Evening star., 1940-03-05

| Senator Taft:
have read with interest the state
ments Of New Deal leaders as to their
accomplishments during the past
seven years. I listened to Senator
Barkley on the radio last night and
in the Senate today, and to Senator
Schwellenbach this evening. Their
contention seems to be that we are
better off as a people than we were
in 1888 by reason of New Deal poll
cleS. I have no desire to enter into
a partisan discussion. I do not
question the good faith of the New
Dealers in the measures which they
have taken: nor do I question their
immense energy in pushing forward
with their experiments. I only ask
you who are listening to this dis
cussion to consider the condition of
the American people today, and your
own individual position in the light
OF the New Deal claims. Are you
any better off than you were seven
or ten years ago? If you are, can
you trace any improvement to the
New Deal?
There is plenty of evidence that
most people are worse off than they
were 10 years ago rather than better
off. National income in 1899, that
is, the income of all the people put
together, was only $4,000, 600, 900,
whereas for two or three years prior
to 1929 it got up to $4,000, 600, 900.
There were 10 million fewer people
then, so that the average income per
person is 20 per cent less today than
it was then. That means a much
lower standard of living for every
body. With SO many more people,
we ought to have national income
of $50, 600 ,000,0 900 instead of $68,O0O,-
000, 900. If we had, we would employ
the million unemployed.
Farm Prices Generally Decline.
Farm prices, which make the
farmers income standard, were in
general lower in August, 1899, than
they were in August, 1888, after the
first boom, and before any of the
New Deal farm control measures
began.
At least 9 million people are unem-
ployed. I notice that Senator Bark
ley said something about there being
from 7 to 9 million unemployed.
but the American Federation Of
Labor figures for January show
over 10,300,0O0. Mr.. Nathan of the
Department of Commerce estimated
10,900,000 unemployed in January.
The latest figure available from the
National Industrial Conference
Board, which was for December,
indicated over 100000 unemployed,
and there has been a big increase
since then. Certainly these unem-
ployed millions are not better off
than when they were at work in
1928.
Then there isn't any doubt that
the national debt has increased
$21 900 ,000, 900 in these seven years.
Twenty-one billion dollars is lot Of
money. 1t means that every one Of
80 million families on an average
will have to pay interest and princi-
pal on a debt of $700 before we get
back to the point where the New
Deal started.
Government Costs Increase.
Furthermore, the New Deal has
certainly increased the cost of Gov
eminent, which all the people have
to pay out of their earnings. For
seven years before the New Deal,
ending in 1882, that cost was So, ,944,-
100000 a year. For the last seven
years it has averaged $7,570, ,000, 900,
and today it is up to $500, ,000, 900,
or more than twice what it was
before. No wonder your taxes are
high; no wonder you have to pay
more for bread and other food and
clothing because of all the taxes
that are imposed on these necessities
as they come to you from the pro-
ducer.
President Roosevelt the other day
tried to belittle the size of the debt.
According to the Associated Press
and the New York Times the next
morning, he made the statement
that the total owed by the Govern
ment was no greater than it was in
1882, because local government debt
and State debt had gone down the
full extent that Federal debt had
gone up. OF course, on this question
Mr.. Roosevelt just made mistake.
Local and State government debt
decreased less than a 81 900, 900 900,
and Federal debt has gone up $21,-
600 900 900, 50 the net increase in the
public debt is at least $40 900, ,000, 600.
That was quite good-sized mistake.
Then the President said that,
after all, the increase in Govern
ment debt did not make much
difference, because private debt had
gone down. OF course nobody knows
exactly what private debt is because
some people count one thing and
some people count another. For
instance, some people say that all
the deposits in the banks are debts
owed by the banks, as in legal
theory they are. There has been
some decrease in private debt, but
it is hard to see how we have gained
thereby. In fact, we would be better
off if the 5000. 100000 of excess
reserves in the banks were loaned
out to people to use to put other
people to work. The big difference
between public debt and private
debt is that private business usually
can't borrow money unless it can
show that it can earn a return on
the money borrowed, and in time
pay off the debt. That doesn't cost
you or me anything, and the only
time 1t becomes dangerous is when
the banks and others get reckless
and make bad loans.
Taxes Raise Money.
But Government debt almost
never pays for itself. Almost the
only way the Government can pay
interest and principal on its debt is
to tax all of us to raise the money
for that purpose. If Government
debt gets too heavy, there is tre-
mendous pressure for the Govern
ment to print more paper money
with which to pay its debts. Once