xt7wwp9t2q46_127 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 130 "New Deal Budget Policies: A Review of the Huge Expenditures under the Roosevelt Administration and the Alarming Increase in the National Debt Despite the Most Burdensome Peace-time Taxes Ever Levied," July 27, 1936 text No. 130 "New Deal Budget Policies: A Review of the Huge Expenditures under the Roosevelt Administration and the Alarming Increase in the National Debt Despite the Most Burdensome Peace-time Taxes Ever Levied," July 27, 1936 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_130/Am_Lib_Leag_130_001/Am_Lib_Leag_130_001.pdf section false xt7wwp9t2q46_127 xt7wwp9t2q46 JO I N   * *
THE AMERICAN LIBERTY LEAGUE  
*   NE W DEAL
The American Liberty League is organized to defend i
and uphold the Constitution of the United States and to        
gather and disseminate information that (1) will teach §
the necessity of respect for the rights of persons and  
property as fundamental to every successful form of gov- i
ernment and (2) will teach the duty of government to j
encourage and protect individual and group initiative  
and enterprise, to foster the right to work, earn, save,  
and acquire property, and to preserve the ownership and  
lawful use of property when acquired. § * * *
The League believes in the doctrine expressed by  
· George Washington in his Farewell Address that while  
the people may amend the Constitution to meet condi- Z
tions arising in a changing world, there must "be no  
change by usurpation; for this * * * is the customary  
weapon by which free governments are destroyed." §
Since the League is wholly dependent upon the con- § A Review ef the Huge EXP€udituI`€S
tributions of its members for financial support it hopes § under the Roosevelt Administration
that you will become a contributing member. However, E and ~th€ Alarming Inerease in the
if you cannot contribute it will welcome your support as E National Debt Despite the Most
a non-contributing member. E .
g Burdensome Peace-time
— —--————————————--—-—--— -   Taxes Ever Leviecl
ENROLLMENT BLANK  
AMERICAN LIBERTY LEAGUE  
NATIONAL PREss BUILDING  
WAsH1NeToN, D. C.  
Q QRIC
  · . . . . . . . . . . . E  Img 
I desire to be enrolled as a member of the   l-3:6   5
Ameiican Liberty League.   ary Ley
Signature ..........................................  
l/Name ............................................  
+7 g
.9. <
Q: Street ............................................  
§   AMERICAN LIBERTY LEAGUE
E4 Town ............................................   National Headquarters
  NATIONAL PRESS BUILDING (
I County .......................... State ......,..,   WASHINGTON, D. G.
L  
Enclosed find my contribution of $3 ..........   * ” *
to help support the activities of the League.   _ g t _ _ _
E Document No. 130
(130)   July, 1926

 New Deal Budget Policies
The American Liberty League has dedicated
itself to the preservation of the American form
of government. Sound fiscal policies, a prime
requisite, are inextricably interwoven with the
J constitutional system. If waste, extravagance,
inflationary financing and profligate use of Fed-
eral funds to promote social and economic the5
ories continue indefinitely, the inevitable collapse
T of Government credit will endanger American in-
T stitutions. Financial chaos logically leads to
2 dictatorship.
  *  
` Four years of New Deal budget policies may
be appraised with the completion of the fiscal
. year 1936 and the approval of appropriations
W. _ _ _ for the fiscal year 1937. The fiscal years 1934,
HEN you have flnlshed wtth mls s 1935, 1936 and 1937 are those for which the New
pamphlet, please pass it on to some Q Deal must assume responsibility. Expenditures
fyicnd 0,,, acquaintance who might be 1 s of the few months of the Roosevelt administra-
' _ _ _ _ ’ tion prior to July 1, 1933, when the fiscal year
mteYeSted’ caumg his auentwn t° the ‘ 1934 commenced, were charted under the pre-
A membership blank on back page.   vious administration. Appropriations for the
i fiscal year 1937, extending some months beyond
j the term of the present administration, were
i sponsored by the New Deal and must be charged
to it regardless of the outcome of the election.
. The spending orgy shows no sign of abate-
_ ment. Indeed, it has constantly increased in
scope. Balancing of the budget appears even
s more remote than when the New Deal first em-
l braced the theory of spending our way back to
l prosperity. o
.   Examination of the facts with respect to
-   revenues resulting from record-breaking tax
¥ rates together with wasteful expenditures shows
A   that the budget can be balanced at an early
. l date, provided New Deal theories are replaced
by sound fiscal policies.
