Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1949-12-09

investments such as roads, hospitals, schools,
homes and public works. Some of these long
range inVestnentS-such as those for reclama-
ton proiects-will be repaid to the treasury
directly Others will result in indirect repay
ments through increased earnings which bring
in higher tax collections
There has long been demand among stu
dents of the federal budget for this kind of
information. They have contended that cor
porations and individual citizens differentlate
between going expenditures and long-range
investments, and so should the government
man who makes $4,000 year, for in
stance, cannot afford to spend $4,000 year
for living expenses But he can, and often
does, buy a home costing $4,000 and bor-
row most of it with the idea of paying it back
over long period of years, while he enjoys
the new home. Or he may borrow $4,000 from
a bank to start business from which he
hopes to gain additional income.
Emil Reve, chairman of the CLOS full
employment committee, raised this issue last
week when he asked one of the most pertinent
questions ever submitted to Congressional
committee Rieve, in testimony presented be-
fore Douglas subcommittee of the Joint Con-
gressional Economic Committee, asked:
"Why is it that when private utility COM
pany floats bond issue, and uses the funds
thus obtained to build new power plant or
a series of transmission lines it is entered on
the books as an asset; yet. when government
agency, IVA or the like, borrows money
and does the same thing, it becomes an all
terrible public debt, with nothing good to
be said for it?"
The implications back of this question are
tremendous. Our expenditures this year aggre-
gate SAB, 500 900 600 But how much of this
goes for current running expenses and how
much of it represents long range investments,
many of which will be self-liquidating either
directly or indirectly at least in part?
No one knows the answer to these ques-
tions at the moment But there is reason to
believe that perhaps as much as SIC, 900 000,-
600 out of the SAB 500 900 900 is going for
long range investment of one kind another.
We are spending this year IA billion on buy
ing surplus crops; 1.3 billion on purchasing
mortgages on homes; 3 billion on civilian pub
lie works, and stockpilng strategic materials
for national defense. Other money is going for
education, research, or other uses that will in
crease future national income Much of this
money will come back into the treasury.
Much of the rest is the long-range type of in
vestment that should be amortized over
period of years, instead of being paid out in
cash.
If we are using 10000, 100000 this year
for long range improvements, or investments,
then our current running expenses are only
$33, 500, 900 900. Then instead of shuddering
at deficit of more than $4,000, 100000 we
can do what business corporation would do.
We can figure we are taking in almost S5,000,-
600 900 more than our current running
penses, and call that surplus. to be used to
amortize our long-range investments.
Thus, the information the Budget Bureau
is compiling, could change the whole atmos-
phere in Congress next year 1t might show
that our deficit is nothing more dangerous
than a sound investment that any business
man would make.