THE NEWS, CHAPEL HILL, N. C.
Where Your
Taxes Go
How Uncle Sam Spends
Your Money in Conduct
ing Your Business
By EDWARD G. LOWRY
Author “Washington Close-Ups,” "Banks and
Financial Systems,” etc. Contributor Political
and Economic Articles to Leading Periodicals
and a Writer of Recognized Authority on the
National Government’s Business Methods.
Copyright, Western Newspaper Union
II.
WARS EAT UP THE TAXES
When 1 set out to discover for you
where the money you pay as federal
taxes goes I did not have far to look.
It goes for wars, past, present and
prospective. Last year a little over 90
per cent of the national income went
that way. In the report of the secre
tary of the treasury submitted to con
gress in December, 1920, he remarks:
An analysis of government expenditures
for the fiscal year 1920, on the basis of
daily treasury statements, develops the
striking fact that of the net ordinary dis
bursements of $6,403,000,000 about 90 per
cent consisted of expenditures under the
following heads:
Purchase of obligations of for
eign governments $ 421,000,000
War department 1,611,000,000
Navy department 736,000,000
Shipping board 531,000,006
Federal control of transporta
tion systems and payments
to the railroads under the
transportation act, 1920 1,037,000,000
Interest on' the public debt 1,020,000,000
Tensions 213,000,000
War-risk insurance 117,000,000
Purchase of federal farm-loan
bonds 30,00'1,000
Total $5,716,000,000
Substantially all the expenditures
entering into this total, and a large
-share of the expenditures on various
minor accounts, represent burdens di
rectly traceable to the war, to past
wars or to preparedness for future
wars. These figures serve to indicate
the direction which sincere efforts to
reduce the cost of the government
must take.
Then I found Mr. Gilbert, the under
secretary of the treasury, saying:
There has been much idle talk to the
effect that the excessive cost of govern
ment is due to inefficiency and extrava
gance in the executive departments.
Without doubt there has been waste and
inefficiency in the various government de
partments and establishments, and much
can be accomplished, and has already
been accomplished, by the introduction
-of efficient and economic methods of ad
ministration and the elimination of du
plication and unnecessary work. It might
well be possible to save as much as
$60,000,000 or $100,000,000 by careful and sci
entific reorganization of the government’s
business.
The figures show that over 90 per
cent of the total annual expenditures
of the government are related to war.
Out of total expenditures during 1920 of
About $6,400,000,000, about 5% billions rep
resented expenditures directly traceable
to the war, to past wars, or to prepared
ness for future wars. Of this, about
•$2,500,000,000 went for the army and navy,
over $500,000,000 for the shipping board,
over $1,000,000,000 for the railroads, another
$1,000,000,000 for interest on the public debt,
almost $500,000,000 for purchase of obliga
tions of foreign governments on account
of their war expenditures, and the remain-
; der for pensions, war risk allotments and
. miscellaneous items related to war. An
I analysis of the expenditures of the first
j six months of the fiscal year 1921 gives
^similar results. The figures also show
vthat the total cost of running what may
be termed the civil establishment proper,
that is to say, the various government
departments, boards and commissions and
the legislative establishment, have not
much exceeded $250,000,000 even in the ab
normal war years.
I sought details. If more than 90
per cent of the entire disbursements
of 1920 went for past and prospective
wars, how much had we been spend
ing to keep the world safe for democ
racy? We are all familiar with .the
argument that the best way to prevent
war is to be prepared for war. I
thought I might find out whether that
was true. I went'back into the rec
ords and found that year by year,
• from 1834 to 1919 inclusive, the treas
ury department had kept an account
of the actual disbursements—not ap
propriations, mind you, but actual
money expended—of the War depart
ment, the Navy department and for
pensions. When I got all the figures
before me I couldn’t add them up.
