xt7wwp9t2q46_68 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 71 "Budget Prospects: A Discussion of the Choice between National Solvency and the Breakdown of Treasury Credit with Resulting Devastating Inflation and Chaos if the Administration Continues Its Flagrant Violation of Campaign Promises," October 21, 1935 text No. 71 "Budget Prospects: A Discussion of the Choice between National Solvency and the Breakdown of Treasury Credit with Resulting Devastating Inflation and Chaos if the Administration Continues Its Flagrant Violation of Campaign Promises," October 21, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_71/Am_Lib_Leag_71_001/Am_Lib_Leag_71_001.pdf section false xt7wwp9t2q46_68 xt7wwp9t2q46 The Outlook for 1937  
If the estimated expenditures for the fiscal   * *
year 1936 foiil general purposes are regarded fas   ,
constituting t e minimum which is necessary or  
the fiscal year 1937, it means that the new bud-    
get will start with a total of about $3,500,000,000.  
To this will no doubt be added at least $500,000,-  
000 as the normal annual outlay for construction   ·  
and other ordinary activities which are now
classed under "recovery and relief." This makes p _,
a total of more than $4,000,000,000 without re- _
gard to work relief, direct relief or agricultural .
benefits. Upwards of $1,000,000,000 from exist-   - * * *
ing appropriations for public works and work   I
relief will remain for expenditure in the fiscal  
year 1937. Presumably, more funds will be  
sought for work relief as well as substantial sums   _ _ _
` for direct relief and for agricultural benefits. , A Dieeusslen Of the Chelee between
Numerous other projects are certain to be   National Sglvgngy and the Brook.
pressed, including $2,000,000,000 for immediate   d f T C d.t .th
payment of the soldiers’ bonus. j V Own 0 reasury rc 1 W1
It is, therefore, apparent that unless under- §; ResultingD¢vaSt¤ti¤sI¤H¤¢i¤¤
lying policies are sharply changed, there will be   and Chaos if thc Administra,
a strong tendency to spend as much in 1937 as Li .. .
in 1936.   tion Continues Its Flgrant
· The Congress will have an opportunity to re-   Violation of Campaign
view the work—relief program. It will not be too   Promises
late to discontinue some projects which lack   g
economic justification. In the Work-Relief Act . T.
the Congress delegated undue authority to the  
President in the expenditure of the funds. Be- q?
fore granting additional money for any relief  
activity, the Congress should insist upon the  
exercise of its own constitutional prerogatives.  
The present work-relief program was not prop-   ,»\’· €`4
erly studied either by the administration or by of Y   4’
the Congress before approval of the appropria- _ ,..   ,_,
tion. . ‘ » Tv  C?
Economies can and should be made in present `°»?;·Y  Lev
general expenditures. Appropriations for both  
regular and "emergency" agencies are far greater  
than necessary. An investigation by the Con-  
gress of such part of the governmental establish-   -
ment as has been built up by executive authority  
without specific authorization in law would be  
from the standpoint of the taxpayer highly   V
  National Headquarters
  ik ak 1
  Document N0. 71
  — October, 1935

 . I ‘ 1. By reason of a tremendous increase in tax
I burdens, revenues during the current and subse-
quent fiscal years will be greater than in any
BUDGET PROSPECTS period since ininieeiiateiy after the World war.
2. In spite of record-breaking revenues, the
* deficit in the present year will be larger than in
_ _ _ _ _ I P 1932 when tax receipts shrunk to the lowest re-
_IIhP0I`haII@ d€0ISI0IIS I`SSbSS}§IIIg fIS?al P9lI?ISS i cent level, less than half their present volume.
