Show UNCLE SAM SAM GREG CHECKS KS HIS BOOKS I IEn En End of Fiscal Year Finds Government Costs Still Mounting l Balance of Budget Not Yet in Sight Treasury Reports t By CARLTON WILLIAMS TilE THE pHE fiscal year 1936 is now ended and and nd the United States J- J governments government's financial operations broke at least three records rec rec- records records which if Secretary of the Treasury Morg s reckoning holds true will be broken again in the 1937 fiscal year which comes to a close next June 30 During the last 12 months the government spent more money than it ever had in any peacetime fiscal year The total was approximately 8 billion million dollars The deficit was also the largest ever compiled by the United States government in times of peace It was about 4 billion million dollars It would have been only about 2 billion million had it not been for the passing of the tho veterans' veterans bonus Federal expenditures emergency end and nd regular advanced the public debt durin during the fiscal year to an time all record high of 34 billion bUllon million dollars on June 17 Between Ilen Be De tween then and June 30 it was sr r t d Comptroller General McCarl McCail Who Recently Resigned After 15 Years reduced to 33 billion b million m largely through the redemption of soldiers soldiers' bonus bonds Cites CUes Recoverable Assets Against this debt Secretary Mor Mor- pointed out must be held about 8 B 4 billions which the government government gov goy eminent holds In what he calls caUs recoverable recoverable re re- coverable assets Most of them to tobe tobe tobe be sure are recoverable but a certain tarn tain portion of them Including about 4 billions In loans to farmers railroads banks insurance companies companies compa compa- nies states and cities clUes are open to question it hardly seems possible that any organization could make loans so varied In nature and combining com corn bining to make so large a total could expect to collect them tilL all Other recoverable assets listed by the secretary are 2 billion million cash and money in the bank and 2 billion in the stabilization sta stabilization bil- bil fund This latter fund however however however how how- ever it would probably be unwise to touch touch cec because liS It w It-w was it-was established b for specific purposes principally principally prin prin- for stabilizing the dollar in foreign exchange markets n Resides what who Mr r. Morg apparently ap up considered d le legitimate tub sub tractions on from the public debt deb are about bou 4 t 4 billion billions in equally legitimate legitimate lesi mate additions to 10 the deb debt Th These e are ore government guaranties and obligations obligation f federally underwritten n corpora corporation on end nd the like It was apparent as the new fiscal year began that little or no progress progress ress In balancing the budget would be made Although revenues are due to continue Increasing as the COWl country try enjoys a continuation of the trend back toward prosperity and as the administrations administration's new revenue producing measures become become be be- come more effective expenditures are are also due for a rise some of at them expend expenditures I tures unforeseen by bythe the government a year or two ago Taxes and other revenues according according accord accord- ing to estimates will probably surpass surpass sur sur- pass those of any other year in 36 1935 37 1936 ACTUAL ESTIMATED f I fall 0 1111 f FI l In t 0 tl M M J. iti fir f. f i 1 I RELIEF 2 R ELI EF 1526 DEFICIT rj i lill 1 2862 ii BONUS 1713 OPERATING I 1048 l INCOME I NATIONAL TAXES OFFENSE j. i roes Ml i r W. W 7 INCOME TAXES TAXES' r PAYMENT km 1 DEFENSE i DEFENSE SK tao 90 DOm F FARM tv R RELIEF p F 1 1 eU 16 MISCELLANEOUS FARM RE RELIEF EF JOB 3 B 1 02 i MISCELLANEOUS t INTERNAL y v IURA si 11 R 1180 c. c P PUBLIC DEbT bY i 1010 SERVICE pu PUBLIC DEBT Ji 1440 W x 1153 t L E IAL rise r iW 5 0 t Tools I EXPENDITURES o l EXPENDITURES oo RECEIPTS Where l 1 the y- y yG G Goes es- es and Where It Comes From I tion corps is due to decline from million to million in the new fiscal year Farm relief costs too will probably be on the down swing Regular Costs Mount 1 In regular operating and adminIstrative administrative administrative admin admin- costs have the greatest rises been apparent The present administration it is estimated has added some federal full full- time employees in addition to the relief rolls Operating and administrative admin costs were million for forthe forthe forthe the 1935 fiscal year increased to million in the 1936 year and for the new one are expected to reach 1 billion 43 48 million Incorporated somewhere in the ex- ex ex- ex of this is the fact that the operations of many of the federal departments especially those dealing dealing deal deal- ing with public works were severely severely severe severe- ly Iy cut during the economy wave which followed the change of ad ad- 1936 1935 1936 1937 0 1 1 3 4 5 6 7 8 9 BILLIONS OF Or DOLLARS Emergency Expenditures Expenditure pen iture Regular Expenditures pen iture Three Years of Federal Spend Ing Does Not Include the Veterans Veterans' Veterans Veterans' Veter Vetere ans' ans Bonus history with the exception of 1920 An important phase of the new fic- fic c. c cal cat year will be the appearance for forthe forthe forthe the first time In the ledger of the new social locial security program The federal ledger in the new Racal fiscal year win will be Important historically his because of the changing