OCR Text |
Show Economic Highlights ' Industrial News Review Happenings that Affect the Dinner Pnils, Dividend Checks and Tax Bills of Every Individual. National Nation-al and International Problems Inseparable In-separable from Local Welfare. oOo In the eyes of industry, the federal deficit looms large. Business men, in company with investors, property owners and other taxpayers, have watched the government charge present pres-ent activities against future income and are wondering how long it will be before the paying-off is reflected in exorbitant, perhaps confiscatory taxes. In the eyes of the politicians, the deficit also occupies a large part of the landscape. During the political war that will be fought next year, the deficit will be an outstanding issue. is-sue. Republicans will claim that the Roosevelt administration is imperil-- imperil-- ing the country's credit, is running us into bankruptcy at express train speed. Administrat'on spokesmen will pooh-pooh that, and answer that vast expenditures were essential to fight- ing depression and that the country's credit is easily able to stand the bill. Irrespective of which side is right, federal finance presents a depressing picture, and has done so ever since 1930, when the last surplus was recorded re-corded on the treasury's ledgers. That year's surplus amounted to $738,000,-000, $738,000,-000, and in the ten preceding years the government's receipts - had exceeded ex-ceeded expenses by the handsome sum of $10,000,000,000. In 1931, the red ink period began, when the federal fed-eral government spent $403,000,000 more than it received. Then, :n 1932, the era of really large deficits set in, with a total of $2,741,000,000. For the next two years the deficits were $2,607,000,000 -and $3,606,000,000, respectively. And for the fiscal year which ended on June 30, 1935, it is estimated that the deficit came to $3,005,000,000. It is a notable fact, according to the U. S. News, that the 1931 and 1932 deficits were not due to greatly enlarged spending, but t6 a falling off in revenue. Since then, taxes have been raised and revenues increased, but spending has gained (Continued on last page) Economic Highlights .'on: iau.-d from puse 1) i-.i a :w..-h faster rate. For example, il:r rt a: i Jid::ect doles fur unemployed unem-ployed ac.-outiti-il for the spending: of i.mii) ; !,,. i;i;:5 r;s:-al period per-iod aloi!,-. At the start of ;:' I, the piesider.t said he expected that fed-cral fed-cral outgo would balance income bc-g'nnirg bc-g'nnirg with July 1. li'o". Xow, in the president's latest budget mts-sago, mts-sago, he forecast that the 198G defic't would K. 3 s;i2 000 000 the -largest in our history. Reason for that about-face, about-face, says Mr. Roosevelt, is the unlooked-for persistence of depression, coupled with the fact that only the federal government seems capable of providing relief for the needy. Some business men answ" that by saying that one major cause of this persistence persis-tence has been the vast 'ncrease in g-overmental expenditure and legislative legisla-tive interference with business that we are pursuing a vicious circle which can end only in national insolvency. in-solvency. Th!s view is, of course, held to be false by administration economists. econo-mists. At any rate, more money is being spent than is being collected. It is forecast that next year the American Am-erican people will be deluged with more and bigger figures than they ever heard before, dur'ng the conduct con-duct of the national election. The people peo-ple will be confused by so-called experts ex-perts contradicting each other. The solution to the deficit problem will not be solved by political speeches from either side. But until 't's solved, American business will remain unconvinced un-convinced that natural, sound recovery re-covery can be achieved. oOo Business is holding steadily to a level that is somewhat 'below that of a year ago. Fall buy'ng is down, due principally to the hope of large purchasers pur-chasers that prices are about to break now that the codes are out. July may witness a rise in the general business index that will bring it up with last year, according to some experts. Power Pow-er production has not gone into its usual seasonal decline. This unlooked-for unlooked-for strength has resulted not from increased domestic usage, but from large commercial users. Commercial private construction is also at a relatively rela-tively high level, and is far ahead of last year. During May, Bus-'ness Week says, machine-tool business hit a five-year high. The motor industry is said to be looking forward with confidence to a heavy demand next year. Steel demand is fair, and prices are reasonably firm. Export business is well above last year, which, in turn, registered a large advance over 1933, when foreign trade was almost at a standstill. The farm outlook is changing, and surpluses are taking the place of shortages. The department depart-ment of agriculture forecasts a 670,-000 670,-000 000-bushel wheat crop 70,000,-000 70,000,-000 more bushels than is needed for domestic consumption. Fruit and vegetables are unusually abundant, with lower prices resulting. Only important im-portant agricultural shortage will be meat, which will be comparatively scarce, and so will continue to de-, de-, mand h'gh prices. The cotton situation situa-tion seems to get progressively worse. Only way out, says Henry Wallace, lies in increasing cotton sales abroad which can be done only if foreign countries can sell more goods in this country. |