WIII C0IIfF0III3 the OODSISSS III IJUS Cbmmg SSSSIOIL ’ 3. Reductions in estimated deficits below those
The annual budget for the fiscal year 1937 is in . at one time niedieted by the President meen
gI“€}ta_I‘ai6}0h ahd Wil; ieee S1gbIIII(lil?S exaetly as by _a { necessary relief, and as business improves reduc-
family which l1ves within 1ts income. If this i e tions enonid be pOSSiblۥ
pregrarn is put inte effect fer the next fiscal year, 5. A threat of continued deficits 1iee in the
there WIll be H0 dIfh0III’0y ab0IIh a 00IIIPI€l¤€Iy bal-   failure of the billions expended or appropriated
aneed budgal? fb? the I°ISSaI ySaI` 1938- _ l for emergency work projects to provide perma-
Rates ef taXa’¤I01I aI°€ already S0 hIgh that l nent employment and in the inevitable pressure
they acttas a serious deterrent to recovery. Taxes i to appropriate more billionsi
· Gahlbe 1II0I`€aS€d P}i`aSn6I0aIIy 0hIy by Iiclugehg 6. Continued expenditures for urgent relief ‘
Sma €1‘ IIIGOITIGS W I0 are HOW SXSIIIP - S needs, which will be necessary for a time on a
C0I"IgI°€SS and the adIIIIhIShI“aJ°I0II have _b_SSII reduced scale, can be financed without incurring
agalti ’60I}I>Yf>ad€31’©h€ base b€1ga(IiIS€ elf hh? P0hl¤ICal shibstantial ldeficits, if economy is practiced
e ec . n ess ere is mar e re nc 10D in ex-_ t rong ont t e Gov rnrnent_
b€IIdIIIII“€S» hhIS SOIIYSS IIIIISJ0 be IIlbIYIIab€Iy f0I· 7. Present policiesein regular departments and
lewed. S0ak1H.%° the I”I0h §?aIIIIQI5 Day hh? €II0I°· "emergency" agencies countenance the greatest
IIIOIIS €XPShSSS hhI_S adIIIIIIIShI"atIQII IS PIhII§ UP- riot of extravagance in the history of the Govern-
No administrative or legislative action can inenn
sive mere eertain premise ef rapid business ne- s. The Federal bureaucracy has been expanded
eevery than the abanelenrnent ef spendthnft as never before and many thousands of jobs have
POIISISS WaS}°S_ and SXII‘ayagaI'IS€ haya ehan E been dispensed on a spoils basis such as would
aCt€I`IZSd SXPSHIIIJSIIISS III tha Y€§IIIaI° as WSH as i not have been tolerated by any other administra-
the "ernerseney" branehes ef the Gevernment- » tion er either party within the inennery er the
A vast network of bureaucracy has been created E present generation.
under executive orders without the specific legis- 9_ Thg public debt has been inereesed ini.
lative sanction intended under the Constitution. gbgvg fhg Wartime peak and future generations
The Wahtbh PI"0hIgaSy ef hh? PI”€S€IIh a€hTIIIIIS’¤}‘a· will be saddled with the burden of paying for
lJlOI1 I`€pI`€S€I1l}S Hi H3igI`2lD}D V]Olfi·l`»1OI'1 of C3IIIp8i1gI1 the pygggnfi   OI·gy_
pledges. Prompt elimination of deficits, now in
their sixth year, is one of the essentials for the -
preservation of American institutions. Indefinite · Rcvlsed Budget Statement
continuation of an unbalanced budget will lead . The Presidente ennnei bndeet fer the neeei
to a breakdown of Treasury credit, devastating I year 1936 Wes submitted te the Ceneeeee in
inflation and chaos from which might come dic- ‘ January 1935. In eemnhnnee With e erennee
tatorship and an end of constitutional govern- inede then the President en September 29 1935
mmib , A, _ submitted’a revised budget statement ’ This
Slgblflcabt faefs Yegardmg the budget SIWSUOD statement contains a revised estimate of revenues
Sm: '_ for the fiscal year 1936, together with a revised
2 V 3

 estimate of expenditures on the basis of appro-   as much as $920 000 000 will be S ent dum, the
priations and the present status of the spending   fiscal yam. 1937’mtf]€I, than duriigg 1936. eThiS
pi`egi`e‘m· . . i deferment of expenditure and somewhat greater