T Excessive expenditures not only are a threat
_ to the financial foundations of the Government
3

 but neceeeitate en unwarranted end cPPi`eeeiVe than ever before in peace time revenues will be
tax burden upon present and futrul`€ g€H€I°8·l’1ll.OnS- Sufficient to COVBT expenditures   per cent)
The status of the Treasury is a matter of vital 1 greater than average exnendituree befere the
importance to every citizen, as the cost of Gov- denreeeien
ernment is reflected in the prices of commodi- ll_ Emergency as Well as general expenditures
tiee· Ne che eecaPee eerne rneaeure ef indirect have continued to increase, although Mr. Roose-
taXaticn· velt says the emergency has passed, and although
High Peinte ef the budget eituaticn are as ‘ business improvement has been in progress and
feiiewei relief outlays should have declined.
1- EXPendituree in the feur Yeare fer which 12. If New Deal policies prevail, further large
the New Deal is I‘€SpO1'1SiblB will exceed by at gppygpyjatjgng fm- gmgrggngy purpgggg and an-
` least 27 per cent the direct cost to the United ether large derieit annear inevitable in lggg
States in carrying on its operations in the World
War- _ New Deal Totals
2' Expenditures .m the. four years. Wm be The four-year budget record of the New Deal
marly as great as m the eight years pmor to the is shown in brief in the following tabulation
fiscal year 1934. °
i 3. Expenditures in the four years will be at   Receipts Expenditures Deacas
iccSt 33 im Cent mcm thee the wml °°S° °f tim 1934 ..... $3115 554 050 37 105 050 085 33 989 496 035
Government from 1789 to 1913, a period of 124 1935 ..... 3;800;467;202 7;375;825;166 3;575;357;964
1936 ..... 4,115,956,615 8,879,798,258 4,768,841,643
y“”*"S· _ _ , 1937(est.) 5,5%,917,650 9,308,465,977 3,711,548,327
4. For the entire four years expenditures will ..—..-.. .1.-— 1-..-.
be at an average rate ef about $2 fer every $1 Totals $16,628,8%,517 $32,669,159,486 $16,040,243,969
· in 1‘cGcip’¤S. The annual totals as given above include what
5- Aggregate defieite ef the feur Yeare wiii be are classified in "General" and "Recovery and
abeut ecluai te the tctai Pubiic debt et the begin‘ Relief" funds. Trust accounts, which often show
ning ef the dePreeeicn· a deficit which properly should be added to ordi-
6· The Pubiic debt et the end ef three iuii   nary deficits, are excluded. The totals for 1934,
necai Yeare ef the New Deal wae 32 per cent l 1935 and 1936 are as given in the daily Treasury
ebeve the Peak ef the Wcrid War debt end iii l statement. The estimates for 1937, which are
Per cent greater than et the beginning ef the I subject to revision, are based on information fur-
ReeeeVeit adininietraticn- nished by D. W. Bell, Acting Director of the
7- The debt burden en each inan» wcrnan end Budget, to Senator Harry F. Byrd of Virginia,
child, only about $12 before the World War, has , en May 23, 1936, and published in the Cenaree,
rieen te $263 and inaY reach neariY $399 by the 1 sional Record. Mr. Bell informed Senator Byrd
end ef ieur Yeare ef the New Deat that he had adjusted his estimates in the light
8- EXPendituree in the iiecai Year 1936 fer eX‘ _ of developments since the submission of the an-
ceeded these ef any ether peeee—’¤ime year- 5 nual budget au January, 1936, including prob-
9- EXPendituree in the iiecai Year 1937 inaY be able changes in revenues and expenditures on i
greater than in 1936, even theueh the bcnue T account of court decisions and legislation then
item helped te make the tetei ef the eeeel year pauaiag. In Mr. Beira computation the entire
1936 abncrrnaiiy iarge· cost of the immediate payment of the soldiers’
10.·An0the1‘ large deneit ie in P1`0SPeet fer bonus was allotted to the fiscal year 1936 instead
1937 aithcugh with taxee new inuch greater of being divided between 1936 and 1937. His
4 5

 estimate of total expenditures in the fiscal year 000,000 f0i` each ef ths fsu? Ysans cf tha New
1936 was in excess of $9,915,000,000 and for 1937 Dsal represents an increase ef aPP1°0X1inats1Y
about $8,272,000,000. In tho above tab1o tho 100 per cent ever die ncrrnai iciai pricr ic the
estimate of expenditures for 1937 is increased dsl0I`sss10n·
