of course
possible that Congress will follow the
Presidents budget in this regard, but
if it does miracle will have occurred.
Secretary Wallace thinks that about
$3.50, 100000 should be paid in farm
benefits. And Congress at large, so
far as anyone can see now, will back
him up-don't forget that this is a
general election year and Congress-
men of both parties, including some
of those who talk the loudest about
economy, are breaking their necks
seeking to win the great farm belt
vote.
Second, Washington observers think
the President has played very clever
trick on Congress. He has simply
dumped the budget problem in the
lawmakers laps. He has offered them
"a budget which, though it may be
economically wise, is full Of political
dynamite. Congressman are only hu-
man. AS the records abundantly
prove, they are all for economy when
it hits some district other than their
own, and all for spending when their
constituents are to be the benefci-
aries. The exceptions to this rule are
few and far between, though they do
Iexist. So the probability is that Con-
|gress will up the, proposed expendi-
lures in many Il Tot most of the di-
visions.
So far as the prospect of new taxes
lis concerned, there seems to be more
smoke than fire. Again, the fact that
this is an election year makes Con-
|gressmen of both parties exceedingly
reluctant to pile more burdens on the
taxpayers. They think it politically
safer, according to those who make a
business of watching Washington af-
fairs, to let the deficit rise. In other
words, new taxes are possible, but not
probable. If new taxes are imposed,
they will probably be of character
which will directly affect compara-
lively few people.
To return to the budget message,
Paul Mallon summed it up aptly when
he wrote: "On it's smiling face it ap-
pears to be stern economizing ven-
ture. Actually it contemplates the
largest spending program in New
Deal history The fiscal problem is
up to Congress now.
X 4 X
The war, the authorities say, will
remain fairly quiet until spring-no
one is expected to start a major Of
fensive while the bad weather holds.
And in the spring, it is forecast in
some quarters, Hitler will make his
bid for victory. Time works with the
Allies, and against the Reich. The
military men mainly think that Hitler
must win this year, or lose.
The Russo-Finnish controversy still
holds the spotlight. To quote the
military authorities once more, it is
felt that the Red Army has been bad
but not as bad as it has appeared
to most laymen. The Arctic weather
has helped the Firms, who know the
terrain and are masters of guerrilla
tactics. And the Russian troops, at
the start at least, comprised third
class, not first class divisions. Stain
apparently woefully underestimated
the spirit of Russia's little neighbor.
There IS considerable speculation
as to what will happen once the
Finnish business is settled. A Russian
drive against India would not startle
the experts. And if that should hap
pen, England would be in a tough
spot. 1t would mean that she must
divert great quantities of troops,
equipment and supplies from the Con-
tinent, and thus weaken her support
of France on the Western front. Eng
land would have to give every effort
to beating the Soviet-a successful
Russian drive to the east would mean
the shattering of the great empires
lifeline.