Evening star., 1950-01-01
Mounting Public Debt Continues
/ ToShudoW Government Outlook
By Herbert Brotter


Today is just the middle of the
year for the Treasury Department,
And not such good year. at that.
Not with Uncle Sam running into
the red at the rate of more than
$4,000, 900 every day, Sundays in
cluded-$512 billions a year. And
this a time of full employment and
the full dinner pail.
Nor is the outlook any happier
for the Governments bookkeeping
year which begins next June
Within a few days now the Presi-
dent will send to the Congress his
budget proposals for the fiscal
year 1950-51. There are signs that
it, too, will result in a deficit OF
substantial proportions. Don't be
fooled by any proposals you heal
for tax increases this year, to bal.
ance the budget. Next falls elec.
ton campaign is nearing.
Plenty Of people are worried
about the public debt, which
mounted during the great depres-
sion of the 30s, scared during
the recent war, and now-aftel
only the briefest breathing spell
resumes its ever-upward thrust
Well over the $250-billion mark
the Federal Governments debt
now exceeds half of all the debt OF
the Nation, being greater than all
other debts combined. The Govern
ment is living beyond its means
and contemplating new programs
of spending, the while American
officials are telling other countries
to put their houses in order.
Blame Each Other.
Who is to blame for our faulty
finances? Administration spokes-
men say it is Congress, because it
lowered income taxes in 1948 when
we should have been looking to-
ward debt repayment. Congress
men reply that the administration
is to blame for bringing up its cost
ly welfare program. when we
should be economizing. Others say
both Congress and the admins
tration are to blame. for pushing
and enacting such policies as max
ing secondary market" for mort
cages and lifting farm price sup
ports. even against the advice OF
farm organization leaders. Right
now the American Farm Bureau
Federation is fighting Secretary OF
Agriculture Brannan's plan to have
the Government "pay part of the
grocery bill Of every citizen u
Who is not to blame. we might
ask ourselves. Every pressure
group is at fault: Veterans, whose
appetite for public aid is insati-
able; farmers, who never have
enough; States, which want all
sorts of Federal aid; businessmen,
who crave Government help in
countless forms; miners, railroads,
steamship and air lines, and for
eign countries which, while still
incredulous. hold out their hands
for more.
There are only three ways for
the Government to raise the cash
to pay out the subsidies, aids and
favors. It may tap the taxpayer,
but that hurts. It may borrow
from the frugal. but there are
limits to savings. And 1t may re-
sort to the infationary process
of borrowing from banks which
merely write up a credit on their
books, but that process, adding to
The supply of money. is inflation-
ary and so tends to rob of some
If its value every dollar of cur
.ency outstanding and every dol
ar of savings bonds. .
Dollar Worth SO Cents.
Just consider this: A dollar in
vested in q savings bond in 1889,
when the Governments debt was
S42, 900 100000, would buy a dol
lars worth of goods and services.
Last month when the debt was
$257 900 600, 900, the same dollar
would buy only 50 per cent as