over Mr. Bell’s total by the amount that his Expenditures of H101’€ than $32,000,000,000 in
1936 total is carried over and made available fad? Ysars as against receipts cf 0n1Y ab0nt
for 1937_ $16,000,000,000 means that the New Deal has
In all probability both expenditures and deficit ’ paid cut $2 f01‘ 0V€i°Y $1 taken in. This CO\1I‘S€
in the fiscal year 1937 will be greater than esti- has been feiiewed despite ccnsianiiy increasing
mated in the gibgvg ·[·,a,blg_·   1S     I`€V€I'1ll€SfI`OII1 l'1€3,VI€I` taxation l`,h8,I1 €‘V€I' b€fOI`€
New Deal opokoonnon that at present work—relief · levied cn the American pecpie
policies are continued it may be necessary to ap- . Ndtning like ths spending debanch cf tha New
propriate, early in the 1937 session of Congress, Deal ever has taken place either in the United
as much as $500,000,000 to carry the program to Statss 0i` elsewhere.
June 30, the end of the fiscal year, in addition to _
the $1,425,000,000 appropriated in 1936. This Defrcics
would mean a deficit considerably in excess of The fiscal year 1937 Wm be the Seventh Suc_
$4>00O>00p*000‘ Only le the fiscal rear 1936 has cessive year in which the budget has been out of
the derrert sees that high balance. In the three years 1931, 1932 and 1933
· · - the deficits, exclusive of trust accounts, were
C°mr’“1S°nS Wlth Othcr P‘m°dS respectively $902,000,000, $3,148,000,000 and
The f0in`·Ysai` t0ta1s are ef staggering Pi`0P0i`· $3,063,000,000, a total of $7,113,000,000. The
tions when compared with governmental outlays deiieits ei the New Dee] years, $16,9,11),000,0110,
cf Other perieds- The ccst dr the World Wat make the total since the beginning of the depres-
shrinks to a relatively modest sum beside the sion $23,153,000,000.
cost of four years of the New Deal. The annual The years 1931, 1932 and 1933 were in a period
i"0P0i‘t cf tha Ss0i`0tai`Y ef tha Treasury shews of shrinking revenues. Expenditures in 1932 and
that tha W0i`1d War UP te Jnne 30, 1921, 00st 1933 were about 25 per cent greater than in 1931
the United States $25,739,0%,000- The bnrdsn 1 and prior years, but in considerable part the
cf debt attidbntabls tc tha Wat was in Part i’s· deficits were due to the drying—up of the source
sponsible for economic difficulties of recent years. · ef revenue as business ieii ei1_ At the 10W point
in fear years cf the New Deai the ietai expendi- ein 1932, revenues wono only slightly mono than
inres ci $32,700,0%,000 cr mere will exceed the 1 $2,000,000,000, or about ha1t the normal previous
War 00st by as mush as 27 Ps? 0snt· ` total of expenditures. If revenues had been
Three Ysars cf sxpsnditnrss under the New   exacted in the volume of the current fiscal year,
Deal came close to equaling the total of expendi- , the years 1931, 1932 and 1933 Weuid have
tdrss in tha 12‘1·Ysai‘ P0i`10d frcnc 1789 ic 1913, 1 shown an aggregate surplus far in excess of
from Washington to Wilson. The total for the $g,999,999,999_
124 years was $24,521,8%,000- The f0i~n‘·Ysai` V The deficits under the New Deal continue de-
teter under the New Deer is ebeut ene‘th1rd spite additional revenue available from higher
greater- taxes under laws enacted in 1932, 1933, 1934,
Instead of the reduction of 25 per cent in Gov- 1935 and 1936_
ernment expenditures pledged by the 1932 Demo-
cratic platform the average of more than $8,000,-
6 7

 The Federal Debt prietary interest of the Government in corpora.-
The Fedeiei debt en June 30, 1936, teaened at tions and credit agencies financed wholly from
tetei ef $33/778,543,49d, an increase ei 32 ner government funds as $3,117,062,299. In addition
. cent above tbe peak ofthe World War debt, 111 to this amount the government has a proprietary
per cent above the post-war debt at its low point ( inicrcsii of $1>178»O84»167 in aseneies iiriaiiccii
and 61 per cent above the total at the beginning Pariiy by libc Treasury and Pariiy ircnl PriVaic
ei the Reeseveit adniinistiiatien_ funds. The two items total $4,295,146,466, all
Following are the teteis ei the Federal debt z of which has been claimed by the administration
en Various dates: as an offset against the debt.