The iievieed eieiemeiie Sheds eeme iight eii the receipts than at first anticipated account in large
lereeeue budget but mieeie e measure ef eeii' part for the claimed reduction in the estimated
fusion by use of a classification of general and deficit fm, the Cuwem em,
"emergency" expenditures different from that Many Of the fmquiént `claims Of TOS Qctive
used during the past two years. The effect is to Sagings are baqcél On com arisms iithp Em _
shift a greater portion of expenditures from the I gemted Gstilnatgq Of EX €m£t_m_€S The bud it
se¤<~>m·1¤> the eemeiegeiieyii eeiumm eiiue mekiiig ? for the Hscal vear 1935p submitted to the Cren-
iiieiieeemgiy eiimeuie eiiy eieempe ee eempeie eee i gress in January, 1934,,and that for the fiscal
Yeeije ieeev ieee eud ieee Wiiii ieee end piiieie · year 1936, submitted in January, 1935, contained
yeeie: . . , . expenditure totals far in excess of amounts which
Neither in the President s accompanying com- it was physically possible to Spend A false im_
meiiee iieii iii the iiebuieiiieiie ei iieiieiiuee eiid ex' pression has been given when figures of actual
peudieuree is euy Speeiiiie mieiimeiieii given as to expenditures. representing substantial increases
preepeeiie ieii iiiie fiscal yeeii ieee: Beyeiid he , over previous years, have been pictured as sav-
geiieiei iieiie ef ¤pP1msm» iieiiimg m the Pi`eei' ings in comparison with fictitious advance esti-
dent’s comments justifies confidence that the , mates Of Outlaws
submission of the new budget next January will } ‘ '
mark a return to sound fiscal policies. While the l .
President asserts that new taxes will not be   Premise and Performance
Eiiiegpiiiiifjiii iii°tZer§;€$h§sb’€eF§1iiZi%'sS§., , , {ge gcgrdyffghe q¢¤§¤iS¤·e>i¤¤ with respect
which is obvious in the light of the extra burdens i e te . ii.  e ere igi e iieeeeii fer iiepe thee
imposed upon the taxpayers, he gives no pledge y §rei,_ei%e€ eeiiietiieii ,,ehe‘iie’eiied ee i’iie.Pi`eei'
that these "necessarY annual operations" will be ` bee e e e emeiii {Lei i. e 1937 budget IS new
so scaled down as to permit a lightening of the i .em,5 piieieeiied gv  e View be eiieiipiy dee}`eeS'
load. He notes that "the prevailing rate of re- i memiielgpiiee e Ween iiieeme and euigd
covery_points to the speedy decline of Federal J mmesed eiiieeiieiie ger? iiidii§ ieoee r>g»tf¤.¤¤
expenditures for emergency act1v1t1es," but he pf U an gems ieie eii ree ie. re ueiiieii
does not admit the futility of any part of the y Ei ;°eVemeieii.ee expeneiiégiiee by ebeiiehmg use'
public works or work-relief expenditures, nor   eel, eeeigmieeiieie eee e eee* .eeiieeiide‘i’mg de'
does he express any intention to abandon the   ger ment; e’H_ m,ee,?e’ e’ee.eiim¥iiei’iiig exiiiieih
policy of making expenditures for the sole pur-   tgee€e’ H eeeemp   eujevieg e iieii less iiieii
pose of creating jobs. He gives no assurance { Wen yi ye ve eee iii e eeee ei Fed<=m1G¤V-
that he will not ask a further appropriation in l eiiimeiaig . h .
the 1937 budget to supplement the present Octiib ilqeemgigeggil, Spge at Pmburfeh ee
$4,000,000,000 work-relief fund. No promise is Q er `·’d  ’h ie egieeretie Piieeideimei
made of a balanced budget in 1937 or at any »_ mmiimee sgi let ne leger ed redueeieii in Fed`
Other Specific time- . , era spen   as lone of the_most important
Nothing in the revised budget statement war- I Iieuez eg ff iejn. iii IS e%iiieii ie Wee the meet
rants an inference that the administration pro- i Hee ell; E ele ire eeeiiiii uiiee iiiee geveiiiimeiie
poses to spend less than actually appropriated by i ce? {Ee e eh.ueineee' . . .
