| Show American and Soviet Finances By Frederic J. J Haskin WASHINGTON D. D C. C C. Whether Whether the United States government shall go Into production and possibly trade by means of ot using the 4 4 1 relief and works works appropriations Is one of the questions now before the administration The relief relic population of ot the country now Is placed at or more than sixth one of the entire population of the nation A part of ot the relief relief re re- re- re lief hot is direct which means straight contributions of ot the dole type for lor which the beneficiary gives no re re- re- re turn A part is w work rk relief relic whereby whereby where where- by a small wage is paid for services servi i ices rendered I It is a vital vitt question as to whether er er in the expenditure o of these additional additional ad ad- billions the emphasis shall stull be placed upon direct or upon work relief relIct Representatives of the labor clement of ot the country notably the American Federation of Labor maintain that work relief should be the rule Moreover they maintain main main- tam tain fair living wages should be paid On the other hand representatives representatives representatives of employers object to large scale work relief relict on the ground this will mean the entrance of ot the government into productive competition with private producers and traders The question is probably probe ably as fundamental as any that ever faced the nation A Typical Case Representatives of the workers say that the dole and even some of the work relief given at the wages paid mean no more than a Q sort of or slow starvation Moreover the dole or direct relief relict bereaves the recipient recipient ent of self respect and tends to tomake tomake tomake make more and more of the people permanently indigent and dependent depend depend- ent Work provided by the government government gov gov- at fair living wages would obviate this development A number o of times it has been proposed by government officials that productive enterprises be started started started start start- ed as relief measures For example example exam exam- pIe when it was necessary to slaughter slaught large numbers of cattle in the 1934 1 drought the federal surplus surplus surplus sur sur- sur- sur plus relief administration was prepared prepared prepared pre pre- pared to take the hundreds of thousands thousands thousands thou thou- sands o of hides available tan them In government tanneries and then manufacture shoes in government factories This would have utilized the hides and ond given employment to thousands The plan was effectually effectually effectually ef ef- ef- ef blocked by private business business busi busi- business ness interests That is a typical example example ex ex- ample of oC how this issue is joined New Applicants for Relief Yet a major difficulty looms Studies of ot relief administration statistics statistics sta sta- sta- sta reveal that more people arc are applying for relief all the time and that there is likely to be a progressive progressive progressive pro pro- rise in the numbers For example studies covering only half hall halfa halla a dozen cities show that many of or these new applicants ranging rangin from rom 28 per cent in Detroit Detro t to 59 per percent percent percent cent in Omaha have applied for relief re rc- re- re lief Ile for the first time In all all there have been cases of ot first- first time applicants ince since last July The meaning of or this is that families which have hove been able to subsist from om savings and makeshift employment employment employment em em- have for the first time come to the end o of their resources How long this trend will continue cannot be guessed The question raised Is whether the government can continue a polIcy policy pol pol- icy of ot paying out a dole and giving giving ing meager wages for noncom noncompetitive ti tive work indefinitely or whether It must get gel something In return It Itis Itis is true that some values have been Increased Roads have been improved improved unproved im im- un- un proved by relief relict labor and the civilian conservation corps has reputedly reputedly re re- re created potential values by preventing forest orest fires on the public public pub pub- lic domain But all this produces no revenue Government Costs Rising In the next few weeks weekS weekS-r or It may be longer some longer some definite decision decision de de- de- de must be reached on this matter matter matter mat mat- ter of at vital policy for the costs of ot government are rising steadily and with so many newcomers applying for tor relief bid fair air to continue to Increase The federal government and the slates states are arc bonding them them- selves more and more heavily to meet the cost and taxes must in inevitably inevitably in in- rise for tor everything Is outgo It is by no means certain that the Russian experience will have a marked influence on the decision but it can be asserted that it Is being studied by some of those who presumably will have some voice in deciding whether the government gov gov- shall go into production and trade as a means of getting some return for tor its us vast outlays In this connection the bud budget et of ot the soviet union Is is' b being studied with m more re than idle curiosity Not even the United States has increased its budget with the rapidity rapidity rapid rapid- ity that the soviet union has done In 1929 the thc last year before the depression the American expenditures expenditures expendi expendi- expenditures tures were a little over over In 1934 they had Increased to a little over or practically doubled Many 1 AmerIcan American American Amer Amer- ican taxpayers were aghast at this tremendous increase e involving ng the building up of ot the largest national debt the na nation had ever known The Russian Picture But In contrast the Russian budget rose from in 1929 to in 1934 a fourfold increase To be sure the Russian figures Include the constituent republics but even if there be added about for tor forthe forthe the American state municipal and local costs for tor 1029 1929 and nearly for 1934 to effect a amore amore amore more exact comparison it will be seen that both the rate of advance and the amounts involved in Russia Russia Russia Rus Rus- sia arc are far greater Russia is a poor country compared com corn pared with th the United States bothin both bothin in the aggregate and per capita It has hM some people compared with here The standard of living is not more than 20 to 25 per cent of what the standard is in this country That the soviet t union could raise such a vast sum is due to the fact that it has adopted the course now under co consideration here in connection connection connection con con- with expenditure of or the relief relief relief re re- re- re lief funds That is Russia as a government has gone one into production production production tion and trade the great business organization of the soviet union increased its income six times in the period from 1929 to 1934 1 The figure for 1929 is not reported but In 1931 produced produced produced pro pro- 78 9 per cent of all aU the budget bud budget get Jet while in 1934 this percentage had risen to 84 In the same period the percentages of ot the total revenue realized from taxes and loans loons declined from rom to In other words in the period period pe pe- pe- pe nod when American taxes and loans were rising soviet taxes and loans were declining and yet the total revenues available more than quadrupled Russian Sales Sale Tax Russia has a sales tax which has been highly highl successful stul Revenues derived sprang from front in 1031 1931 to in 1934 All this was accomplished without inflation for in the period 1929 to 1934 the circulation declined by Meantime the number number num nuni ber of ot Russian bondholders increased increased increased in in- creased from in 1931 to in 1934 and savings from in 1931 to in 1934 The current year calls calIs for a 3 still higher exp expenditure but the indications indications indi indi- are arc that the revenue will willbe willbe willI I be be forthcoming and w with th declining tax taxes s and loans because the business business busi busi- business ness of steadily grows The American people are extremely extremely ex ex- unlikely to turn to the Russian Russian Russian Rus Rus- sian system in Its entirety at anytime ony any time in the near future but the Russian experience su suggests how expenses can be met if the state takes a hand in production production pro pro- production and trade And meantime meantime meantime mean mean- time the Russian budget is bal hal There arc are however probably probably probably ably more than people who would rather live li in America under an unbalanced budget than thanin thanin thanin in Russia Ru with a treasury surplus |