Mer. 31, 1917 (pie-wer debt) .....,.,..... $l,282,044,345 The emeuei mveeeee m egeeelee eerily
 ifdi}*2eriaabtzr·natiit&Lati ·32;3ii;i?.i;2%i ‘ $§`3if§;i ZZ,te‘£§f’i‘l§§i3§fiideietififliiiiiitii EEE
iediie icijiiiiiiiideiiiivgiieieibdiiieieteiiieeiiyili   Federal Land Banks, the Intermediate Credit
June 30, 1934 (Roosevelt administration) 27,053,141,414 Banks the Home Loan Banks the Federal De,
June 30, 1935 (Roosevelt administration) 28,700,892,625 . ’ . ’ .
June 30, 1936 (Roosevelt administration) 33,778,543,494 Pcsiii Insumncc Ccrpcmiiicii and other ageneies
June 30,1937 (BSL) ...................... 37,000,UO0,000 Of g, permanent ehg,I·g,eteI·_ N0 ljquidatign Of
The increase in the public debt in the three these investments ever is likely to take place.
fiscal years for which the New Deal is respon- The arncuni, therefore, cannci? PrcPcriy be ccn·
sible, from July 1, 1933, to June 30, 1936, was Sidered as applicable to a future reduction of the
$11,239,370,933. bublie debt
If the Treasury during the current fiscal year Oi bbc $3,ii7»062»299 in agcncics financed
borrows the full amount of the prospective Wholly from Government funds $1,877,1%,577 is
deficit, which will not necessarily have to be done invested in the Rcccrisirucbicn Financc CcrPcra·
due to the abnormally large balance in the gen- iicu· The iicluidaiiicn of loans by cbc RFC and
erai fund at the beginning ef the year, the public other credit agencies will be a very slow process.
debt Wiii advance by June, 1937, to about $37,- There is no assurance that the administration
000,000,000. The estimate allows for a reduc- may uci? again, as ilwicc heretofore ic a total of
tion of $500,000,000 in bonus bonds which on $i»000»OO0»000» eause congress to ciiycrii RFC
h   1,   Were Outstanding to at totail Of 10311.]. I°€p3»yIIl€I].l.7S to relief and other HOHYBCOVBI"
$945,000,000. The estimated total of June 30, able PurPcscs·
1937, would represent an increase of about $14,- l Ccrribcbciib eeonomists Wbc iiayc dealt with
5()0,O0(),0()() in the debt during the four years ei the subject estimate that the amount which will
the New Dear be recovered from the $4,295,000,000 may be
The public debt on June 30, 1936, had con- , from $2»ccc»ccc»ccc to $2,5cc,ccc,ccc· This sum
siderably more than doubled from the low point s rcbrcscuiis ali biiaii Wiii ccmc back of about
of the post-war debt. The increase in the debt $i3»0O0»OO0»00O Whieh had been sPcniF from inc
during the depression period up to June 30, last, beginning of the dcbrcssicii to June 30, 1936,
was $17’752,456,407_ i i under the classification of "Recovery and Re-
lief."