the Congress. While the budget as submitted in e ewme vie ieeuguieeiei? iii e epeeiei mee'
January, 1935, showed the prospective expendi- 3%; i),§§pi§ie¤§ee€€iqig ggi%e“eieii ee Meieeh ie>
ture of the entire $4,000,000,000 work—relief fund ~ h- ’ it i",‘?S‘ efid is ti e Oeereee that it Wee
during the Hscal year 1936, the Congress made ietgege ifu ieiiec . ii Y te eeviee yeu as te the
the amount available for expenditure during a gif te ever; femme diieeeie ieeiiieiieiimeiie at
two—year period up to June 30, 1937. The Presi- IS diiiie ee je>e;e,,eeeu(i:ie,i}ee that ii iiie i`eeem`
dent says that "some of the heavier Projects will mee e igmglweée e ere t Wiiiem e Yeei`,i’he m'
continue under construction beyond June 30, Egg; She G; €Heg,g1eg§ei? Jlvi Gee eumeiem} ee
1936·" He dm not ere the rem i¤V°lV€d» Despite the sSam€°ths §st&`£§iEiti2itSc3i
but by e pmeeee ef euifreeiien it eppeere thee years 1934 and 1935 and that in prospect for
, 5

 3936 e‘I`e.eeeh ereater than in any previede year   purporting to set forth views of the President
in the hleegryief ege (e1`?Vegd%°Vem°> bemdng Only 1 without quoting him. This sets 1939 as the first
We reefs drmg e er. ee year in which receipts and expenditures will be .
Ie he euetgee meeeege m.deedery>.19ee> the approximately equal. Any forecast of the fiscal
Preeldent mmeted 9 31399919 expendltum pre` status four years hence is obviously worthless
gram for e ewdyeer pelded embraeme the fecal even if the present administration remains iii
ge1j§€t1?(§1f1tggegstzeeygaetlgggmleedyjarbegegrejg . power, because of the demonstrated habit of
his budget message for the fiscal year 1936 he   changme pchmes at frequent mtervele
changed his policy, proposing a spending spree 1 .
greater than anything he hgd previously sug- I C°mP91'et1Ve Totals
erested, and did not attempt to promise a balanced l Th bl- 1 I 1 7 _
image ie 1937 er ear Speeae Subeeeeeet year- ttee ?epFtteti$1§Se?r»?t$eytS§Z?ei§i§",§$ef5§§°fe
The budteet fer 1936 fereeaat e pdbhe debt at A the finances of the Government. A few billions
e2e.e¤d ef the esealyeafeearlytre a¤d¤¤e-half 1 me,-e or less lack significance in the minds of
billions greater than he had said in his 1935 bud- 7 many peeple whe might have been impressed
get message Sheuld be the tee dede 11 the re' . some years ago by a threatened deficit amounting
vised budget statement proves correct, the debt ¥ only te hundreds ef theueemde
will not go that high this year. That IS all there   . The tebuletien which fellewe ie intended te
IS te the aueeed ee*Vmg· 1 give a picture of the changes which have taken
_ e   place in the fiscal status of the Treasury since
Exper1d11:ures for Three Years . tlfe pre-war period. It shows total receipts, ex-
_ _ c usive of postal revenues, total expenditures and
1111116 011811131 1936 budget the 388168316 ex; surpluses or deficits during the fiscal years from
Pe¤d1t¤1`€S 10T the Jehree 113031 Yee11`S, 1934, 1933 1913 to 1935 and estimates for the current fiscal
and 1936, Were eSl¤1me1?ed 36 $24,2%,532,719, 3 A year 1936. For the years up to and including
tetal 31111086 65 great ae 311 eXPen<111¤1”eS during 1933, general, "emergency" and trust accounts are
the first 124 years of the Government from 1789 1 1nC1ud€d_ For the yggrs. 1934, 1935 and 1936,
te 1913- The tetal fer 111056 Yee»1`S, eX’¤e11d1¤g te J trust accounts are omitted in accordance with
gg; ggtgigegogf the W11S0n 3dm1n1S11`a’010Y1, W3S the practice followed in most budget statements.
