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Show i r } National Debt Reaches Record Hiffh High . Kt KtHEIw [ By WILLIAM C UTLEYT UTLEY UTLEYlImn UTLEYKt MICin lImn HEIw ; wis W'lS WlS was ' i 'I ' time \ when hen theUnlh.d theUnlt the | Unlt United Unlh.d Unlhd + . d State States & li h id td a nationnl national nationnldebt nationaldebt nationalI debt of only $17- $17 17 $171505 $ J7115 i7 - 115 1505 05 But Butth'1t Butdrat Butr tint th'1t th1t drat ' w \ vvis \ 1S is ' exactly 100 vears vearsoIn " , vcarso ears earsoln ; o-ln o ln o-In In - - In 1S3G 1830 133G And for each ofose of ; ose se 100 yelrs ye'lrs years ' the debt lias has multi multiJIed ruultlled JIed , 1ed almost 10000 timesThe times timesThe The Thc United States Stlltes begin beg'ln begln ' exist existce existce ce ce1th \ with \\1th 1th tlie the stag staggering erlng ( for thosg those thosgmes tliosslies imes thoseimes mes ) [ mtlonal 1'ltlonal 1ltlonal national ' debt of 5751131000 5751131000hat ' 575 j5 1G3 1G.J 1GJ . 000 000Ilhat 000jhat Ilhat hat s " wis 'IS IS 'ts ts ' ' to pay for the ne\ ne Res neolu Rcvoluunary \ olu olubn3'ry olunaly bn3'ry bn3ry naly ' war , and find up to the plesent present plesentky presentEy piesentty ky Ey greit gre'lt grelt ' rises In the natlomi nutlol1'll nutlol1ll national ' debt debtr debtve debtI debtve debtive r I ve been heen the result ofars of \ wars \\ars ars ( ' ic 'lC lC ic icpting 'Vtfng Vtfng ' pting the t11e theory of one school of ofought ofought ofought , ( ought , , " which "hlch hlch I icgards regards e rds the spendthat spend spende e that caused the present enor enorous enoreus eus ous total as necessitated necessltatl'd necessltatld ' by a de dercson de"csiJon decsiJon rcson " ession : , [ \ which hlch was the direct re- re ret re- re reIt re-It re It - - - It t of tlie the World w'lr wlr svir wirThe ' ) he heVir \ Wir W'lr Wlr \Vir Vir ' of 1812 1512 sent the debt up upL$1734.93374 up$127.334,933 up127.334933 up127334933 L$1734.93374 L1734.93374 L173493374 $127.334,93374 127.33493374 12733493374 $ . . , . , 74 [ In n 181G 1810 1510 In 1800 15130 1SCGe 1800e 15130e I Idebt e debt reiched re'lched relched retched ' a new high of $2 2 $2,6000000 26000000 $ , 6 000 000 . , following followG follo\\ follo folios \ wG in , ; the Civ Ch Cis 11 wart war t ' 1915 1015 It stood at The the he comfoi comfoltnble comtottable comfoltnbleItal comtottableital tableital Ital of $1,100000 1100000 $1,100000000 1100000000 $1,190000000 1190000000 $ , , 000 , , but the theorId theorld theorld { [ orId orld " war "ar ar ssar sk3tocheted sl sk iocketed locheted it to the thenrmlng therming thearming nrmlng rming total of $2GOT4000000iur 2GOT4000000iur $30,94000000oar $20 20 $30,94000000 3094000000 $ ; , ! H 000 000 oar r J ; , cais eats eal s liter l'lter llter titer ' By conscientious conscientiousadgetbahn conscientiousIdget adgetbahn dget balancing balfllJCJng ung during the ne'tt nett newt ne ' t k Hi to l balancln balancing . ; of the budget butlet . ; has hascOlllphc'lter1 hascutnplte hasi cutnplte coinplicitcd cOlllphc'lter1 cOlllphclter1 ' ' ted lu In recent reclnt years he yearshe 0\ 0 over 0'r oser \ 'r r ( ' optimistic npthnlstic