Evening star., 1942-04-25

The latest budget figures an
nounced call for a budget of n bill
lion dollars for the fiscal year begin
ming next July. Out OF this vast
sum about II billions will be spent
for war purposes. Even II one third
is paid by taxes and miscellaneous
leyies, 1t still will leave deficit OF
about So billions.
This means that In one year the
Government will have a deficit more
than twice as large as the admins
tration's deficit during all the de-
preston years.
Pace May BE Impossible.
II the II billions are spent in the
coming fiscal year for war, 1t will
mean that II out OF a possible lit
billions of national income viii go
for war, leaving about 46 billion for
the normal civilian segment OF ma
tinnal income.
The big question is whether Amer
lea can spend that much in so short
time. The President at his press
conference yesterday hinted at a
larger production program. This
seems incredible. but he rightly
pointed out thai every program
projected thus far has seemed fan
tastic in size and yet we are be-
ginning TO meet the goals.
II Is desirable that Americas
fiscal plans be told to. the world
Germany and Japan, who have to
squeeze their labor to the last ounce
OF energy to carry on their war pro-
gram, can easily infer from the size
OF Americas expenditures that the
mightiest armament program ever
dreamed Of by the most extreme
military planner Of the past is about
to be exceeded many times by the
United States.
Tt Is true the sums are SO large
that little thought has been given to
how they will ever be paid. But the
financial resources of the American
people are immense and the Gums
being spent viii circulate within the
United States In kind of revolving
fund which win enable the Govern
ment TO recapture by taxes q SUBJ.
stantial part of the spending and
to borrow the rest.
Even though taxes are high. q
tremendous amount will flow into
the national stream and viii be alb
sorbed In the form OF increased pay
envelopes by millions of people.
Here will come the Treasury's effort
to obtain the cooperation of the
citizens In buying War bonds. No
plan of forced savings is thus far
contemplated. but there will be a
drive to get voluntary contributions.
The American people viii, there
fore. lend their Government the
money with which to carry on the
war and 1t may not be necessary to
make the serious and drastic cuts in
real wages which have been forced
on continental countries.
II. on the other hand, the war
time controls against inflationary
prices and the plans for rationing
certain necessary items used in the
citizens daily life do not meet the
situation. there will have to be
further restrictions.
Depends on Length of War.
The character of the restrictions
and the extent to which the war
costs will mount will depend on how
long the war lasts The admins
tretion's intention apparently is to
spend without regard TO cost at the
earliest possible moment and bring
the armament program into action
as soon as human ingenuity can
produce that result. This means
that II the war can be shortened by
concentrated drive in 1912 and
le4s, much of the money may never
be spent and ii may be possible sub
sequently for the American people
10 spread The burden OF repayment
over long period of time.
The size of a national debt is re-
lated to the resources of the. people
and the national wealth. and un-
ouestionably the facilities being
provided by the huge Government
funds will add considerably TO the
total wealth and to our wealth.
producing plants and instrumental
ties.
lRAnrn.dtrt ian Rights RasnrraA