Recoverable Assets The amount obtained from liquidation of
Spckcsrncn for the administration crnPilasiZc emergency funds in future years may easily be
the possibility of the reeovery of large sums in eaeet by losses on securities gdebeeteed by the
the liquidation of emerseney eredit agencies. Government. Such obligations amounted ed May
An official Treasury statement gives the pro- 31, 1936, to $4,467,4%,000. Of this total $3,045,-
8 9

 313,600 Tepteeehted hehde Ot the Home Owners can be safely carried. The present danger lies
Loan Corporatien, 61,4%,162,400 of the Federal not ee much in the total ofthe debt, huge though
Farm M¤rtseee_C¤rp9r¤t1¤¤ and $25},614,667 <>f it is, as in the uncertainty with respect to future
the ?ee?ehSt;eet1?heFthehee eCe;l?eeet§eh·_ These increases and the necessity of financing deficits
O 3, S O HO IHC u 6 In €I`€S W IC 3 SO 1S gu81I°·   infiationalry H]€thOdS_
ehteed by the G0VeI`hmeht· It is Yeeeghtzed that The administration boasts that by reason of a
ultimateiselitlwill be teeeesgew to Whigeeett e Vere reduction in interest rates, the carrying charges
eeheidere e eee th t e he heheihg 0 emee eh ‘ on the debt are not so great as when the total `
farms. The Treasury’s contingent liabilities in debt Was Somewhat emahel-_ This is tl-he It
this connection are not included in the public . meet also be taken into aeeeuht that market
debt- ‘ conditions have been created wherein investors,
Other Offeets to Debt particularly the banks, have had. no alternative
Seeeeeeey Mereeeehee ef the Treeeeey De but to buy Government securities at the low
partment, in a radio address on July 1, 1936, rags §X;(;ebyeJ;h?ee1`Iei)a§;1e}{'ef eee beekie eee
ditdd ddddd items rdddd dd ded dddddddd an ,,,,,,’,§,§“ ,2,,,,,, ,1,,   ,,,,, encouigtered
Offset Ot $8’750’000'0O0 to the public d°b“· The no subetrantlial difficulties in its iinancin ro
items included, besides morethan $4,000,000,000 rem Whieh e f eeeeee eeee eee meee eeeegegeee
of so-called recoverable assets from loans and g Z .11 ‘
1,,veet,,,e,,te, $2,700,000,000 in the general mes °i thm. °°““`°l W‘ mt eventually °e“S° ?‘T°“bl‘*·
,.,,,, ,e,eee,e,,e,eee i, ae ,,,1,, ,,,,,,1,,,,,,,,, ,,,,,,,. §e;g·de>;g};d geeglletdeeefgggeldeeemgge ;;<;j*,;d1edTg»e
The general fund balance cannot be regarded . . · `
,, ,,, 0,,,,, ,,, debt ,,, ,,,,,, ,,, ,1,,, ,,,,,, ,1,,,, ,, dtd dddd dd iddrddde Tddedddr dedddd th"°“eh
,,,,,,,,,,, ,,,,,,,,,y ,,,,,,,,,,,, ,, ,,,,,,, ,1,,,,,,,, ,,,, ded ddddd 1S ddddddy. dddddddddr Tdd ed-
eeeh e meet ef the beeee eee ether eee ee portion of bank assets invested 1n Government
_ eieee gleiilreed g securities is so large as to form an element of
It is perfectly true that by monetary manipu- danger`
lation the Government can reduce its debt as - Pay Capita Debt
much as it pleases. The gold stabilization fund . .
  ,,,, ee by ,,,,,,1,,,,,,,,, ,,1 at ,,,,1,,,. The   geggjg @3;* Qggdegejedjeeegddgxj
‘ Secretary of the Treasury neglected to mention _ Tier ee ege Weelg Wee ieee bgeedee dee ee the
possible inflationary profits in connection with Zebe ef the Fedeeel Geeemmeeee wee e eel ee
silver, which legally may be used to retire debt, eel eeeee $12 fee eeeh mee weeeee engl eheld
nor did he refer to $3,000,000,000 of greenbacks . y . ’ .
