The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-09-06
People Entitled to Know
acts in Public Finances

lier competitors would 1lnally eat
II UP. No sane business man will
call productive or a valuable and
necessary addition 10 his plant
SPENDING, that is an EXPENSE.
Says Coyle: when the federal
government borrows a billion dol
lars and buys a billion dollars
worth of valuable assets, 1t is no
more unbalancing its budget than
is a corporation that borrows a
million dollars and uses the money
to buy a million dollars worth of
property. The bookkeeping meth
DDS of the treasury should make
this fact clear. Then we could be-
gin to see what we are about" In
this connection the Washington
state budget deserves severe criti-
cism and no kind of praise. Besides,
there are passages therein that no
state legislator could possibly I'M
derstand. yea, doubt even if many
expert accountants could. At times
II seems deliberately to becloud the
subject. There is no earthly excuse
for this defect. Please do not tell
me that accounting and financial
facts cannot be presented so that a
taxpayer of normal intelligence can
understand them. 1t Is the fault
of the budgeteer, not Of the legis-
lator or the taxpayer.
Right TO Know
We have a right to know whether
capital has been invested wisely.
1t is frequently difficult even with
the best methods to present facts
accurately. But 1t can be done,
We shall always have to watch
what kind of investment should
be credited TO the capital account
We shall have to keep apart self
liquidating property and ordinary
property to be paid for out OF
general taxes IL the balance sheet
is to be accepted as valid by the
public. The standard will be
What definite capital value have
our expenditures They then viii
be listed somewhat like this:
At the head of the list will come
self-liquidating paper, such as mu'
nicipal bonds and private notes
and mortgages in proportion to the
probable repayment. Next comes
self-liquidating property owned b.
the federal government, such a
certain national forest areas, witt
proper allowances for increase ant
decrease in value. Third will b
the necessary physical plant 70
the efficient carrying on Of publi
business. such as post office, whicl
actually saves in rental costs, ais
with proper allowance for depre
' citation. Last Is the long list o
intangibles. including soil consery
alton. aids to navigation. education
public health. scientific research
all of undoubted value but no
clearly measurable In dollars.
y There is no doubt that much dis
! cussion will be had as TO what item
, should be shown in the investmen
. columns. Thus. in my mind. arm
!. and navy permanent investment
should be treated as any other Ions
life assets. TO be charged off fror
year to year as quickly as possibl'
but over a conservatively reasor
able span of life.
There will be great deal of tim
spent TO start our national inveI
: tory. Much Of 1t may already
: properly recorded, some must
= found out. again some must
left out. But a start should
h made. Then will no doubt wants
! many Of our fears. then we shou
be able 10 use our taxation r
sources for so much other effo
which is now neglected because W
like the state of Washington in i
last budget. consider as so muC
office expense even when II pu
chased As or more millions Wort
Of long life assets. No wonder v
are ji.tery about our future. "
need both an accounting dictati
and we need to look into some vel
sirnnle but accurate vocabularle
A collateral point may be me