In the bureau of internal revenue
they loaned me a machine and an
operator, and. so I know and can tell
you that from 1834 to and through
1919 the War Department actually dis
bursed $23,002,390,008.65. In the same
period the Navy Department spent
$6,907,369,032.84; and pensioners of
past wars got $5,634,079,694.23.
That is a thundering total of $29,-
909,759,041.49 for the army and navy
alone, leaving out of account the
$5,634,079,694.23 for pensions.
I will let you decide whether any
part of the twenty-nine billion dollars
spent for preparedness and for war
prevented our going to war or found
us prepared when we went to war.
The three items I have enumerated
are only ribs of the skeleton of the
cost of war preparation and activity.
I have not been able to excavate any
other detail figures. But it is known
that the war of 1812 cost about $133,-
703,880.
The cost of the Mexican war is esti
mated to have been $63,605,621.
The total cost of the Civil war, tak
ing the period from June 30, 1861, to
June 30, 1866, may be figured closelv
at $3,500,000,000.
The treasury in the winter of 1920-
21 estimated in a report sent to con
gress through the secretary that the
cost of the World war to us to that
date had been $24,100,000,000, exclu
sive of our loans to the allies and
other foreign nations.
So you see the cost of wars is go
ing up, no matter how much money
we Spend by way of preparation.
THE BURDEN OF TAXES
Before the war the government of.
the United States spent about one bil
lion dollars a year for all purposes,
including interest on the public debt.
In the fiscal year ending June 30. 1920,
the first full fiscal year after fighting
stopped, the government spent in
round figures six billion four hundred
million dollars. In the fiscal year 1921,
that is, up to June 30, 1921, it spent
$5,115,927,689.30, and in the fiscal year
of 1922, which will end on June 30,
1922, it will spend more than four bil
lion dollars, says Secretary Mellon of
the Treasury Department.
These figures include interest on the
public debt which amounts to about
one billion dollars, but include noth
ing for sinking fund or other debt re
demption. Including both interest and
sinking fund, the government will
spend more than four times as much
the fiscal year 1922 as it spent yearly
before the war.
These expenditures and these heavy
charges are a part of the price of vic
tory. Your whole present problem is
to curtail them. It concerns you to
know just how these immense sums
were gathered and how much you paid
and are paying toward them, for of
course we, the tax payers, the men and
women with jobs, the men and women
who have what the census calls gain
ful occupations, paid every cent of it.
It was our money until the govern
ment took it.
Let us examine the fiscal year 1920.
I have not the detailed account for
1921, but it was slightly less than the
year previous, as the year ending June
30, 1922, will be a slightly less burden
on us than the year preceding. Ac
cording to a careful analysis made by
the late Dr. E. B. Rosa, of the United
States bureau of standards, a govern
ment scientist who was deeply and in
telligently interested in the subject,
every man, woman and child in this
country contributes an average of
fifty-three dollars in taxes to the sup
port of the national government. Ac
tually it is nearer fifty-four than fifty-
three dollars, but I am taking the
smaller sum for the sake of the round
number. That is, the average family
of five persons pays $265 a year out
of its earnings to the federal govern
ment alone, in addition to what is
paid for state, county and city taxes.
The estimated average yearly income
of a family of five is something more
than $700. But before any of that $700
is spent $265 must be turned over to
the general government to run the
business of the United States.
The actual amount that each one of
us paid was $53.77. We paid it through
the medium of internal revenue taxes
and customs duties on imported ar
ticles divided as follows:
Per
Capita
Income and excess profit $37.20
Cigars and tobacco 2.77
Transportation and other utili
ties 2.72
Autos, candy, furs, jewelry, etc. 2.52
Beverages 1.86
Special taxes on capital stock,
etc 99
Estate inheritance 97'
Stamps on legal papers, etc 79
Admissions to amusements, etc. .77
Insurance and miscellaneous... .23
Total $53.77
The taxpayer ic next of kin to the
treasury. At any rate he is the first
person notified when the treasury
needs money, and he always has to dig
down into his jeans for whatever is
needed. Taxpaying, even more than
charity, begins at home. The boy’s
best friend is his mother, but the tax
payer’s only friend is himself. The
only thing that can be done for him is
to disclose as vividly as possible how
much his government is costing and
let him decide what he will do about
it. It all comes down to this: The
more money the government spends
through defective organization or ex
travagance, the less you have to spend
or save.