Whieh mee, be ueed fee the eeme pereeee under   in the United, States. The per capita Federal 1
o eeehelee rented ie the Themee Ieeeeiee debt rose to about $240 at the end of the World e
e Ameedeieeeg War and declined toabout $131 by the beginning “
The possibilities of monetary manipulation, Ofeztihiegeeiggge ef eee eeee fen eeeeel eee ef ,
with attendant inflationary dangers, offer scant eee Re eeeegie degeeeeee e. eh   d be t
comfort in connection with the future debt situ- 0 G G mn Ze pw Cam G 6 .
eeieee was about $180. At the conclusion of three years e
_ _ of the Roosevelt administration this burden, ap- T
Debt Policies plicable to every man, woman and child in the
No one can state with exactness the point at country, had advanced to approximately $268
which the public debt will become greater than each. And during the present fiscal year it may
10 11 °

 go to almost $300 each. In other words the New for the fiscal year 1937 as appear in this docu-
Deal will have cost in four years each of our ment are based on the estimates of the Budget
people individually the sum of $120. Multiply Director rather than on the bills as passed by
this by 4.8, representing the average number of Congress. The Budget Director’s estimates pur-
persons per family, and you have an increase of port to show the actual outlay in specified years.
$576* per family in the Federal debt as a result
of the Roosevelt administration. Revenues
Appropriations for 1937   The following tabulation, which is exclusive
- of trust accounts except for 1930, shows changes
Figures on appropriations by Congress are al- in revenues in recent years:
ways confusing and often misleading. The aggre- ‘· (AH figures in millions of dollars)
gate 1S usually considerably larger than that of Fiscal years: 1930 1933 1934 1935 1936
actual expenditures. The appropriation totals Ingome taxes ....... $2411 $746 $818 $1099 $1426
usually include postal expenditures. financed from M£igg?§€°r%;€nu€n_ 628 858 1470 1657 2010
postal receipts which do not ord1nar1ly appear Customs ........... 587 251 313 343 387
in totals of Treasury- expenditures. Often appro- I]§§_§§§;;?I?é*‘;;‘?{8ei I 3 jj       gg? 2%*;
priations are made in such a way as to make —-— —-— --- —-— ...-.
difficult their Segregation by fiscal years. ReeJp_ Totals ........... $4178 $2080 $3116 $3800 $4116
propriation of funds and diversion to other pur- The itemization of receipts shows the extent
poses of amounts previously appropriated are to which the Government has shifted from direct
further causes of confusion. Some of the state- to indirect taxation. This course was forced by
ments on appropriations fail to distinguish be- the depression, which wiped out a large part of
tween authorizations and appropriations with the revenue from income taxes. Very low in-
the result that the same funds are counted twice. come tax rates prevailed in 1930, but the yield
The Seventy-fourth Congress unquestionably from them was in excess of $2,400,000,000. By
0 was the most extravagant in peace-time history, 1933 the revenue from income taxes had shrunk
although the appropriation totals as announced to $746,000,000. Despite the imposition of higher
give a somewhat exaggerated idea of contem- rates, income tax revenue in 1936 amounted to
plated expenditures. The appropriations of the only $1,426,000,000. In the fiscal year 1937,
two sessions of the Congress aggregated approxi- with rates in effect higher than those of war
mately $20,000,000,000. The totals as announced . time, the revenue from income taxes is estimated
by Senator Carter Glass of Virginia, Chairman   at upwards of $2,000,000,000. The comparable
of the Senate Committee on Appropriations,   war-time rates raised, immediately after the
were $9,579,756,510 for the first session and ; War, nearly twice that much.
$9,716,430,863 for the second session, a total of Excise and other miscellaneous taxes were
$19,296,187 ,373. According to Representative yielding only $628,000,000 in the fiscal year 1930.
John Taber of New York, ranking Republican The imposition of many new excise taxes en-
member of the House Committee on Appropria— abled the Treasury to raise more than $2,000,-
tions, the appropriations of the first session 000,000 from this source in the fiscal year 1936. “
amounted to $10,459,756,227 and those of the The total in the fiscal year 1937 is estimated at
second session to $10,129,710,522, a total of $20,- more than $2,100,000,000.
