The Barnwell people-sentinel. (Barnwell, S.C.) 1925-current, July 30, 1936, Image 3
The Barnwell People-Sentiael, BmniwelU 8. C- Thursday, July 30, 1936
UNCLE SAM CHECKS HIS BOOKS
End of Fiscal Year Finds Goverment Costs Still Mounting; Balance
of Budget Not Yet in Sight; Treasury Reports.
By CARLTON WILLIAMS
T HE fiscal year 1936 is now ended, and the United States gov
ernment’s financial operations broke at least three records—rec
ords which, if Secretary of the'Treasury Morgenthau'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 approxi
mately 8 billion 880 million dollars.
The deficit was also the largest ever compiled by the United
States government in times of peace. It was about 4 billion 754 mil
lion dollars. It would have been<$
only about 2 billion 700 million
had it not been for the passing of
the veterans’ bonus.
Federal expenditures, emergency
and regular, advanced the public
debt during the fiscal year to an
all-time record high of 34 billion
427 million dollars on June 17. Be
tween then and June 30, it was
fiscal year they went back to 7
billion 200 million, if the veterans’
bonus is excluded, as it fairly may
be, to make sure this report is not
biased politically in any way. Cer
tainly enough, it will have to be re
garded as part of the public debt.
Many expenditures which in 1933 were
regarded as "emergency" have now been
included in the regular government ex
penditures, as may, be seen in one of the
charts shown here. While there has of
late been a decline in emergency spend
ing, there has been a corresponding in
crease .in regular expenditures.
Direct relief, work relief and
emergency public works expendi
tures have decreased from 3 billion
59 million in 1935 to 2 billion 569
million in the 1936 fiscal year.
Spending for the Civilian Conserva
tion corps is due to decline from
469 million to 308 million in the
measures of his program.
Revenues have never failed to
improve since 1932. They were 3
billion 800 million dollars in the
1935 fiscal year, and jumped to 4
billion 116 million in the year just
closed. Next year, it is estimated,
they will reach 5 billion 540 mil
lion. This, if it proves true, will
mean the biggest tax bill since 1920,
when revenues amounted to 6 bil
lion 695 million.
In the new fiscal year it is estimated
that income taxes will provide more rev
enue than they have at any time since
1930, when rates were low, but incomes
(1929) were at their highest. The Rev
enue Act of 1935 will be a factor in the
rise of income taxes in the last half of
th& fiscal year.
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, 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
tKe “hidden” taxes, which are paid
by all, regardless of income, pro
vide more than 60 per cent of the
government revenue.
These “miscellaneous internal
Comptroller General McCarl, Who
Recently Resigned After 15 Years
reduced to 33 billion 779 million,
largely through the redemption of
soldiers’ bonus bonds.
Cites Recoverable Assets.
Against this debt. Secretary Mor-
genthau pointed out, must be held
about 8*4 billions, which the gov
ernment holds in what he calls re
coverable assets. Most of them, to
be sure, are recoverable, but a cer
tain portion of them, including
about 4 billions in loans to farmers,
railroads, banks, insurance compa
nies, states and cities, are open to
question; it hardly seems possible
that any organization could make
loans so varied in nature and com
bining to make so large a total,
could expect to collect them all.
Other recoverable assets listed
by the secretary are 2 billion 700
million cash and “money in the
bank,” and 2 billion in the “stabil
ization” fund. This latter fund, how
ever, it would probably be unwise
to touch, because it was estab
lished for specific purposes, prin
cipally for stabilizing the dollar in
foreign exchange markets.
Beudet mhos Mr. Morgenikest eppmr-
mtly ronudrrrd legitimate tubtrmturns
from the public debt ere about 4 1 , bil-
lums i» equally legitimate add it tout to
the debt. 7 hete are got ernment guaran
ties and obligations-- federal/* underwrit
ten corporations and the like.
It was apparent as the new fiscal
year began that little or no prog
ress in balancing the budget would
be made. Although revenues are
due to continue increasing, as the
country enjoys a continuation of
the trend back toward prosperity
and as the administration's new
revenue producing measures be
come more effective, expenditures
are also due for a rise, some of
them expenditures unforeseen by
the government a year or two ago.
