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Facts Forum News, Vol. 4, No. 8, September 1955
File 057
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Facts Forum. Facts Forum News, Vol. 4, No. 8, September 1955 - File 057. 1955-09. University of Houston Libraries. University of Houston Digital Library. Web. January 23, 2020. https://digital.lib.uh.edu/collection/1352973/item/489/show/476.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum. (1955-09). Facts Forum News, Vol. 4, No. 8, September 1955 - File 057. Facts Forum News, 1955-1956. University of Houston Libraries. Retrieved from https://digital.lib.uh.edu/collection/1352973/item/489/show/476

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum, Facts Forum News, Vol. 4, No. 8, September 1955 - File 057, 1955-09, Facts Forum News, 1955-1956, University of Houston Libraries, accessed January 23, 2020, https://digital.lib.uh.edu/collection/1352973/item/489/show/476.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Title Facts Forum News, Vol. 4, No. 8, September 1955
Alternate Title Facts Forum News, Vol. IV, No. 8, September 1955
Series Title Facts Forum News
Creator
  • Facts Forum
Publisher Facts Forum
Date September 1955
Language eng
Subject
  • Anti-communist movements
  • Conservatism
  • Politics and government
  • Hunt, H. L.
Place
  • Dallas, Texas
Genre
  • journals (periodicals)
Type
  • Text
Identifier AP2.F146 v. 4 1955; OCLC: 1352973
Collection
  • University of Houston Libraries
  • Facts Forum News
Rights No Copyright - United States: This item is in the public domain in the United States and may be used freely in the United States. The item may not be in the public domain under the copyright laws of other countries.
Item Description
Title File 057
Transcript dn$he Budget —Wide World Photo Senator Harry Flood Byrd. Virginia Democrat, is calling the signals for the Eisenhower administration in the legislative struggles over taxes and trade. Bul the direel debts I have mentioned are nol all our obligations. In addition. we have contingent liabilities totaling 8250 billion which the federal govern- Wenl has guaranteed, insured and otherwise- assumed on a contingenl basis. \" "tie eem predict lo what extent this con- Qngenl liability will result in losses Which must be paid by the federal gov- ernment. For example, sill billion of ibis con- trngenl liability is in some forty federal ''"using programs, and from recent disclosures "I grafl anil windfall profits in [he various public housing programs, ii ls evident thai a substantial percentage "f these contingent liabilities eventual!; "i;u become ei draft mi the Treasury. In addition lo the $280 billion in direct Federal debt, ami llu- $2.~,n billion in Contingent liabilities, wc have ein our hands ei Se»-i;il Securit) svsie-m guaran- feed b) the federal governmenl involving man) millions "I out- citizens, which is no longer actuarially sound. lhe ultimate cost of this s\slem to reasur, is slill unestimated, bul the T ''"I remains lhal when lhe income from Premiums imposed upon those who are Covered in tin- system is no longer -ul "i'-ni or ;e\eiileililc tn pa) lhe benefits, '"'ii regular tax revenue collected from "'"-. in .unl .mi of the system will be IK,,'I I" finance iln- deficienc) pACTS FORUM NEWS, September, 1955 Here are some of ihe evils of deficit -pending: The debt today is the debl incurred by this generation, but tomorrow it will be debt on our children and grandchildren, and il will be for them lo pay, both the interest and the principal. ll is possible' and in facl probable lhal before this astronomical debt is paid "11. if it ever is, the interest charge will exceed (he principal. Protracted deficit spending means cheapening of the dollar. Secretary Humphrey testified before tin- Finance Committee that lhe greatest single factor in cheapening the American dollar ha- I n deficit spending. Since I have been in the Senate, interest alone on the federal debt has cosl the taxpayers of this country more lliau 875 billion. Al present rales, on the federal di-lil eii ils presenl level, interest on it in the nexl twenty years will cosl taxpayers upwards of $150 billion. Since 1940 the federal governmenl heis borrowed and spenl a quarter ol a trillion dollars more than we hei\c collected in taxes. i- eeir by year, nearh in direct ratio tn deficit spending, the purchasing value of the dollar has declined. Beginning with a 100 cenl elolleir in 1940, lhe value of the dollar has declined lo o'l cents in 1954. As proof of the facl that deficit spending is directly responsible l.n cheapening the dollar. Iel mi' mention that in I') 12. w Inn we spenl $19 billion in excess .el revenue, lhe dollar in that one year declined 10 cents in value. In 1943, another big deficit year, the dollar lost .") cents more in value, and another 9 cents in 1946. From 1910 through 1952. an era of heavy deficit spending, iln' dollar losi 48cents in value, or nearl) ! cents each year, and il is slill slipping bul in a much lesser degree. Some men regard these fails and figure"- lightly, bul the loss of hall the- purchasing power nf its iiiinii'i in thirteen years should be ei serious warning to any nation. Cheapened mone) is inflation. I Dilation is a dangerous game. It robs creditors, il steals pensions, wages anil fixed income. Once started, it is exceeding!) difficult lo control. This inflation has been partially checked, but the value ol the dollar dropped slighlly ageiin in lhe past year. It would nol take much to starl up ihis dangerous inflation again. Puhlie ili-lii is nol like private debt. If private debt is not paid off. it can be ended by liquidation, but if public debt is not paid off with taxes, liquidation lakes the form of disastrous inflation or national repudiation. Cither is destruc* tive of our form ol government. Todav lhe interest on the federal .h-bl takes e c than lo per cenl ol our total federal tax revenue. Without the tre- mendous cost of this debt our annual lax bill could be reduced 10 per cent across llie- board. The interest charge would be greater if much of lhe debt was not short-termed wilh lower interest rates. Should this debt be long termed at the .Si \ per cent paid mi recent 30-year bonds, the interest would be nearh 15 per cent of the federal income. No business enterprise could survive such heavy interest out of ii- gin-- income. FEDERAL GRANTS TO STATES Since 1934 federal grants to stati - have expanded enormously in both cost ami functions. Thev slip in like mice' and siiein grow io the- size' of elephants. Ever) federal grant elevates the control nl ihe Federal governmenl and subordinate's the control and authority of the -tell.'-. Nothing is more true than the rule that power bellows the purse. When tic Federal government makes a grant it directs exactl) the manner in which the Funds an- expended, even though the stales parlialh contribute to the project. rime' eunl time again I have seen the iron hand of the federal bureaucracy with grants compel lhe states to do things the) .li.l not weint lo do. (.rowlb in Federal gretnls is indicated b) the fail lhal in 1934, twenty-one years ago. the total of such greints was S126 million covering eighteen programs. \e.w Federal grants total Si billion for fifty programs. This is an increase of ill!) per cent in programs and 2H00 per cenl in cost. These are the figures to dale. As to additional grants for lln- fulure. President Eisenhower, in his eulelress I'll the Slate of the I nion. proposed I" open up three- Pandora's boxes of new federal "handouts" lo the stale--. lhe- proposals by the President, if adopted b) Congress, would be the greatest increase in granls lee slate-.- vet undertaken ami the- longest step vet to federal paternalism. I iider the administration's road proposal a dumm) corporation, without ei-- sels and without income, would issue- I els l.n $2] billion, and Washington would lake- control of 10,000 miles ..i the bi'st roads in the 111 states. B\ legerdemain this $21 billion in federal agency bunds would be declared as not federal debl and would be excluded from the .l.-bi limitation fixed l>\ Congress. The interest would be $11 .."i billion, oi .">."> per cenl nl the Funds borrowed. It weis proposed lo pav the priui'ipiil ..I these bonds and the interest on them with permanent indefinite appropriations, which would remove the corpora Page 55
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