589,466,74}:9. Different methods of computation Customs revenues shrank as imports fell off
are responsible for the discrepancies. during the depression, but have been steadily T
Such figures on estimated total expenditures gaining in recent years. ·
12 13

 In the fiscal year 1930 income taxes accounted he mere neerly eemparable to regular expendi-
o for 58 per cent of total revenues. They fell off tnree Prier te the New Deal. The appropria-
increasing slowly to 29 per cent in 1935 and 35 enpplernerrted by alletmellte from emergency
per cent in 1936. Miscellaneous taxes contributed J fnnde under the eleeeideatien of Reeovery and
only 13 per cent ofthe total in 1930 but rose to Relief- The result is that the item of depart-
41 ner eent in 1933, 47 ner eent in 1934, 44 ner mental expenditures falls- far short of showing
eent in 1935 and 49 ner eent in 1936. ¤ what the departments actually are doing. One
Revenues in the nsee,1 year 1937 Were esti, factor which makes a comparison confusing is
mated in the annual budget in January, 1936, at the Shifting ef emergency expenditures to the
$5,654;,000,000, including $547 ,000,000 from taxes   General elaeeifleation whenever it is determined
under the Social Security Act and other special then en e·etrVrtY hee been g1Ve11 a permanent
sets Wnieh must be eensidered e trust fund and status. Agricultural benefits were thus shifted .
not rneerne ennueeme to genera] treasury pur_ in the daily Treasury statement for 1936 and in
poses. Acting Director of the Budget Bell, in · the budget for 1937.
revising the estimate in May, 1936, to take The f01l0WlDg tabulation, which is exclusive
account of the loss of processing taxes and the ef truer eeeednte except for 1930, Shows expendi-
increase in corporation income tax revenue under tures fer nVe reeent fiscal years, classified ac-
legrsurtren then pending, placed the teteu for cording to the various methods followed by the
1937 at $5,596,917,650. This total is subject to Tree·edrY in the different years:
a further revision. · . .
Estimated revenues in the ·iiscal year 1937 will eee.] ,e.r§f`” Hg“”€S1§,$“‘11i3§§ °f1°e‘§2mZeee ,,,3,
be greater than 1n any year since 1921. The total Ge¤erai ·---....... **** $3866 $3101 $3721 $5589
in the fiscal year 1936 was about equal to normal Irligg-:,r$§rI;f:yane` eerie;     $293    
revenues before the depression. Under the very -—-— -1 —... ..— t
e high income tax mms DOW prevailing, an im_ Totals ........... $3994 $5143 $7105 $7376 $8880
provement in business will inevitably result in If t1°¤St accounts were added to totals ag here
a very substantial further increase in revenues 3rVe¤ it Weuld increase both revenues and expen-
in 1938 and subsequent years. It must be taken drturee ef New Deal years by several hundred
1ntO agcgunty hgwgvgy,   in thg   II1llllOI1S. The l1I`l1St1 &CCOl11'1l`»S W€I`G I'€l3tlV€ly
byackgts p1·€S€1·1f, tax ygrtgg arg ppagfjcgtlly con- 1 $111311 lu   and BIG 1HCll.lCl€Cl lI1 l]l'1B totals of
iiscatory. If continued, the result will be the revenues and receipts ter that year, different
destruction of the sources of future income taxes. hefghkeepins methede makillg their Segregation
di cult.
Expenditures U ,
Changes in classification make it very difficult General EXPe¤drt¤1‘eS l
to present an adequate comparison of expendi- Study of budget figures leaves no uncertainty
tures for different purposes. After the advent as to the absence of any policy of economy in
of the New Deal, expenditures at first were regular as well as emergency agencies. The reg-
classed as "General" and "Emergency" and, ular departments were forced to economize dup-
commencing July 1, 1935, as "General" and ing the first year of the New Deal, because of {
"Recovery and Relief." The totals of General provisions of the Economy Act of March, 1933, 1
expenditures, as given in the Treasury state- and because of the slashing of appropriations in  
ment, are much smaller than totals which would the winter of 1932-1933. After a year of spend- ?
14 15 ;

 ing by emergency agencies, limitations on the the fiscal year 1936, $720,411,837 in 1935 and
regular departments were loosened and extrava— $645226,129 ifi 1934. -
gance on a huge scale became the rule. » Other classifications under Recovery and Re-
The upward trend in expenditures in regular lief include agricultural aid, exclusive of ag1‘icul— ’
departments in three fiscal years of the New tural benefits which originally were listed in the
Deal is shown in the following tabulation: Emergency column but were shifted to General
Departments 1934 1935 1936 in 1936, aids to home owners, and miscellaneous,
State Dept. ........ $11,121,103 $15,860,780 $16,816,356 which includes the Reconstruction Finance Cor-
Treasury Dept. .... 108,538,057 121,863,249 132289,463 pOI·atjOn_
War Dept. ........ 209,415,78l 214315,015 $74,501,437 . . .
