Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-04-27
your own funeral with foreign aid?

mated that there are about billion in market value of
United States securities held abroad This could all be
converted into foreign Central Bank demands
gold stock.
At the beginning Of 1858 our gold reserve amounted
to $22,9 billion. During 1858 alone $226 billion in
gold has been taken from by foreign countries. Should
this loss of confidence in the dollar continue, the gold
outflow could collapse our currency.
Since 1850 dollar deposits in this country by foreign
governmental agencies have increased from $50 billion
to Ss7 billion In addition, foreign individuals and for
egn banks now have dollar deposits in banks Of S5S
billion This total of Sl45 billion in foreign holdings
is convertible into gold upon demand Of the holders In
other words, 70 percent OF gold reepe is bjed 10
foreign demand
There is evidence in 1859 that this fight of gold
has ceased.
Our gold stock reduction menaces our economy To-
day the u S. gold ratio money has actually
declined figure lower than that during the depth
of the 1883 depression!
The Federal budget of the United States has been bal
anced only FIVE times in the last 27 years The Federal
debt is now S2S3 billion. This crushing American debt
borne BY only percent of the worlds population is
greater than the combined national debts of all other
countries in the world More than fourth of our Federal
debt has resulted from budget deficits caused by our
foreign aid programs. Annual interest the aid portion
of debt is about 81 billion This interest together
with foreign aid appropriations totals 81 billion
annually Tins past and bresnt foreign aid programs
J0H4i income lax eolEerfi0HJ.
1t has been reported that ma portion of foreign aid
money is spent within the United States and thereby
strengthens economy Doubtless government contracts
for foreign aid materials have brought profits to u S.
corporations and may have influenced them and their
workers to support foreign aid. However, when the
manufacturer product given away rather than strength
ening our economy it siphons off our wealth. Money
spent for goods and services to be used foreign aid
creates consumer buying power but goods
ANA IInara III l.. "a.
nature infiationary.
alleged that foreign aid is responsible for the en-
Poyment OF 100000 American workmen. This claim ig-
nofes the fact that American workmen are already suf
tering from unemployment resulting from foreign aid
grants to competitive industries abroad Moreover the
International Cooperation Administration QCA) pur-
ohaSes frequently discriminate against American produc-
tlon For example, in 1857 lCA textile expenditure
was 1868 Million Of which only S72 million was spent
for American textile products Today bare nearly fire
million unemployed; Foreign did has been continuing
factor.
Administration propaganda seeks to minimize the inn
pact of foreign aid burden by emphasizing that it is
mere one percent of gross national product What
this propaganda does not tell that foreign aid facilitates
the flight of gold from IT, S control and consumes the
equivalent of 2o9o of our personal income tax.
The Administration is eager to keep foreign aid and
all foreign policy strictly bipartisan basis in the
Congress In the last three Presidential campaigns cand-
cafes OF DOM major parties carefully avoided making for
egn and an issue. As consequence, taxpayers in
Republic have never had opportunity express them
selves on foreign aid at the polls.
Unfortunately our acknowledged Federal debt is only
fraction of real debt 1t has been reliably estimated
that our true Federal debt obligations to about
1888 billion. This figure reached BY totaling existing
legislative commitments of sos billion Social Security
obligations of $3.50 billion and Federal Reserve con-
tgen liability of 500 billion, together with the Fed
eral Treasury debt Of 1888 billion.
In addition to the 1888 billion Federal debt obligations
our private individual debt is $685. billion Our net
private corporate debt is $236f billion The State and
public local debt is 500 billion.
The inAationay result of these enormous debt bur.
dens coupled with conhscatoy income taxes is fast I'M
dermining our economy.
To illustrate:
Because Of taxes and inAation in 1857 it took an in.
come off,
A,so6 to match in purchasing power 1889 income
of $4,000;
$4,000 to match 1889 income of $4,000;
$3O,971 to match 1889 income of $4,000
$333,377 to match 1889 income of $4,000
IF things go during the next IS years like they went
during the past Is and the spendes seem to be deter
mined to have 1t that way the dollar will be worth
less Tin 1879 than 25f and will take income Of
$lO53s to match 1889 income of $4,000;
1920 to match 1889 income of $4,000;
$92141 to match 1889 income of $4,000;
$835,393 to match 1889 income of $4,000"
As result of this dollar devaluation and the increased
velocity of money circulation in the past 20 years the
value OF liked incomes of all bank accounts insurance
policies government state and municipal bonds and all
other Indebtedness has been half Thus the losses
already inflicted the American people are enormous
The same processes contnueand the end sight
The impact of our foreign aid on the economy of
nearly all OF the recipient countries is likewise inhatonay
and damaging Many times foreign aid has financed new
producing and manufacturing facilities without coordi-
mating secondary industries and markets This has resulted
in dsocation and the need for further gifts With the
exception OF Germany epeyy country reretRg foreign
aid in fbe bat 10 years has fond that its currency is
softer than before be aid ua5 gipeH.
The initial aid which the United States extended to
countries devastated by World War II unquesonably
accelerated their recovery However, it utterly impos-
sbe for the American taxpayer to tranSuse the econ
omy OF the free world with money blood stream,
except temporarily. The recipient country begins to
live on the transfusion its economy becomes geared
to an income which it cannot, by itself, sustain.
The time has arrived when free world countries must
help themselves. They must establish sound enduring
economies of their lest they PERISH the victim of
predatory Socialistc forces For continue foreign
aid dlsservce the recipients The longer this aid is
extended the longer will be their delay in establishing
self-suthcienCy.