The ireceint revised budget statement shows A S,,,.p7uS(_*_)
that actual expenditures for the fiscal years 1934 Fiscal _ _ or
and 1935, together with estimated expenditures 1/ee" Reeeepee Expenditures Defienf (-—)
for the fiscal year 1936, will amount to $22,233,- A 1913 · $$24,111,236 $724511,963 $-400,733
207,249, _Wh1e1, is e1,9vs,e26,4ro less than was 7 {3};:; 6§$»g,g»gg§ §§g»g§g·g·g; _6;gQ§,g$g
fereeaet ni January, 1335- _ 1916.. 782;534;548 734;056;202 +489],78:346
The claimed saving is merely an error in ad- 1917.. 1,124,324,795 1,977,681,751 —-$53,356,956
Vance estimates and does not represent a tighten- 1918. . 3,66%,582,865 12,697,8%,705 -9,033,25;%,840
ine ef the ¤¤rSe.S¤1¤eS·BeSi¤mpl¤>¤¤9¤S due *¤¤ gold md about 22 pa cent of Mapa withatotal cf about
silver transactions are avoided. The “profits" i $1 460 000 000 Cueienie revenues eeeeunted fel.
from the devaluation of the dollar and from the ] ebbubb ei. eeni with e tem] ef ebeub $323 000 _
purchase of silver are recorded in trust accounts. I 000 Tblfe ieineining 14 bei. eenb eeme freinl mis;
If trust accounts other than those relating to gold eeiieneeue eeuieee
and silver were to be included for the current I During the deeeide beiivveen 1920 end 1030 it
lescel yeelu It Weuldmeen en eddltloll Of about l was possible to reduce income tax rates and to
$l7O’OQO’0OO l`° l`€°€lpllS* ellelll nl80*00O>O00 fe f repeal or reduce many miscellaneous taxes. By
expenditures and about $10,000,000 to the deficit. g 1926 ineeme iiexee yielded ieee then beif when
It may be noted from the fenulenen that the i they did in 1920 but nevertheless remained the
ellllllel budget Wes below el bllllml dollars l>€f¤r¤ l chief source of revenue, and, with reduced miscel-
the ,WOlllll Wen The llllge Well eXpellCllJ°lll`°S* ‘* laneous taxes and customs revenues, were suffi-
ggglggglgeeg lll iggu 1918 fluid Kleine   cient to maintain a balanced budget. Revenue
f i’ * ’ unc une dmolee 9“llTh ’ > d n .t from income taxes increased considerably during
O Cans to B e .l€ ne lone 9 Weld B G1 the period of speculative profits. In the fiscal
was lellelllied by Llbellty b°nllS‘ The budget was year 1930, even with relatively low rates in effect,
balanced lll the lelscel Year lem nlld every year i income taxes yielded about $2,410,000,000, repre-
lllelqeeffell up te elld lllcllllllllg. l93Q‘ Normal   senting about 58 per cent of all receipts. Internal
expelldltlllees were 9“bOlll°.f°lll` bllllene ln the years l revenue receipts amounting to about $628,000,000
Just plllole le f’ll€—°l€pr°SSl°ll.°f 1929* Then °°nl' l accounted for 15 per cent of the total, customs
meneed eelllllrlkegelcf l~€°€lplS,;ell°l en expenelen duties amounting to approximately $587,000,000
Of expenditures fol`. emergency plllepesee Ave"' for 14 per cent and miscellaneous items for the
age annual expenditures of the fiscal years 1934, remaining 13 pei. eenb
1935 and 1936 Wlll be more than $7*400>000¤000‘ The depression was responsible for the shrink-
l age of revenues in 1932 to the lowest point of
Revenues the period since the War. Income tax receipts
Th i u .n mbuiaei h _ i shrunk even lower in the fiscal year 1933, new
diff Tins GEC? in the egcziewsaleigggeen iem miscellaneous taxes being responsible for some-
ui G ef fof eh S d . ye} lie . - ieee; Ori l what greater total receipts, Income taxes brought
G 6 ec 9 8 .eP*`eSS1°¤ was F » m . » 8 in only $746,000,000 an ieee, less than one-third
the low point of income tax receipts, and in the the wml ei 1930 In 1933 ineeme taxes ee_
Clllleellll llscel year 1936* counted for only 33 per cent of total receipts,
  while internal revenue, amounting to about
ea;z..·>:r:.....-4.........   i746     f?§?.;2?$"i22gl§l°S°?E“§§§l §‘;2.fSm2$2l§§“€4 Oil?