Taxes and other revenues, accord-
jig to estimates, will probably sur
pass those of any other year in
history with the exception of 1920.
An important phase of the new
fiscal year. Farm relief costs, 1
revenue” taxes have for the past
1935-36
1936-37
(ACTUAL)
(ESTIMATED )t
(flfmru to ttodb «n mlllhm ol goliori)
(flfmrsi to ktocti trs aifltom W gtlltrt)
*ELIEF$
p£2*»lg£
I0NUS
'• V. 1771.V;
eegeavm
e*m •:
iUiyss *;•
NATIONAL
DEFENSE
V. MfMVTt
FARM RELIEF
712
—rrr
Ms
PUBLIC DEBT
SERVICE
IIS] .
w
BPttWTUIB
*8.880.000.000
IECDFT5
M. 116.000.000
RELIEF*:
stuniffl#
OPERATING:
&S COSTS
££ 104|:v£v;
w
•*—
UTtMU
M'lkU
;•:*.• wi
• iiiuat
ftOMOTt
(•«
FARM RELIEF
,i.„
PUBLIC DEBT
SERVICE
1441
BISCflUICMS
(SO
EXfOOTlIKB
^$02,000,000
ucnre
(5.640.000.001
Where the Money Goes and Where It Comes From
too. will probably be on the down
swing.
••Regular'’ Costs Mount.
In regular operating and admin
istrative costs have the greatest
rises been apparent. The present
administration, it is estimated, has
added some 250,000 federal full- |
time employees in addition to the
relief rolls. Operating and admin
istrative costs were 550 million for
the 1935 fiscal year, increased to
735 million in the 1936 year, and
for the new one are expected to
reach 1 billion 48 million.
Incorporated somewhere in the ex
planation of this is the fact that the
operations of many of the federal
departments, especially those deal
ing with public works, were severe
ly cut during the economy wave
which followed the change of ad
ministration in 1933, but they are
2 3 4 5 6
BILLIONS OF DOLLARS
Emergency Expenditures
Regular Expenditures
Three Years of Federal Spending (Does Not Include the Veterans’
Bonus)
fiscal year will be the appearance
for the first time in the ledger of
the new social security program.
The federal ledger in the new
fiscal year will be important his
torically because of the changing
nature of its entries. It will see
the institution as permanent ex
penditures of many of the meas
ures which the administration
adopted at first as purely “emer
gency” in character.
How Spending Has Increased
Before 1934 the largest expendi
tures in peace time during a single
year had been 6 billion 404 million.
During the 1934 fiscal year the gov
ernment found it necessary to lay
out 7 billion 244 million dollars;
the next year expenditures were up
182 million, but during the 1936
now finding their ways back into
the budget.
For instance, when President Roosevelt
first came into office he effected imme
diate and drastic economies in river and
harbor and public building work. They
were subsequently revived in the emer
gency programs. Now Mr. Roosevelt has
indicated his desire to return them to
the permanent budget, with an annual
appropriation of about 500 million dol
lars.
Taxes Keep Going Up.
Generally, the switch of public
works programs back to the regu
lar budget, combined with other
transitions, is regarded as the be
ginning of the attempt to make
most of the New Deal a perma
nent phase of the government The
President has asked for the insti
tution of the CCC and tlv» farm
control program as - permanent
several years established records.
In the 1938 fiscal year for the first
time they passed the 2 billion mark.
In the new year they will prot>
ably reach 2 billion 250 million.
£i*n uilh rerestuat rising the svoy they
are, they will not. at ike present rnta. ba
able to bring about a balanced budget
before about ns year*, la order In pay
lor expenditures ukick could not coma
out of the regular income, and In han
dle the 2 billion soldiers’ bonus, the
treasury had to let the national debt
skyrocket to 27 billion at the end of the
1934 fiscal year, 28 billion 700 million at
Secretary of the Treasury Mor-
genthau
the close of the next and now to 33 bil
lion 750 million. Until results of pending
bond transaations are knotvn, it cannot
be estimated what the debt will be at
the close of the new fiscal year.
One of the interesting develop
ments in the financial operationi
of the government recently hai
been the retirement of John Ray
mond McCarl, comptroller genera]
of the United States and popularly
known as the “watchdog of the
treasury.” He warned against wild
and unjustified expenditures, and
many times during his 15 years o!
service was a valuable check on
too enthusiastic spending of publi*
funds.
