The people's voice., 1959-01-16

+, full employment goal in this coun-
try cannot be achieved unless we
prosecute vigorously the public
side of the economy in such
manner as to open up new and adj
ditionaI opportunities for the pri-
vate investment side of our econ
omy. IF our axle of progress is to
carry us forward, we must approxi-
mately double our rate of public
investment.
Now the obvious question is "Where
is the money coming from?"
Basically the money comes from
the saving on the interest on using
the credit of the federal government.
An example is REA in lending fed
eral funds for rural electrification.
Another example is the Community
Facilities bill which passed the SEN
ate but was killed by Eisenhower in
the House. 1t should be passed this
year.
A third example is the Columbia
River Development Corporation bill
which would make it clearer that the
federal power program in the Pacific
Northwest is self-liquidating, reve-
nue. producing public enterprise.
Many of the groups represented in
this room presented excellent testi-
mony in favor of the Columbia River
Development Corporation bill at Kali
spell. December 18th (1958).
These programs do not involve
subsidies or grants out of the u. S.
Treasury. They are strictly loan
programs enabling us to use our
own nationwide credit to advance
the public good. After all the credit
of the federal government is not
Wall Street but you and me.
One thing which is common to each
of these lending programs is the idea
of the capital budget.
SWEDEN FIRST USED
CAITAL BUDGET
Sweden and several other progress
sive countries have long used capital
budgeting. In fact it was Sweden
which adopted the capital budget in
the early 1905 as its chief tool for
fighting the depression.
A capital budget distinguishes be-
tween mere current expense and long
range, investment.
The two Swedish budgets are fl
nanced differently: The expense
budget comes from taxes. The capital
budget comes from issuing bonds.
Each Swedish government enterprise
Using the capital budget such as the
electric system and the railroad must
'etire its share of the bonds with
Even Swedish government
buildings are built by the State Build
ng Fund and are rented out to the
yarious government agencies.
This is very conservative, busi-
nesslike method of conducting the
public business. There is nothing
radical or even liberal about capi-
tai budget. 1t is solidly conserva-
tive.
Senator Wayne Morse introduced
capital budget bill last August and
5 planning to reintroduce it this year.
By way of summary, have out
med the role of public power as a
orce, both directly and indirectly,
Or economic expansion. In stimulat-
lg industry, rural electrification.
river basin develop
lent and greater use of electricity,
ublic power has been a force for
ational prosperity.
The recent election indicates a bet
,r understanding and public accept
nee of the role of public power. Our
nalysis indicates that the Hells Can
on issue in the Senate has risen from
bare majority of votes to an over
helming majority of "a votes. The
ection was hard on the enemies of
ellis Canyon Dam.
OMANS' GOLDEN AGE BUILT
N PUBLIC WORKS
l would like to close by reminding
~ that public works was one of the
lief factors in the golden age of
oman history.
1t was the boast of Augustus Caesar
at he found Rome brick and left it
arble.
The Age of Augustus, lasting about