ofigigiiiie fffff f ff] X f f I ff f f       4 42 per cent of expenditures, the remaining 58 per
  55l’“lliei ?e’l8.l??ll §§é;335;538 l cent bems b<>rr¤Wed-_ _ _ _
Totals ................ siinmnni s§E§§l§sI{ 15 $4 470 349 140   BY meson Of the lnelebllllv ef ln°°me.l°eXeS
  i as a revenue producer in times of depression, a
_ _ _ f greater dependence upon excise taxes has been
_ Cnenglng eeneuuene eve? ine years have neeee' l necessary. Many new miscellaneous taxes have
sitated new methods of raising revenue. Before been imneeed in recent revenue ievve Siinuitene_
the War about equal amounts were raised from Ously, ineeine tex mbee have been greeiiv in_
eueteme _duuee end lneerneu revenue te·XeS¤ tne creased, partly due to the insistence of those who
letter nelng enlenv en nduer end teneeee Otnef would promote a redistribution of wealth by this
‘ eeureeeef revenue Welle lneeneequennel _ means. Present income taxes are so high as to
_The lneelnedlerx eunenumenf te ine Ceneueu‘ retard recovery and under existing conditions
uen> Tanned In 19134 eeune In enne be furnlen will not produce sufficient revenue to justify
a mayor means of raising revenue m the War themselves.
PeHed· In 192e> ene nree Peee'vveu` Yee? In which For the current fiscal year 1936 it is estimated
ine budget Wee ba1e¤<>€d» 59 pen eene ef en Ye' that income taxes will yield about $1,434,000,000,
eelpte eeme umn lneeme and Puente enxee The or 32 per cent of all receipts, while miscellaneous
total from this source was about $3,9%,000,000. interna] revenue vviii amount be ebeub $1 855 _
Miscellaneous internal revenue accounted for 000,000, ei. 42 per eenb ef the bebei Preeeeeinlg
8 9

 texee will yield $5%,000,000, 12 per eerie ef the $4,053,653,532. The aggregate net income of all
fetal,   etleteires;je ee eeee*>ee» exrsrrng rates , lion of receipts and expenditures-. As an after-
. · . . t h h '-
Enactment of legislation like the Revenue Act tgsssi Qggsssagggi Eailsriteltglatlgilsialiggllgf. 
ef le Whieh ree eimee.e*> leeee eeeeeeeeeee the fiscal year rear expenditures were cut to are
and wealthy 11'1d1V1dl13,lS·,W1ll hamper rather than lawsst paint sims tha War a total Of $3 493 _
rlfijier ie @**1 attainment ef e beleneee budget 584,519. or thistotal, amoiints directly attriti-
aagg 50%   . ;?iVd£siO‘;s’;imTséJ$’gn;§ grass sgqsr utable to the World War and earlier wars aggre-
  aaa, a aaa a raeaaeqaearrarifir eta? md rim’§2°*25§r’“°‘u°““g s’3°“’574*422 r°"
ramen with the tetel exreneieeree under the i2l?f§Ele§€ laid‘°$ra%°ai§ié%f`“r“t,ST§’E$?e",¥e d§,l’rl
eeeeeee eemieieeeeee- The heeeieeee even ie- teaeare te veterans rir all Ware. an other er-
dustry embodied in the terms of the measure far penditures totaled $1 449 764 366 Dsdusting
eeeweieh env eeeeible revenue eerie- Wieheut war pensions geaerai erperiarairee in rare
eer eueeeee rnnre reeeeeeble eeeee, based ee amounted to ohly $549 000 000. The Government
eeuee revenue prrnerrnes rsrner thee npnn Cem' spent $585 000 000 forinational defense alone in
munistic redistribution of wealth theories, will 1927. ’ ’
yield greater revenue over a period of years. . Thats appsats Httls Ossibilit that aa at
It would be folly to attempt to balance the ll th ·t -11 · th tpt Y y
budget at its recent level by means of increased ,_ WE; Ehilggswvgtia   19;7_u %`1r(fai?; €§$;.(a;;>b§s;tr;