• Honiara Xoaxgagai Union.
IMPROVED
UNIFORM INTERNATIONAL
S UNDAY I
chool Lesson
By RBV. HAROLD L. LUNDQUI8T.
Dean of the Moody Bible Inatltute
of Chicago.
O Western Newspaper Union.
■=
Lesson for August 2
PHILIP’S MISSIONARY LABORS
LESSON TEXT—AcU «-5-40.
GOLDEN TEXT—Therefore they that
were scattered abroad went everywhere
preaching the word.—Acta 8:4.
PRIMARY TOPIC—PhiUp Telia the Glad
News.
JUNIOR TOPIC—PhiUp Telia the Glad
News.
INTERMEDIATE AND SENIOR TOPIC
-Pioneering for Jesus.
YOUNG PEOPLE AND ADULT TOPIC—
The Gospel Crosses the Frontier.
Evangelism is the work of every
follower of Christ, and primarily
the work of the layman. This duty
cannot be delegated to the church
as an organized body or to its offi
cial servants.
Philip was a layman, a deacon in
the church by office, but an evan
gelist by the gift and calling of the
Holy Spirit. His experience in lead
ing the Ethiopian eunuch to Christ
demonstrates that one who is yield
ed to the Spirit—
I. Will Find Opportunity tor Soul
Winning (v. 26); Most unexpected
places will afford opportunities.
Philip was in the midst of a great
revival in Samaria when the angel
of the Lord sent him to Gaza.—-a
desert place. Who would he meet
here? Remember that the great
world-evangelist, Dwight L. Moody,
was converted in a humble, shoe
store by the earnest approach of
a Sunday school teacher.
II. Will Respond Immediately to
Mtf Spirit's Leading (w. 29, 30). The
Spirit said “go.” Philip “ran.” The
fundamental of fundamentals in
God’s children is obedience. The
opportunity, the inquiring soul, the
equipped personal worker, ail were
prepared by God for just that mo
ment. All would have been lost had
Philip failed to obey.
III. Will Find That Men and Wom
en Are Ready to Receive the Truth
(w. 28, 31-34).
God prepares souls, and more are I
willing to be saved than we think.
Whether it was through his experi
ence at Jerusalem, his spiritual I
hunger before he went up. or the j
reading of the Word, or all these ,
together, the eunuch was ready.
Neighbors, schoolmates, trades
people, fellow workers—they may
present God's opportunity for us.
. IV. Will Find That God Honors
Men by Using Them to Win Others.
He could “save a man all alone
' on the top of the Alps,” but ho
doesn’t ordinarily do it. Remember
; it was “the sword of the Lord and
i of Gideon” that wrought a victory,
j The eunuch needed an interpreter
of the truth. Philip was God's man.
V. WUI Know God’s Word (v. BS).
We cannot interpret what we do not
; know. One who is not personally ac-
| qua in ted with the Living Word by
regeneration, and the Written Word
by diligent study, is not able to help
others. Could you begin (as Philip
< did) at Isaiah 53 7. and lead a man
to Christ? If not, should you not be-
^ gin to study your Bible with such an
| end in view?
VI. WUI ‘Tarry Through’’ to a
Decision (w. 36. 37).
A salesman may be brilliant, cul
tured. and persuasive, but what
counts is the signature on the dot-
| ted line at the bottom of an order.
Philip pressed for and obtained a
decision.
VII. WiU Follow up HU Convert
(vv. 36. 37).
Much so-called evangelism fails
to go beyond a mere profession—a
declaration of faith. The eunuch and
Philip both knew that an inward
faith declares itself in an outward
act—and he was baptized.
VIII. Will Recognize That the Mes
sage Is Important, Not the Messen
ger (v. 39). When the work was
done the evangelist was carried
away by the Spirit. God’s work goes
on. His workman we set aside. As
an advertising company has well-
expressed it, “The purpose of ad
vertising is to impress the product
upon the reader’s mind, not the
medium.”
It is a fine testimony to the effec
tiveness of Philip’s ministry that al
though he was gone his convert
went “on his way >kioicing.” His
faith did not rest on tWe evangelist
nor any human fellowship—he knew
God. Let us be sure to win souls
to God and not simply to a personal
allegiance to us or to a religious
organization.
