The Waterbury Democrat., 1940-01-22
Smoke Screen Hides
Federal Extravaganza
National Defense Held Essential By Credit Association
Executive-Tax Burden Grows Daily

ten in the history Of nations, milf
tary machines have not remained
IDLE. And opposition to war Is wide
spread and thorough. For sucn rea-
sons our people are not willing 10
have us set the pace in rearmament
activity"
Citing the case OF Finland and the
rally of world opinion IN support Ut
Finland's cause, the credit executive
states that ornaments are not the
sole protection of a nation. Nor
are physical matters such as wide
oceans or difficult terrain. A will to
peace, a respect for obligations
these, too are powerful defensive
weapons.
WITNESS Finland. Worldwide
sympathy and support are hers in
her hour Of trial and tribulation.
With only a small population from
which to draw military man-power,
handicapped by sheer inability to
finance costly defense programs,
Finland has commanded the respect
and gained the support OF the great,
peace loving nationsc by her desire
to remain at peace.
And American assistance Is slim
ulated to q large degree by the
memory of her attitude towards the
war debts she owes this country.
Finland met her financial obliga-
lions to us md we, in turn, are evil
dencing our appreciation by our
support of her brave fight against
overbearing opposition.
"Once again capacity and capital
have been found sufficient but
character, as revealed by the pay
ing record, has been revealed as
dominant. Credit executives under
stand this fully for with them char
acter, as revealed by the paying rec
ord, Is daily concern"
Limit on National Debt
Commenting on the recent discus
sions as to possible increase of the
national debt limit by Congress, Mr..
Hermann says that 1.-THE indiffer-
ence that has existed with respect
to debt In the past decade has pass
ed its peak. Our public debt is now
over AZ billion dollars. Our present
debt dimit Is set at As billion dol
lars, limit under the control Of
Congress and one about which 1t Is
we'll to clear misconception.
II have noted on numerous oc-
casions while travelling around the
country, an impression that this As
billion dollar debt limit has been set
at that figure by specific congress
sional action. This is not exactly
true. The limit arises, not from a
specific act of Congress, buf from
the total of individual legislative
enactments which authorize the is
suance of bonds or securities for va
rious purposes. That limit on the
treasury's borrowing ability is sub
ject to change whenever a new bond
authorization Is voted.
During the summer months Of
this year, at the present rate OF ex-
penditures and receipts, we will
reach our debt limit. How will we
resolve this situation?
There are four ways. First, we
can choose further authorizations
of government bonds. Second, we
can decide to curtail our spending
program so that 1t will be balanced
by our total tax income which Is
now at record levels. Third, We can
elect TO levy highe rtaxes and Cnere-
by balance our expenditures. Foudth,
we can initiate currency.
Tax Burdens
whether our growing tax con-
seriousness, our increasing demands
for reduction of government ex-
penditures are potent enough to
bring a halt to our spending pro-
gram remains TO- be seen.
but that this must develop m
time, and before too long, was one
of the few certainties that we car
ried forward from the decade Of the
troublesome thirties.' And that 1t
will develop is evidenced by the UNI
deniable fact that the average work.
ing man and woman cannot be
hoodwinked much longer about the
tax burden as 1t affects them. They
sense the ton that taxes are taking,
whether they pay them directly or
indirectly" he declares.