eaxegee egegg 0ema¤egee¤e§f_eex bueeleee ie , were cut appreeratiy under are Economy Act of
r e nge Tgtee ee , ieee hrrrsrn rrsqnenrl? ’* the early days of the present administration, the
eee ese e· e feet ls r er r e larger leeemee reductions have been almost wholly restored and
jggnaeaeitageageeagsg ggtgsiedprggtscé? Orgs the total for the current fiscal year is estimated
. . · ‘ t 710,000,000, b t t` ll th ‘
siderations have kept the Congress and the ad- §92§_ The intstssetuas 3; geuggis dibieaigg sritsatile
rnrnrsrrsr’rOn_‘rrOrn nrnsdenrng rne present beee Or tory debt retirements in the current year despite
texetiee by m01`€&Sm§_HOYm&l rates and lewerins lower interest rates, will amount to $1 506 000 -
exemptions. Such action would be advantageous 000, almost sxastly tha Same as in 19’27_ ’ Na;
treat rtnstsrsnilénrnr gf edldleleeel eereeue eee tional defense, not including construction items
iiepulztien izvaiigconlssdioisa ginger portion Of the listed ee ef ee usmsrgsncyn ¤atuY€» Wm COSJG
. . . ‘ . , 700,000,000 th` - ' -
The limits of income taxation are evident from gt-,0 Oval. 1927_ lsgaggsaggtualssriiis Ig§s§g1i;££)(;{s
s eleeee et srerrslnes ef re’rsbie.esrnrngs· rrns functions of a general character will amount to
iisririarii I§.§’$,L“i3?ia2f $$ieii’§lll1d“&1S i`3§§“‘“g eb““’° f892»°°°»°°° this >’€e*`» ee imeee ef
¤ reef wss $27,000,000 over 1927.
10 11

 In the present segregation of general and Deficits
"emergency" expenditures, some hundreds of Th - - . r
millions of construction items of a normal char- _ in WEig}?S§;I§eg§?ti1;;ethrfegextlelxeuesegelle Keir
acter as well as various other items are listed as from taxation and ether erdieer se e lleee,E S
"emergencies." These should be added to the greed total of the deoeite ree geeeeulleee lle
general total in any comparison of 1936 with be epproximeter $18 ooo ooo ooo e e years lil
1927 and with future normal requirements. It than the entire yubhe deee et ee ebelllll glee ele
is impossible to segregate these but it is probable * the doprossioe p e egmlllllg e
that instead of $3,597,508,000 of general €XP€n€ll‘   The first deficit of less than a b`ll' ' tl
tures as estimated for the current year, the total Hscal Yom, 1931 Wee dee ehiee t l lg}? lllk le
comparable to 1927 and other pre-depression G of revenue from ieeeme tex {the ah" lilll zag
years would be far in excess of $4,000,000,000. turoe Wore e heel e mere thee? 3] eng. expen l`
Expenditures at the beginning of the Hoover Of the deficit of m eh $3 ]-O€OpI6€V1OuS•y€aI`·
administration were at a level of about $3 850 - fr Ore an Z ’0 0’e0e lll the
. . > > scal year 1932 about one-third was caused b
000,000, which was increased to about $4,000,- expenditures for emo? eee ur e er thy
000,000 as funds were needed for the revolving remeioin eWo_th· d g le p ,epe“ee’ W l e e
loan fund of the Federal Farm Board and to h e- ll S was ue O e lullllel Yely
eavy shrinkage of tax revenues as business
more than $5,000,000,000 when funds were appro- profits disappeared The dee .e f th
priated for the Reconstruction Finance Corpora- $3 000 000 ooo in te H I Cl O lllele an
, d they S eeiel ur eeee. , , ,_ e Sea year 1933 was based
@1011 an 0 D P P on the continuance of both recei ts and ex d`
It would appear to be probable that the future tures at about the 1 e p . pell l“
. . vel of the previous year.