cinracter ch'lructer chlructer cliiructer ' : of oftl ofill I aI 11 tl IJ\III IJ III budget \ et deficit dehclt dehelt estimates a as a revealsf follo\\ follo following folloIng follnsinb follnsinbg \ Ing g tible t'lule tlule table ' revealsThe reveals revealr ; Thethree Thethree Tlie The Tliethree f three deficit del1clt estimates e , > Umd tes "ere ere were "ereIr wereIr " wereMr I Ir Hoover . All are given g1\en g1 en glen \ In InIons inions InIons I Ions of dollars : t Predicted Prcdlct A d Actual it Actualtl-1922 Actualtl 1922 ActualtIII Actualit t-III t III tIII11 153Z l-ls l ls - - 2 ! . . . . . . . . . -11 11 - II 31 ' 3 1 ; iss 153 12 Z 2 U33 IJ33 . . . . . . .1738 1738 .I I . 73S 3 UG33IJ34 UG33.1J34 UC3 UG3 UC3(3U34 (3-U34 (3 3 U34 3-IJ34 IJ34 3.1J34 31J34 ( - . - . . . . . . . . S41 841 330 39'39 3939 3989 ' 4 . I'J-15 I'J IJ 15 H'JS HJS 1995 ' ' ' - . , . . . , . . . .2 2 .2512 2512 . 512 3515 3 575 15-1936 15 1936 5-1936 5 - - . . . . . . .52 52 4 < . S2S 528 & "lne lne " ' * 1,986 1986 1,986Surplus l.3 l3 . , 8 8tSurplu tSurplu ; Surplus "As As " As A of or Jan 17 17,1336 171336 17I:13G 17I13G 17,1336iat , , 1936 1936at : iat at estimates estimate ' ) were so 60 far awaythe away . the . actual .lclual lclual totals trtals ) may la in mo mosti mobt most t i ( cases cn"es cnes " be laid to the totil tot'll totll ' Inabilityof Inability of tlie the Treason Tretl"un Tretlun Treasury " department , the thebanl.s thebanks thebanks banl.s banls banks . and the people In general glncrnl ginernl to toesthnatc toestimate toestimate esthnatc estimate tlie the duntion dur'ltlOn durltlOn duration ' of the depres depresslon depresslon depresslon . slon When Incomes slumped , so sodid sodid did revenues . And .And \ when hen the 'priming priming ' primlog prim primJng Jng log ' failed to get the pump wortk wortking \ workIng orl . Ing as quickly ' is 'lS lS as hid h'ld hld lrad ' been pre pre- predIcted pre- pre predicted predicted - - dicted , . ta ta\ ta tai tarevenues \ . re\ re reen revenues \ en ues failed falled to gro\\ gro grow growto groto growto \ \ to expected pected proportions Fiom rlom rrom WallStreet Wall WallStreet WallStreet Street money mirts m'lrts mlrts marts ' have rumbled rumbledaccus'ltlons rumbledaccusitlons rumbledaccusitlons accus'ltlons accusltlons accusitlons ' of dellbeiate dellbelate dellbetate o\crstate o crstate oserstate ocrstatement oserstatemeat overstatemcnt \ ment meat In the more recent budget budgE > t cs es cstlmates estimates cstiroates tlmates timates In Tanuary January , 1934 1034 , Presl Presldent Presldent President dent Roosevelt noo"evclt nooevclt " estimated that the thedeficit thedeficit thedeficit deficit six : months later would "ould ould " be be$6044000000 be6044000000 $0644 0644 $0644000000 0644000000 $ 000 000 ; It turned out to be be$2 be2 $2 2 $2530000000 2530000000 $ 836 S3G 000 000 An estimated $3,100- $3,100 3100 $3,109 3109 $3,100000 ? $ 3,1C9-000000 3,1C9 31C9 000000 , , ; . , - 000 000000 000 for the first half halt of 1D35 1035 1D35proyed 1035proved 1935proved proyed proved to be an actual $1 1 $1875 1875 $ 8J ; 000- 000 000000 000000 000-000 000 . , - 000 Wall Street sa3s sa s the treas treasury