· ’ , , ’ ’ I { I _
32;,’3 ,3333;,tg ·· 233*333333 333333*333 333333333 1,,%,3333333 33,133,,33333133i33t3333iti333i
333 O3        33 33 °“33”,3it33’,'°333i33,i393333*873 33,33
- , , , , , , sca year , , , in an ,-
33331 3383333; L 1; 33;33?~.;333 333333333 ,33333333 sotooe in iota. Substantial additional aid was
It will be noted that each of the ten Cabinet given to agrlclllture through the Commodity
departments Spent more money in 1935 than in Credit Corporation and through the land banks
1934, and more in 1936 than in 1935. Appropri- mid. Otheii agencies under the Farm Credit Ad-
ations for 1937 show that all departments will s mmlstmtmn
igggd approximately as much or more than in Administrative Costs
The totals given above do not begin to tell the Admieistrative eest of emeigeney asenoies nes
whole story as they represent only amounts ex- formed et verv eensidetenie item in reoent
pended from specific appropriations. Most of the midgets- _ .
departments also spent considerable amounts The National Reeevery Administration spent ei
from allotted funds. The Treasury Department giinnd tetni of eneiieiieee ter administrative
3 expenditures are exclusive of those for public rerooses- Ot tnis amount eieiteeieee Was spent
buildings, whether from appropriated or allotted pi°iei` to the deeision of the Supreme Court in the
funds. The War Department expenditures are i\tRA_ense and $n>422i3O2 iitter eode'me·king Wes
Exclusive Of river and harbor Work The D€_ invalidated. Payrolls accounted for about $19,-
partment of Agriculture expenditures are exclu- eeeieed oi tleaessresate oest-
sive of outlays of the Agricultural Adjustment , Adniinistitntive expenses of tne Pnniie Works
Administration and for highway construction. _ Atdministtiggegn tete1iedJ$52>8;%2e5 groin   oil;1e‘
a ion 1n u o une 19 6. t is
Emergency Expenditures ) amount $27,138,263 was spent in the fiscal year
In the fiscal year 1936 $1,263,661,490 was 1936.
spent ret work relief and $495,591,987 for direct The Works Progress Administration spent
relief, e. total of $1,759,253,477, while it 1935 nearly $70,000,000 for administrative purposes
$1,814,477,881 was spent fer direct relief and in during the iiseal year 1936, more than $50,000,-
1934 e total of $1,145,865,041 for direct relief 000 being for salaries of supervisory officials and
and civil works. employees.
For emergency conservation work $486281,194 The Resettlement Administration spent up- T
was spent in the fiscal year 1936, $435508,643 , Wards of $34,000,000 for administrative purposes .
in 1935 and $33],940,85] in 1934_ Expendjtuyee in the fiscal year 1936. Salaries amounted to T
for public works amounted to $956289,914 in ¤€9»rlY $25,000,000
16 ` 17

 r The Heme Owners Leen Cerperetien Spent ¥ Revenues an the hseer year 1938 are likely to
$36,000,000 fer edminietretive pnrpeees in the , exceed se,000,000,000. There is net the slightest
heeei reer 1936 end ehent $35,000,000 in 1935- doubt that expenditures could be held to that
The R€COHSl:ruCtiOH FiH3rHC€ Corporation spent 1 amount   adversely affecting the public
$14,000,000 fer edminietretive pnrpeeee in the interest. It would mean as much as $2,000,000;
i1See1 yeer 1936 end ehent $10,600,000 in 1935- 000 for sneeevery end Rehetr in addition to the
The Federei Heneins Adminietretien Spent, s4,000,000,000 which represented normal expen-
nearly $12,000,000 for administrative purposes .· ditures before the deppeeejee
in the llstal yeer 1936 end ehnnt $7,000,000 in   The issue is between an indefinite continuance
1935. { of an unbalanced budget during experimentation
The Asrienitur e1 Adjustment Adrninietretien L- with fanciful theories and an early readjustment ‘
spent 8, total of $78,198,265 for 8·dm1111St1`6»t1V0 , of the fi