AMERICA’S BUDGET.

Manawatu Standard, Volume LIII, Issue 52, 28 January 1933, Page 12

AMERICA’S BUDGET.

CREDIT IN DANGER. WARNING BY MINISTER. A serious warning of impending danger to the credit of the United States was given hy Mr Ogden Mills, Secretary to the Treasury. In an-appeal to Congress to balance the Budget this session, Mr Mills said it showed a deficit of 1,000,000,000 dollars (£200,000,000 at par), and urged that economies totalling half that sum be iriade, the balance to be made up front increased taxation. „ . He alleged that Congress was invading the private capital field to carry on" Federal activities, which was likely to retard recovery and injure the Government’s credit to a point where it would be necessary to pay .subnormal interest on Government bonds. The difference of a small amount in the interest rate, lie added, would mean millions of dollars next October, when 7.000, 000 ,000 dollars of Government obligations would become eligible for refunding. ■“No matter how good its credit is, no Government can go on living be-, yond its means and running counter to the principles which should guide public business,” said Mr Mills, who urged a sales tax as the backbone of: the new revenue programme. In 42 States, whose Legislatures are :at present in session, the same problem of Budget deficits is causing concern. Measures are being designed •to revise taxation, pay unemployment relief, and at the .same time reduce. Government expenditure to the level: of declining revenues.