The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-07-07

A s1oo,ooo,ooo,ooo YEAR

The 1871 fiscal year ends with
the government deeply in the red
for the eleventh consecutive year
and the national debt close 20
$4,000, 100000.
Steadily increasing defense costs
are pushing the debt higher each
day. Administration leaders ex-
press the hope that defense produc.
ton, and hence spending, will in
crease faster in the new year. The
major Administration concern wor-
ry seems 10 be the failure OF expen-
ditures TO reach the budget esti-
mates Al Though final figures will
not be available for several days,
1871 spending is expected to APP
proximate Sl2,6O0,OO0,OOO as COM
pared TO the estimated total OF
S13.302,000.000
The Administration blames the
low" figure on strikes and failure
OF management TO expand produc-
ton as rapidly as possible. Gov
eminent leaders are anxious for
expenditures TO reach the budget
estimate because failure to do 30
signifies a lag in defense produc-
ton.
Total expenditures for 1871 were
expected to about equal the 1918
World War figure OF S12,697, 100000.
For the new fiscal yer. the Bud
get Bureau estimates spending at
$4,000, 100000, dependent some
what on whether defense indus
tries can increase their production.
Briefly, the year-end fiscal pic
ture shows receipts $500, 100000,
expenditur IS s12,600,000,000, deficit
100000, 600.
Expert estimates for 1912. based
on passage of the new tax bill be-
fore Congress, includes receipts
Sll,000,000,000. expenditures $22,-
000,000,000. deficit S11,000,OO0,00
Creation OF the nations largest
peacetime army and other defense
costs pushed the national debt to
a record high of about S49.000,000,-
600. By this time next year, the
debt figure is expected'to be about
$4,000, 100000.
Administration leaders hope the
$4,000, 000,0 900 spending estimate
for fiscal 1912 will be too conser, a.
tive. Analysts at the Office of Pro-
duction Management, however, ind
little to support these hopes. OPM
experts say federal spending in the
1912 calendar year may reach
$4,000. 100000, but not much over
$40, 000,000,000 in the fiscal year
ending June 30. 1912.
Defense spending alone next year
will amount to about S15.500,O00,-
600, according to the Budget Blu.
reau. The figure for the 1912 fiscal
year is about $4,000. 00O,0O0-rough-
ly S400,000,000 under bureau est.
mates made six months ago.
Receipts in 1871, largely because
OF record-breaking income tax col.
lections, were about $500 900 600.
well over budget expectations of
S70l2,000,000 Income and excess
profits tax collections for the fiscal
year amounted to nearly s3.500O0O.-
900, a recordbreaking figure caused
by almost a 100 per cent increase
In the number OF individual tax
returns.
National income for the calendar
year 1871 approac' ed S90.0O0.OO0.-
600. According TO Commerce De-
partment estimates. the trend dur
ing the first six months Of 1871 indi.
Gates a total OF ss5,000, O00.00O bu;
continued industrial expansion Is
expected to boost the figure. posi-
bly, as high, some government ex.
perts predict. as 500, 900 100000 by
the end OF 1912.
Ordinarily such a figure would
mean big dividends, heavy stock
sales, high spirits and a general
tone Of what we have in the past
called prosperity. But the tone
now is different. 1t is wartime
necessity. forced production for
waste and Extraordinarily to be
sunk, munitions to destroy, air
planes TO be shot down.
The expenditure seems enorm-
Gus, but If it will save the lives of
American men by preventing our
entrance into the war It is a good
investment. II, however, it merely
leads us into war there are a good
many names more appropriate than
Investment" and more commonly
used, but much less compliment
tary.