Why not be a Philip? Any man
or woman who knows the Lord
Jesus Christ as personal Savior can
be a winner of souls. It has. well
been said that all that Philip had
was “a love for souls, a knowledge
of the Word and a sensitiveness to
the leading of the Lord. That is all
we need. If every Christian were a
Philip the world would be won for
Christ in ten years.”
Blooded Horses Are Revered in Kentneky.
Count Your Blessings
He is a wise man who does not
grieve for the things which he has
not, but rejoices for those which he
has.—Epictetus'.
Self-Knowledge
Self - reverence, self - knowledge
self-control; these three alone lead
life to sovereign power.—Tennyson.
Center of Selfishness
Selfishness is the making a man’i
self his own center, the beginning
and end of all he doth.—John Owen
Prepared by the National Geographic Society,
Washington. D. C.—WNU Service.
S OME 46,000 acres of land,
much of it magnificent virgin
forest, will be included in the
Mammoth Cave National park
in Kentucky. In the long struggle
to establish this national park,
Maurice H. Thatcher, for many
years United States representative
from Kentucky, was a prime mover.
Discovered in 1803, Mammoth
Cave was considered the largest na
tional cavern m America until the
exploration of the Carlsbad caverns
in New Mexico. The underground
passages are of remarkable extent,
probably undermining the entire
area of the proposed park develop
ment. Almost every dweller in the
neighborhood ha^a cave of his own,
to which he seeks to attract visi
tors.
Underground rivers in which
swim eyeless fish are a weird fea
ture of the caves. Besides these
there are vast stalactites and stalag
mites, the best of which are seen
in the part of the cavern reached
through the New Entrance. A “froz
en Niagara” of salmon-colored rock
and a stalactite which, when illumi
nated by an electric light placed be
hind it, shadows the perfectly mold
ed form of a beautiful woman step
ping down as if to bathe in the sub
terranean river, are unique.
There are onyx caves and crystal
caves; one might profitably pass
weeks going through them all. It
was in one of these that Floyd Col
lins met his death.
Beyond Mammoth Cave to the
west winds the beautiful Green riv
er known as one of the deepest fresh
j water streams in the country.
In this neighborhood was shed the
first Kentucky blood of the Civil
war. when Granville Allen was shot.
Families were torn asunder by the
1 difference of allegiance. Few atatee
knew the horror of Civil war as did
> Kentucky. To understand what war
meant to the border people, one
needs only to be reminded that Jef
ferson Davis was born near Hop
kinsville, not far from Bowling
Green, and that Abraham Lincoln
1 was bom near Hodgenville, a few
miles to the north.
Birthplace of Llacela.
At Hodgenville. a stately memo
rial shelters the humble log cabin
in which Lincoln was born. Sim-
, plicity marks the place as it marked
the great soul it fostered. Visitors
pause for a drink from the Lincoln
| spring.
Memories of Lincoln linger in the
very air between Hodgenville and
Bardstown. To Knob creek the Lin
coln family moved before young
Abraham was two years old, and
there they lived until he was eight.
His earliest recollections, he wrote,
were of Knob creek, and how he
was saved from drowning there
; by the quick aid of a chum. Not
much chance of drowning in the
creek now; it is little more than a
rivulet.
If there is a house in the world
worthy to inspire music, it is “My
Old Kentucky Home,” near Bards
town. While a guest in the house,
then owned by his kinsfolk, the
Rowan family, Stephen Collins Fos
ter composed that deathlers ballad,
“My Old Kentucky Home.”
He wrote the music, it is said, at
a desk in the wide hall, the sun
streaming through the door opening
toward the slave quarters. Thai
selfsame desk still stands in its
wonted place, the most precious of
Kentucky’s furniture relics.
Even without the Foster tradition,
the home would be priceless. It
makes no attempt at ostentation,
but it is peopled with ghosts of
Ihe fine old South.
In Bardstown is St. Joseph’s ca
thedral, in which are displayed sev
eral original paintings by great
masters. They are believed to have
been a gift to the church by Louis
Philippe.
Not far from the town is Geth-
semane, a retreat of Trappist
monks, one of two such monasteries
in the United States.
