Detroit evening times., 1945-09-07
Paul
MALLON
Behind
The News

| - ~ -
The News
AASHINGTON. Sept -6-Peo-
W pie do not have the slight.
est idea Of what has happened
10 this country fscally during
this war, although the key to it
is only half-hidden in new fig
ures Of Budget Director Harold
Smith,
In the last World War our
spending was a drop in the
bucket. or sack. we now hold.
In 1919 Fiscal year, we reached
war expenditures of SlS,oO0,-
100000. That war really only
lasted two years for us as TAR
as expenditures were required.
In this war we have run In five
fiscal years of preparation and
fighting from So, ,700,000,000 up
TO above Sl00,100,000,000 actu-
ally spent last year
Mr.. Truman has figured the
cost of this war at S2S5, ,OOO,-
100000 1t might be figured
around $685., 900, 100000.
NOV we are up TO what seems
~ likely 10 be full peace
year budget beginning next
July i of around S25,000,000,-
O0O which is more than two
and a half times what the
Roosevelt spenders. actually
spent in their palmiest year.
The Roosevelt expenditures
ran straight on up-depressions
or no depreSSions from S5,000.-
100000 in 1888 CfiscaD to ST.
600, 100000 in 1884 and 1895;
S8, ,O00 100000 in 1886 and 1897;
back 10 $7,000,000,000 in 1888;
and up to $4,000, 900, 900 in 1886
and 1910.
Today we find ourselves on n
government spen ing plane
CneXt fiscal year, $50 per cent
higher.
Taxation has sprouted faster
and loftier. We paid the fed
eral government S2.000000,000
in 1888 and S45, 600, ,o0O,000 last
year-more than % times as
much.
The federal debt Of SD ,000,-
100000 in 1888 (which scared
every one when Mr.. Roosevelt
doubled il in six years. is now
above S265, ,000,000,000 and will
60 to S300,000,0O0,000 by the
next fiscal year. The debt is up
Is times, or 1900 per cent since
1888.
Think of it carefully and you
will see where we are-expenses
up 1000 per cent, taxes up
1900 per cent, and debt up l 500
per cent in u years.
THIS is the next postwar
Il world in which we must live
and plan our way. 1t is a fiscal
strathosphere. This is, not un-
naturally, dizzy height at
which we find ourselves, en-
tirely different in all considera-
tlOnS from any fiscal surround
ingS known by man before.
We may find the answers 10
these problems if they are
earnestly sought. Oxygen was
the answer to the stratospheric
problems of flying. Man never
dared enter that zone in all past
generations, but now it holds no
terror.
But our people do not Yet
seem 10 appreciate where we
arc. We seem TO be going about
things as if we thought we
were back on the old plane.
Hence the CIO economists,
Mayor LaGuardia, ct al, come
glibly forward with the PROPOSE
ton that the government must
give every man a Job. entirely
obliVious of the rarefied at
mosphere. and without giving
any sound consideration 10 the
necessity of maintaining our
balance in the face of these
tremendous new influences Of
taxation. spending and debt
They want spending programs
instituted and promised un-
mindful Of the dizzy spending
program in which we are in
volved Which will be ar least
S75000,000,000 for the next q
months.
IN TIE other side. tax re-
" duction is being debated in
the same old way, and in the
middle, the government is freely
entering upon new spending
program abroad and wiping the
billions on the slate Of lend
lease off. and otherwise we are
all conducting ourselves as if
nothing had happened in this
war 20 make new calculations
necessary
If l had anything 10 do with
II I would marshal the most
imaginative and sound financial
minds of the country and set
them TO work out a balanced
nonpolltical program which
would establish some firm
ground or possibilities under
our feet.
The time has passed when
you can let pressure groups
haphaZardlV plan the economy.