treasury treasury ury Is too smirt sm'lrt smlrt smart ' to make mahe such mls mis mlstahes mistakes mistakes tahes takes un\\ un unwittingly unIttlngly \ \ Ittlngly . , The Real National Debt Debtroi . . I rOI rot other rcisons re'lsons relsons re'tsons retsons ' ' it Is ls dillicult dllllCUlt dttllcult to toestimate toestimate toestimate toI I estimate the reil re'll rell re'tl retl ' ' national debt The Tlie Thegross Tliegross Thegross ' gross debt of more thin th'ln thln ' $30000 30000 $30000,000000 30000000000 $ , . 000 000 at the end of 1935 1035 actual1y actually actual1yrepresented actuallyrepresented actuallyrepresented represented the proceeds of ot Decem December December Decemher ber borro borrowing " Ing added to the elS ewrs elSIng ewrslag exisng " { Ing lag ! debt . . But though the monej money mone L " { ! . ) ( . . .rJ rJ . " ' " ' - " " ' : . "fI\ "fI fI "fIQ ; " \ ! _ Q 0 0E S E t o 0 ou u 0 .5) .5 5 . E 0E ) ( < \ , 51 51s . 1 ct ) d CI ) d dU s 1- 1 - 1C C ) C ) u 1x X ) ( x Xrn C/ C rn / ) COS rnR R OS OSca o ! ca 0 R RbD bJ bD ) CO I- I - Ir lr lrC r- r - r.E .E E . C "C C " p 8 V 8C VH C/ C H / ) Cc C ) N 3 3t c t : > c = d b by btQ . - C/ C y / ) Co - o _ tQ tQr r - 49 K ) ( 49K d Vd C ) ct tit ) Cf ) Xd - > u V Vtit ) ( C/ C to / ) CC X > < C ! : g I- I - IQ t ' > : Q d lit . C t : o : = . : ' d ( \ ) 0 X > < . 0 I- I - 1 ' m Im E : 'a a ' > : . bJ ba ) c - - , to toQc do Qc o . 0 N NC NNc : ; u - - ' a : J . 0 C N Nc NcV .2 2 . V . ! = f0 0 2V L 2 . ! (3 3 ( (3c , Ne e V 3 - c , Q E- E - Eg , ( \ ) . . O 0 g O ' - t8O V "C C " 0 - . U t8 t8V cCo 0 0 0y 0m g c cV ca ca . : y m Co V ) c a Co ) ' - c a . - 8 8.g E : -.g .g . : - - EI . ' - I- I h - = c cro I'V < . 'V V M ( ' ) . ro + - N Nr r- r - rWHERE N Nd d ' p W . Wt0 t0 00 m mi M mM i 6 WHERE THE GOVERNMENT'S GOVERNMENTS ' DOLLAR COMES FROM Recent Recenturt Recenturt urt decIsions would cancel the column labeled "Processing Processing " Taxes " and andese andese ese taxes will have to be returned by the government Both the charts chartsI I this page are based on 1935 1936 budget estimates ride r de the debt reached reacbed Its postir post postIr posttr Ir tr low of $10200000 10200000 $16200000000 16200000000 $1G 1G $ 200 000 000 OuO in 1JO 1930 1JOVIH.n 1930When ! 1930When ) \VIH.n VIH.n When \ . President 1:001\ 1:001 1001 : Roosevelt 1:001elt : ( . \ elt dellv deliv dellved delived dcllved ed ed his budget budet . ; messige mess'lge messlge message ' to congress congressirJinnir3 congressi I irJinnir3 J'1nn'1rJ J1nn1rJ Jininr ' ' G , the n'1tlOn n1tlOn ninon mtionil ' 11 d debt w \ VMSgher 1S as asgher ' gher ; : her thin th'ln thln ' It had e\ e ever eer eser \ er been heen be bere bere bere re It w \ vvis 1S is ' \ well sell ell over $10 10 $300000000 300000000 $ ' 30000000 000 000 000O O 0 . , He Be tie predicted that on June JO 30 3037 87 $7 7 $ . , at the end of the 1936'37 193637 193G 1D3G ' ' 37 fis fisl Osricar 1ear l ' , ear . , It [ t would be 31351000 531351000 ' 1 & : > 1 000 9 , or moie mote mOl e than $1 1 $1000 1000 $ 000 for eery every everymils e\ e everymilv \ ery erymIJ mils mIJ in the hnd.J'h landL'he lind hnd land lindThe .J'h .Jh Jh . The L'he Lhe ' present record nitlom n'1t1oJl'l1 n1t1oJll1 nitlonil ' ' ! debt debttJle debtthe debtthe tJle the direct icsult result of tlie the nrlmlnls- nrlmlnls ndminls- ndminls ndminlsatlon's nrlmlnlsIIllon's ndrnlnls-fitlon's ndrnlnls fitlon's fitlons - - IIllon's IIllons atlon's atlons ' ' policy of ' , .pllDung pllDung jniming . liming thE theimp theimp > Imp effectingteco ' to aid business In effecting effectingrecovery effectingycovcry teco\ teco tecoery recovery \ ery from the throes of de desslon desslon sslon It is not as large ' asssldent as assident - shient sident Roosevelt Hooseelt Itooseselt Hoose\ Hoose \ elt had predicted predictedou1 predictedould predictedvould ou1 ould ! be sli siw sl " months ' igo 1go ago T\\o T o Two Tors Twors Twors \ , rs ago he said .lld lld . "The The " debt would wouldQunt \ wouldpunt ould ouldQuot Quot Qunt to $31 31 $ $31834000000 31834000000 $ 834000000 834 000 000 on June JuneH'J June1935 H'J HJ 1035 ' " ut the Picsldent PlesirJpnt President also said then thenus , I rs ' : ; ( flist fhst list nnninl nnnu'li nnnuli annual ' bud budget et mes message messageongress messageonoress < ) age ageonress ; ? onress ongress . ; "Ms Ms " * Mv 1\ 1 \ 1estimates estimates for the theing theling . In ing . ; fiscal fi"cal fical " ycir ye'lr yelr year ' ( endln ending June 30 305) 305 I 5) 5 ) shoan show sho\\ sho \ \ an excess ( of If e\pendl e pendl espendl expendlis ependls espendls ' \ , . * s 0\ 0 OS over 0er \ er receipts recelItg ) of $2000000Ve $2000000 2000000 $ , , \ We \Ve Ve should [ plan Ilan to have a anlt anltcly anitcly nltcly nlt .1y 1y < . balinced IJlhnced balanced : bud budget et for the thed thed thed d J ; yetr e cir lr of reco\ reco recovery recoery \ ery ( the pr present & ent ent"I (1 1 ( " pre&entil preentil "I I year ) and from that time on ona ona onc a continuing contlnnlng reduction of the theoval the.onal theonal . 01\11 01 11 oval \ . ' debt " " . Balance Not In Sight Sight.jet Sightjet , . t su such .h h < . a balince balmce baltnee has h3S not been beencted beeneted beencted cted eted or e\ e e5 even een \ en forecast for the thefiscal thefiscal theT " liscal fiscal iear year ear He Ill lie ' estimated estknated that thatth'lt thatthat thatthit th'lt thlt that ' icar sear ear the governmentould government wouldect \\ould ould would \ wouldect \ ouldect ect $5051000000 5051000000 $ ; : OJ 031000 J 000 000 In revenues , . 1 , . 1would would spend SG,7 SG7 G G.T GT . , 'i2 i2 52 ' 000 OQO 000- 000 000a 000a 000 - - | a sum for work worI relief still stll1 todetermined to todetermined todetermined [ determined . . . The delicit detic1t deficit then thenId thenId thenId Id have been at nt least $1005- $1005 1005 $100510 $1 1 $ OJ3- OJ3 OJ3JO OJS OJSXJO -XJO XJO - JO 10 plus pills pins whatever whntc\er whntc er whateser \ amount had hade > e ad added ed for relief rllIef UnfortuIy Unfortuly Unfortu Unfortuly ly Iy there were Immediate pend peed pendIssues peedissues pendIssues Issues which would throw the theIl1ent's theident's theildent's theildents Il1ent's Il1ents ident's idents ' ' estlmite estlm'lte estlmlte ' out of \ whackthe hack shack shackhe \ hackhe he very dn do dai ) of his message the