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Show Bruckart's Washington Digest Rumblings Over Federal Spending Come From Two Different Sources One Side Proposes Policing U. S. Operations; Another Insists Wanton Outgo Must Continue; Secret Memorandum Memo-randum Offers Program for 'Rebuilding America.' By WILLIAM BRUCKART VY-Ntf Service, National Press Bldg, Washington, D. C. WASHINGTON. Rumblings have begun to occur again lately about federal spending. Some are for, but most of them are against, continued outgo of federal funds. They have come from widely separated schools of thought, as might be expected when there are those in the government govern-ment who favor unlimited spending and those who believe in watching government finances with an ey to the future. I will try to piece them together for you. Senator Taft, Republican, of Ohio, avowed seeker after the nomination nomina-tion foi "resident, and Senator Adams of Colorado, a Democratic member of the senate committee on appropriations, and therefore influential influ-ential in policy-making, seem to be agreed that spending has got out of hand. They are proposing something some-thing in the way of a policing of government operations, and obviously obvious-ly such policing will be done by an agency of congress. Secretary Morgenthau of the treasury treas-ury has been going to some lengths to have the country know there will be no violation of the present national nation-al debt limit. It is now fixed by law at $45,000,000,000. The national debt is approaching $42,000,000,000, in direct obligations of the federal government as distinguished from the four or five billions of debt Incurred In-curred by federally owned corporations. corpora-tions. Many persons feel this debt must be considered as a part of the public debt. Anyway, Mr. Morgenthau Mor-genthau says there is no real reason to believe the $45,000,000,000 limitation limita-tion will be reached before next June 30, the end of the fiscal year. President Roosevelt has sent around word to the various departments depart-ments that their spending in the next fiscal year must be curtailed to some extent. He did not mention a balanced budget which he said a few years ago should be accomplished accom-plished In 1940, but he took the position posi-tion that the deficit in the next fiscal year should not exceed $2,000,000,-000. $2,000,000,-000. That is, the spending for all purposes, under the President's present conclusions, shall not exceed ex-ceed recipts from taxes and other general revenue by more than $2,000,000,000. Secret Memorandum Calls For Additional Spending While the statements from the senators were being chewed over and while the word about Mr. Roosevelt's Roose-velt's determination was sinking in, it was disclosed that a memorandum memoran-dum about future government spending was going the rounds among the so-called New Deal thinkers. The authorship of the memorandum has not been made known. None will admit where it came from or where it is going beyond be-yond the fact that it was being circulated cir-culated for the information of those high in administration circles who desire that thought shall be given to next year's political campaign. Stripped of all of its excess language, lan-guage, the secret memorandum points out a program for "rebuilding "rebuild-ing America," for building up America. Amer-ica. Incidentally, and only casually, casual-ly, readers of the memorandum are told through its entire length that there must be additional federal spending in execution of this program. pro-gram. But haste is made to assure us that there should be no worry about additional spending amount not named because the borrowings can be paid back "out of increased income of our citizens." And the war figures in it, too. The author of the memorandum observes that America "may be the last remnant rem-nant of civilization." It has a special spe-cial duty to all of the world, therefore, there-fore, and the thinking element wants to make sure that our nation is ready to assume this new burden. There are many paragraphs of argument argu-ment in the secret memorandum in support of the position that our nation na-tion must be "restored" and those who put it together reluctantly admit ad-mit that it will take a great educational educa-tional campaign to accomplish the rebuilding. What better opportunity can be afforded, then, according to the memorandum, than the election campaign of 1940. So, in case you are still ignorant; in case you do not realize the leadership the United States must accept; you may be fully educated next year by speeches and propaganda. This certainly will make you understand how important it is to spend more money out of , the federal treasury. Tighter Hand on Government Spending to Be Laid Down There can be no doubt that relief spending will have to be large again in the next year. It cannot be avoided. avoid-ed. Business is not doing any better. bet-ter. It is not employing more people, peo-ple, or to state it another way; unemployment un-employment is just as great as ever, and people must be fed. Mr. Roosevelt has indicated that while spending for relief cannot be dodged, there are other phases of governmental activity that may be curtailed. As to this, however, one might ask a pertinent question. It will be recalled that the President anticipated a reduction, a saving, of $15,000,000 or $20,000,000 would result re-sult from the government reorganization. reorgani-zation. The civil service commission commis-sion and treasury figures, lately made public, show that there has been an increase of approximately $100,000,000 for general expenses since reorganization was ordered. It seems in order then to ask how there can be curtailment, except and unless there is a willingness to abandon some of the numerous agencies of government along with the functions they perform. It is in line with the idea of curtailing cur-tailing expenditures, however, that Senators Taft and Adams spoke. They mentioned profligate and unwise un-wise spending. The old leaf raking I jobs that former Relief Administrator Administra-tor Hopkins sponsored, I believe, can be cited as an example. The blasts by Senators Taft and Adams, along with the constant criticism of waste by Senator Harry Byrd, the Virginia Democrat, must be accepted as portending a change. It seems to me to be a very important im-portant sign, and a healthy one. When members of congress get up in arms sufficiently, they naturally take quite a following of public support sup-port with them. My own hunch is that in the observations of Senators Taft and Adams there lies the germ of a great governmental reform. It may not come in the next session of congress, nor even in that which convenes in 1940, but I am quite convinced con-vinced that a tighter hand on government gov-ernment spending is going to be laid down by congress. Describes How Government Appropriations Are Made To make the circumstance clear, it probably is well to describe how appropriations are made. The national na-tional budget, of course, is framed by the budget director under the direct supervision of the President. The budget director gives each agency a chance to submit estimates esti-mates on the amount of money its officials think it needs. They are given the opportunity in hearings to justify their figures. The budget director di-rector considers their arguments and adjusts the amounts on the basis that he believes is proper and for the good of the nation. The budget eventually is submitted submit-ted to congress. There, the appropriations appro-priations committees go to work. They examine all of the estimates for expenditures and eventually call in officials of every agency seeking an appropriation and listen to the story about the programs and the funds needed. The committee then makes up its own mind, and its figures fig-ures are laid before the house and the senate. That seems a very fair way. Experience, Ex-perience, however, indicates there are better methods. The reason the system fails is because of bureaucracy. bureau-cracy. Every government official and every agency wants to expand operations, power and influence. Thus, when Senators Taft and Adams propose policing federal expenditures, ex-penditures, they have started something some-thing that may eventually result in development of a new arm of the congress. Adroit in Building Up Sentiment With Money Most observers here have long known that the new crop of spenders that now occupies the key positions have taught the old timers something some-thing fresh in the way of gaining congressional approval of appropriations. appropri-ations. They are adroit in building up sentiment back home when it comes to teasing people into line. But they are adroit only when they can use money. It has been plain that ordinary political methods can not be used successfully by the so-called so-called inner circle of the government. govern-ment. And for the reason that they can not use time tried methods not being politicians who have hustled hus-tled for votes they are doomed to fa ilure. The surprising thing about the whole situation is that President Roosevelt has been convinced so many times. The President is a right clever politician. He has flopped several times very badly, but he will get along in most any political company, especially if he has the aid of Jim Farley. The fly in his ointment is that he has turned all too frequently to the inner circle of advisors and has ignored Farley and the others, such as Farley's former for-mer trust advisor, Emil Hurja. The inner circle does not like Mr. Hurja, and it is their loss. Now. that the flurry about the United States getting into Europe's war has blown over. I believe it is the consensus that the inner circle group have turned again to a variation varia-tion of pump priming and "spending our way out of the depression" to the cultural field. |