Uncertain Billions

The new budget sent by the President to Congress was $13 billion below last year's whopper, but it was no time for the economy-minded to cheer. The budget was still an astronomical $86,767,000,000, and it was less than last year's because the U.S. had finished building most of its war plants. An Allied victory in Europe might cut the budget by billions; a renewed show of German strength might raise it by billions. But Franklin Roosevelt refused to be prophetic.

Amid the uncertainties, one grim certainty loomed. The cost of caring for war veterans was already rocketing: at $2,623 million it was more than double last year's figure. Major items: pensions, $1,080 million; life insurance payments, $1 billion; education and loans, $295 million; hospitals, $85 million.

Budget Director Harold Smith had reckoned that by mid-1946 the U.S. would owe its citizens and institutions $292 billion on Government borrowing. This was nearly $61 billion more than it now owes them, $32 billion more than the law allows. Franklin Roosevelt served the obvious notice that during the year Congress would be asked to raise the U.S. debt limit, make more U.S. borrowing legal.

If the new budget was not substantially changed by what happened on the battlefields, by mid-1946 the U.S. would have spent $450 billion on World War II, fifteen times the $30 billion that World War I cost. But, for the present at least, taxpayers were assured that no new taxes or substantial revisions of present rates would be asked.

This file is automatically generated by a robot program, so reader's discretion is required.