thereme thereme reme court declared eclared tlie the AAAlid AAA AAAtld AAAlid tld lid . , . and a later rulln ruling decrecd decreed decrecdthe decreedthe decreedi . the government gO\'Lrnment gO 'Lrnment Lrnment \ ' would h hive lye the tc to . ? back bach the proces processing lng taics ta'tCs tatCs tones ' . . , Ilas 11 Il it was \\as as 'as \ ' \ virtually Irtu'llly Irtullly sirtually \ ' certain that thatt2 thaiS2 ; t2 52000,000000 52000000000 000,000000 000000000 000.000 000000 , . 000 soldiers ' ' bonus bonusd bonusId situatlor1 d pass puss con congress ress Tlie The situation serious serlollS enough for Secretary Secretirile Secretarye ecret'1ry ecret1ry ecret'1rye ' e Treasure Treasurj Treasury Morgcnthau Morgenthau to pro.that prothat lire- lire pre- pre lirethat prethat - - . that the country might face a aonal aanal tpnal onal anal debt of or $ , $ W .lo lo . J ; : 'iQI iQI coi ' > 0i)000000 0i000000 ) 000 QUO 000 b by byend } 'end end ' end Of the 1037 fiscal scar , .ar ar < . had been honowed hortoned borl 0\0 0 \ ' ed It had not yetbeen yet yetbeen yetbeen been spent With ll'ith llith ' the sum thus held heldIn heldIn heldIn In thebene1'l1 theaenetil tlie the oCnenl bene1'l1 bene1l1 aenetil ' fund deducted the thedebt thedebt thedebt debt In jn ( n December was " ictually "lctually lctually actually only onlya a little over 0er oser 0\ 0 \ er $23000000 23000000 $28000000000 28000000000 $25000000000 25000000000 $28000000000But $25000000000But $ 000 000But But tlieie thele thete are also comphcatlons complications complicationsnot comphcatlonsnot not so rosIn rosv ros\ ros ross \ in nature During the thelast thelast thelast last half do/en do en d07en doyen / years the gO\ gO gOel gosetn gosetnment goveinment \ el n nment ment has einlnrkcd emb1rl.ed emb1rled embgrked . on some ex extriordinary estnordinary : tr'lordlnary trlordlnary triordinary ' financialentmes financial \ ventuies \entmes entmes sentures l\Ian l Ian Many Manycritics \ Maiiicritics crItIcs of the gO\ gO government gOernment \ ernment financial financialpolicy flnanciilpolicy nancl'11 nancl11 nancl'11policy ' 000,000 000000 policy would add to tlie the 30000000 $30000000 $30 30 $ ' 000 , 000 debt the contingent contlnent " , liabilities liabilitiestal liabilitiestaken liabilitiestaken tal taken en on bthe bv b\ b bs \ the treasury lIo\\ lIo Iiow Iiowthe lIothe Howthe \ the Treisury Tre'lsury Trelsury Treasury ' dep'll depll depntments departments ' tment s finan financlal financfal financlal clal cfal \ ventures entures sentures ' stood 5tood on October 31 31.1935 311935 . , 1935 followingCombined ingCombined , Is ' ) shown hown In the follo\\ follo folloing following \ ing Combined Statement of Assetsand Assets Assetsand Assetsand and Liabilities of GO\ GO GOcrnmental Gosernmental GosernmentalCorporations GovernmentalCorpontioni \ crnmental crnmentalCorpor'ltlon Corpor'ltlon Corporltlon Corporations ' , and Credit Agencies Agenciesof of the United Stitcs St'ltes Stltes Stites ' " Figuics rlgUleS rigutes are areIn arein areIn In millions ml1l1ons of dollars : AssetsRecon As- As AsLla AsLia As - LIaEqulb LlaEqul LiaEqul LIa- LIa Lla- Lla - - Equl- Equl Equlcets Equlsets |