normal budget, without reference to relief needs In the moe] year 1934 the fr e r H f h
or agricultural benefits, will be at least $4,000,- present edmrorStro_tion’ recoil? u tyeell O tre
000,000, although it could be made considerably $900,000 ooo with the ’impeel?tiSeI;Ve)l% elelgv gear Y
l€SS if dfaann} €00n0In§’ W€Y€ P1”a0l10€d· If but expenditures increased b about $1 800 lllfiflisl
$1,000,000,000 IS appropriated for relief purposes, 000 with the result thee there e em Q,
it Will mean a budget of $5,000,000,()00, or about eeeery $4 ooo eee eee th t VleaSfa e cit o
$2 500 000 000 below the expenditures of the · ’ ’ ’ ’ 1 B glee es. O any el elle
, , , _ six years. There was a further increase of re-
present year. Further reductions can be made cgipts amounting, te need $700 ooo ooo . 193
when the States gd l¤<éal ¤§mie1¤¤ll}¤S ere able but expenditureg rose by &vo,c60,oo’c, rhindeseié
again 0 assume G en nn nl en 0 Tala- falling to $3,575,000,000. In the current year
P C e C receaipts wgltbe $67(e,000,000 greater than in 1935
gr aplta Osts an expen 1 ures a out $380,000,000 greater, the-
prospective deficit being estimat d t l'ttl
The mounting costs of government are shown m01‘e than $3,280,000,000. 6 a 3 1 6
strikingly when estimated on a per oapita . If the present administration had kept the
basis. A little more than half a century ago, in Pladgna made in the 1932 Campaign and if it had
1880, expenditures of the Federal Government not Spent large Same f01‘ public works and work
amounted to $5.34 per capita, By 1900 they had 161191 as barb _0f a deliberate policy of creating
increased only to $6_g5_ Shortly before the employment, 1t could have held expenditures
World War, in 1915, the per capita cost was $8.27. e*mlu2·llY JDO $5:000,000,OQO €V€n with a consider-
In the low year of expendrtoree Since the War able outlay for direct relief or other "emer enc "
_ s . g Y
19277 the amount per eoorte Wee $33.05. The _ purposes. This would have meant a deficit of
relatively moderate emergency expenditures of leee than $2>ee0»eeO>_0OO ln 1934, a little more
1932 boosted the per capita cost to $42.96. In Ellgll $l>eee>eee>e0O m 1935, only about half a
the current fiscal year 1936 Federal expenditures . l lell lll 1936 and a COmPl€l?€lY balanced budget
will amount to $63.14 per capita, almost ten elleleel Tllele Would _l1aV€ been a §aViHg in
times the amount at the beginning of the century. e Cllghelld eelleeelllelll mP1`€aS€€l Pnblln debt 0i`
Thelsee per capita filgurles, which are computed more an $7,°°0»°O°·O00 ln 111169 Y€al`S·
in eac instance on t e asis of the most recent .
decennial census, take no account of costs of state General and Emergency Expenditures
and local governments which similarly have Under the present administration, the Daily
mounted. e Treasury Statement for the fiscal years 1934 and
12 13

 1935 1116lue1’6d 3 SeS1`6g3t1011 61 36116131 3110 less than the estimate in the original 1936 budget.
611161‘g6116y 6XP611d1tu1`6S, 3110 b63`11?111111g _W1}°h The estimate of last January was_$4,398,402,134.
the P1`6S611tf1S63l y631‘ 1136 $11111560 to 3 6133611163 It would appear that a substantial part of this
t1011 111_Wl116l1 g61161`3l 31111 “1`660V61`y 31111 1611617 reduction is due to the change in classification.
eXli>611d1tu1`6e 31`6 S6§1`6g3t6d· The change in classification is an example of
U The folloyyrns table shows actnel_ general and the juggling of figures which has taken place and
611161g6116y 6XP6116l1tu1`6S 36 01`131113lly 66316- which tends