nature of its Ita entries It will leethe see lee seethe seethe the Institution as II permanent expenditure ex of many of 01 the measures measures meas meas- ures urel which the administration adopted at first as al purely emergency emergency emer gency In character new how Spending HAS Ile Increased Before 1934 the largest expendi tares ture in peace tIme tune during durin a single lingle year ear had been 6 8 billion million During the 1834 1934 fiscal lisca year rear the government coy gov ov eminent found It necessary to lay lar layout layout out T 7 billion million dollars doUan the next year expenditures were re up million but during durin the 1936 c f fiscal year they went back to 7 I billion million if It the veterans' veterans bonus Is excluded as it fairly may maybe maybe be to make sure this report Is not biased politically In any way Certainly thinly enough It will have to be regarded regarded re reo re- re as part put of ot the public debt Many expenditures expenditure which in 1933 were t regarded d a at a. emergency have hale now PlOW been included in the he r regular government expenditure expenditures a as a. may mar be tern seen n in one of the charts chart shown hown h here ere re While there has 0 of 10 late Ie been a decline In emergency spending there h re has ha hasIn been In a corresponding increase in r regular expenditures Direct relief work relief and emergency public works expenditures expendi expendi- tures hires have decreased from 3 billion 59 million in 1935 to 2 billion million in the 1936 fiscal year Spending for the Civilian Conserva Conserva- ministration in hi 1933 but they are arenow arenow arenow now finding their ways back into the budget For instance e when President Rooie- Rooie veil tel frit firt came cam into inlo of i office e he effected immediate and uil drastic economics in II rh river river r nil end harbor end public building work They were re subsequently revived re- re e. e in II the rA emergency programs Now Mr Roosevelt has indicated hi his del desire re to 0 return them to 0 the th perne persa nent nen budget budet wi with en n annual appropriation of about million dollars JolI Taxes Tues Keep Beep Go Going Up Generally the twitch switch of public works programs back bade to the regu tar Jar budget combined with other transitions transition is I. regarded as the beginning be be- ginning of the attempt to make most of the New Deal a permanent perma perma- nent neat phase of 01 the government The President has asked for tor the institution matt of 01 the and the farm control program as II permanent I of his measures program Revenues have never failed tailed to Improve since 1932 They were 3 billion million dollars in the to 4 1935 fiscal year and Jumped billion million in the year Just closed Next year it is estimated they will reach 5 15 billion 1540 mil mil- lion This if It It proves true will mean the biggest tax bill since 1920 when revenues amounted to 6 billion million In the n new w fiscal year lIr it if is it estimated esti mated that hat income taxes ue will Hill provide more note r revenue than Ih they y have hare at any anytime anytime time lime since 1930 when hm ra rates were low lose but income incomes 1929 were fre at their hi highest The Revenue Act Ac of 1935 will be a fa factor lor in Ih the rise rie rue o of 0 income taxes axes in the he last 10 half of oj the a fiscal fical ear Balance Six Years Off During the depression the major part of the tax burden has shifted from income to the excise taxes and the stamp taxes on cigarettes liquor gasoline security issues and transactions electric energy automobiles automobiles automobiles auto auto- mobiles matches and many other items of indirect taxation When incomes were high they used to provide about 70 per cent of the government tax revenue but today the hidden taxes which are paid by all aU regardless of i Income come pro pro- vide more than 60 per cent of the thi government revenue These miscellaneous Internal revenue taxes have for the past several years established records In the 1936 fiscal year for the first time they passed the 2 billion mark In the new year they will probably ably reach 2 billion million Even Een with revenues revenue rising f the he way they are they hey will not at a the present rate rae be able to 0 bring about aboul a balanced bal anted budget before about abou six i years yra In ord order r to 0 pay for expenditures could not no come out of the o the regu- regu r. r S' S S'S S x t e Secretary of the Treasury Mor 1 far lar income and to 10 handle the he 2 hi bil lion soldiers Idlers r. r bonus bonu the he treasury had to 10 I let the he national T debt deb skyrocket 27 i to 0 billion at the he end of 0 the 1934 fiscal cal year ar 28 billion million at the doe clue of the nu next and now to 10 J 33 b billion illion million n- n results of 01 t pending bon bonIs bond tr transactions art or It Is t be abut the cannot estimated hat the debt wits St St. be at the close clote of the ifta n new fiscal 3 y rear yOne One of the Interesting ments menta developments develop develop- in the financial operations of the government recently has been CI the r retirement of John Ray mond McCarl McCar comptroller general of the United States State and popularly known as II the watchdog of the thi treasury He lie warned against wild and unjustified ed expenditure expenditures s. s and nd mare many times during his 15 years of service was waa a valuable too funds enthusiastic spending pending check of on C Western I |