Louisville, the city of George Rog
ers Clark, comes next on your itin
erary, northwestward over an excel
lent highway. It was there that the
doughty soldier ended his days in
bitterness over the ingratitude of
the nation he had spent his all to
aid.
At Louisville, too, are the home
and tomb of President Zachary
Taylor, “Old Rough and Ready.”
His daughter Knox was wooed and
won by Jefferson Davis, then a
young lieutenant in the general’s
command.
To lovers of horse racing, Louis
ville is a mecca when the Kentucky
Derby is run at Churchill Downs.
Where Baseball Bats Are Made.
At the Louisville Slugger factory,
baseball bats for many of the fa
mous players are hand-turned by
skilled workmen. The second-
growth ash comes to the factory in
rough billets. These billets are
rounded and laid on racks to sea
son for 17 months before they are
made into bats. Because ball play
ers are particular about the weight
and balance of their bats, each £tep
in the shaping of the sluggers re
quires the utmost oare. Special or
ders are prepared by hand workers.
From Louisville it is a pleasant
trip to Frankfort, the hill-encircled
capital of Kentucky. The old State-
house, now a museum, is an archi
tectural gem of pure Greek design.
Within it is a self-supporting circu
lar stairway, one of the few remain
ing. The new Statehouse is a splen
did structure, with a magnificent ro
tunda under the vaulted dome.
It is strangely fitting that Daniel
Boone is buried in the cemetery
overlooking the capital of the state
he helped win from the wilderness.
From the path around his tomb one
looks down to the broad valley of
the beautiful Kentucky river.
The heart of the Blue Grass is the
home of the thoroughbred. To one
who has striven futilely, baffled by
crab grass, to encourage a lawn,
the sight of those blue-grass pas
tures brings mixed feelings. One
does not feel outraged to see splen
did horses browsing on such lawns,
but one is hard put to escape taking
affront at cows and sheep feeding
on the velvety carpets.
Horses in the Blue Grass are
monarchs of the earth. On some of
the famous farms the huge circular
stables house quarter-mile exerciee
tracks floored with tan bark.
The thoroughbred is nurtured
more carefully than a baby-show
contender. A few hours after he is
born he is fitted with a halter, that
he may become used to the equip*
menu fie is permitted out of doors
only when conditions are exactly
right. If be acratches his silky
skin, he is plastered with antiseptic
and put in a hospital. He drinks
only from hit own special bucket
and his diet would be the despair
of a French chef.
The owner of one farm cut by a
highway has a tunnel under the
road through which his thorough
breds may be led without danger
from passing automobiles.
There is a thrill in visitjng the
stable that housed Ifan-o’-War,
Golden Broom, Crusader, sad Mars.
Lexington Is Charm lag.
In itself Lexington has a wealth
of charm as well as historic inter
est. The University of Kentucky is
there, its mellow old buildings scat
tered over a shady campus. In the
study room at the College of Engi
neering, heavy tables, with tope
fashioned of thick sections of a ven
erable sycamore tree that once
grew on the campus, are treasured
relics covered with carved names
of alumni.
Another fine educational institu
tion in Lexington is Transylvania
college, the first school for higher
education west of the Alleghenies.
There Jefferson Davis and Henry
Clay were once students. The li
brary of this school contains thou
sands of volumes so rare that schol
ars from all over the world come to
consult them.
Ashland, restored home of Hen
ry Clay, stands on the outskirts of
the city. On the walk behind the
house the magnetic orator and
statesman used to pace back and
forth planning his speeches.
Through the perfect green of the
Blue Grass country you may drive
to High Bridge, where a railroad
bridge 317 feet above the water
spans the Kentucky. Crossing the
river on a ferry, you approach old
Shakertown, once the home of a
strange sect who believed in celi
bacy and the coming of the millen
nium.
Another place of interest in a
swing south Lexington is the old
fort at Harrodsburg, where George
Rogers Clark planned his cam
paigns. The fort has been restored
and is open as a museum.
Old Centre college at Danville at
tracts you because of the heroic vic
tories of the “Praying Colonels”
football team.
At Berea college you see the re
markable results of vocational ed
ucation brought to mountain whites.
One cannot escape a feeling of hu
mility at sifht of the industry of
these students.