Evening star., 1942-01-02
Outlay Of Il Billion
By u. ). in December
Breaks All Records
Sum Is Half Billion
Above Peck Spending
OF World War
By the Associated Press,

BY the Associated Press.
The Treasury reported today 1t
spent in December the first month
Of the war, more than in any other
month in United States history.
December expenditures aggregat-
ed s2.557, ,103354, including sl,846.-
555, 5,31l for direct defense activities.
This exceeded by half billion dol
lars the peak spending of the World
War, which was 50 ,O6l 900 900 in De-
cember. 1918, the month after the
ArmiStice.
The December figures were an
nounced as the new war budget,
calling for the greatest spending ef-
fort in world annals, went to the
printers.
The total of direct defense costs
in December reflected the sharpest
step-up since the beginning of the
defense program early in 1910. The
December total exceeded November
defense spending by s4O0, 900, 900 and
was more than three times the size
OF defense spending last January.
Other Record Figures.
Also, the Treasury statement of
its finances on December 81 showed
results of the first half of the
current fiscal year. In those six
months, the Treasury spent SILL
$50 ,859 1863, including S8,214 1856 1867
Tor defense, took in revenues of $4,-
165,9l0,978, and had a deficit of
81 1856 ,948 1856. These were all records
for six-months period.
The war brought still another
record. with the sale of S536 .285 ,664
OF Defense savings bonds in Decem-
Der. This was more than double
monthly sales figures of other recent
months, and eclipsed the monthly
record of $349,818 900 last May when
the defense savings program began.
President Roosevelt and Budget
Director Harold D. Smith. after
working through the New Year holi-
day, sent all but a few pages of the
budget to be set up in type. Those
final pages were practically done,
too, but were held for possible last
minute changes.
Contents of the budget-a book of
about 1000 pages of small type
were still secret and guarded to pre-
vent premature disclosure before
presentation to Congress some day
next week.
Dwarfs Last War Effort.
But the President already has
hinted publicly at war costs of $50
00Q 100000 for the next fiscal year
(the IL months beginning July /,
l942), indicating a total Federal
budget of roughly SIS, 1000 900 900
after allowing for military ac-
tivities.
That will approximately double
the spending rate of the current fis-
cal year, already the most expensive
in United States history, and dwarf
the S18,522 100000 spent in the most
costly year of the World War.
1t also will surpass the estimated
$50 900 100000 a year expenditures
for war of Germany and the $21 ,OO0,-
900 900 year of the British Empire:
These comparisons, however, officials
warned. must be discounted because
German and British money buy
more goods per dollar equivalent in
their own countries and because of
numerous other technical and finan-
cial differences.
Spending 50 to 81 Taken In.
Stacked against revenues, the pro-
posed spending plans call for more
than So ct expenditures for every 81
of taxes. The Treasury has esti-
mated that existing taxes will raise
about $16,000,00O, 900 in the coming
fiscal year, but is seeking huge new
taxes which may alter the fiscal out
look later.
The budget may also mean a
500, ,0O0, 900, 900 national debt in the
next fiscal year. The Treasury's OBJ
legations now are $57, $50 ,000, 900, and
are expected to come close to the ex-
isting $65 900, ,000, 900 statutory debt
limit In the next six months. Even
with new taxes, the deficit in the
next year may be as much as
$35, 600, 900 900, which would bring
the debt to the 500 ,000, ,00O, 900 level
"a mark which distinguished bank
ers at one time thought impossible.