The Waterbury Democrat., 1944-09-06

SlOAl kANGH BklhN the national debt would therefore be reduced by that amount so that the cost of the war would be cut a third.
 But the picture isn't nearly that rosy.
 Bureau of the Budget estimates that the cost of the war, by June, 1945, will be S289 BOO, 100000 This is just the American taxpayers and bond-buyers' share. It divides roughly as 30 per cent pay and sub- sistence, 10 per cent construction and 60 per cent munitions, including ships. The pay and subsistence are not recoverable, the munitions will have heen largely shot away or will be of future use to only the armed services The salvageable part that can be resold as surplus property won't bring 20 cents on the dollar, and If the government gets $l5, ,000,- 100000 net from these sales it can call itself lucky.
 HOW CONGRESS
 WOULD SPEND IT
 But even mere IS billion bucks isn't to be sneezed at, though It's only Q fraction of the total national debt, So the question is, do you want to earmark this estimated $i5,000,0 10000 receipts from the sale of surplus property for reducing the national debt2 That proposal ap. parently made sense to Q majority of the congressman, but U. s. Treasury and Bureau of the Budget officials say It's no good, for reasons which will be gone Into presently.
 The average guy not verSed in the intricacies of big money ook-keep- ing will probably say that Congress has the right idea. Sales of surplus property represent reduction of capital assets, To take money from such sales, put 1t in with general re- ceipts and spend 1t as operating eX- penses would certainly be bad bus mess for any individual or any corp oration, particularly if the individu- al or corporation had any debts that might be paid off,
 Furthermore, the psychology of the the thing looks good. After the war, the heat will be on to reduce government expenses and reduce taxes to the greatest extent possible Keeping taxes high to appropriate money for the reduction of debt won't be popular. The smart politi. cal thing. since the debt has to be reduced some time, Is to take all the easy money you can get and apply It's against that awful deficit, The mere interest on that indebtedness will amount to $3,7b0, 100000 this year, so any reduction would mean some saving In interest,
 TWo.PoCKET SPENDING
 To all such arguments, however the executive ends of the govern. ment turn up their noses and turn down their thumbs. The only time the government can reduce it's debt they say, is when receipts are greater than expenditures. That condition has not existed during the war, so the debt has gone up. But to take any special postwar re- ceiptS and earmark them for debt retirement simply means that Con- gresS will have to appropriate that much more money and levy that much more In taxes to run the gov- ernment, and that the national ex- penditures will therefore be in- creased by the same amount that is put into debt retirement. It Is like the old trick of spending your money out of two pockets instead oi one.
 Now cooking in the Treasury Is q big plan for post-war debt retire. fnent, Until that Is presented to Congress, says Assistant Secretary Daniel W. Bell, the Treasury is op- posing any other legislation on debt retirement.