So much for the cost of the national
business we support. We are all mi
nority stockholders. The concern has
no other source of revenue than our
contributions. It doesn’t make any
money. In times like these, when al
most everybody feels that he gets too
little for what he sells and has to pay
too much for what he buys, it seems
to me the least we can do is to take
an active and intelligent interest in
this great common enterprise of ours
and make sure that it is well organ
ized; that it doesn’t waste or spend
extravagantly; that the employees are
paid an adequate wage and have
proper working conditions; that their
morale is kept high and their enthu
siasm in our interest unabated; in fine,
that as a business it shall be conduct
ed as efficiently and economically and
on as modern scientific principles as
any large private business.
Is it?
That is a question you must answer
for yourself after I have acquainted
you with the actual situation and con
dition.
Your Life Prospect.
White males, who have reached the
age of ten, can expect on the average
to live 50 years more. A generation
ago the figure was only 46 years. The
life of man has thus been increased
four years in about a generation, says
a leading life insurance company.
Woman’s gain has not been as great.
Her life expectancy is about fifty-two
years, a gain of a trifle more than a
year and a quarter. But she still leads
man. This prolonging of life, says the
insurance company, is the result of
campaigns of health, education and
public health service. That, and not
monkey glands, in the long run will
prove to be the road to an average
lifetime of one hundred and fif^y
years.
THE FINAISGE ACT
iGOMOIML
RULED INVALID BY SUPREME
COURT AND MUST BE RE-
PASSED BY ASSEMBLY.
CONSTERNATION IN HOOSE
Opinion of Supreme Court Read as
Contained in Communication From
Chief Justice Clark
Raleigh.
The municipal finance act as it has
passed the house is unconstitutional
and invalid, and it must go through
both bodies again. Complying with a
request from the senate, the supreme
court rendered an opinion read at
night session, holding that the act
would be unconstitutional as passed.
The senate, upon receiving the opin
ion, immediately started the bill
through again, and eighty-nine house
members, a number suffiicent to con
stitute a quorum, voted to remain in
session at least through Monday night
to insure proper passage again
through that body of th measure.
The possibility of the act being un
constitutional was suggesed in the
senate after the bill had passed that
body on second reading. An amend
ment exempting Madison county from
the act, thereby, in the opinion of sen
ators, making it a local and not a
statewide measure, was assigned as
the reason for its unconstitutionality.
The supreme court considered that
the amendment alone would be hard
ly suffiicent to render it invalid, but
the failure of the house to read the
amended bill over three times with
a yea and nay vote on the second and
third readings entered on the journal
would invalidate it.
Senator Lunston Long read the
opinion of the supreme court as con
tained in a communication from Chief
Justice Clark. The senate took up
immediately plans for starting the bill
back through, and sent a communica
tion to the house announcing the
court’s decision.
Consternation reigned in the lower
body for a few minutes after the re
ceipt of the announcement,, and a de
bate, featured by biting and jocular
remarks, occurred between a half
dozen members.
Contracts Let For Road Work.
Contracts were awarded for around
$1,310,000 of road work, principally
in the sixth, eighth and ninth con
struction districts, by the state high
way commission. The total length of
highways to be constructed under the
contracts is 100 miles, the types of
road being asphalt macadam and
gravel.
Among the contracts awarded were
the following:
Burke County—Morganton to Glen
Alpine, 5.24 miles of Topeka asphalt,
Southern Dray company of Asaeville,
contractors, $168,302.70; bridges also
to this company, $3,890.40.
Cleveland County—Shelby to Cleve
land Springs, 1.90 miles of Topeka as
phalt, Southern Paving company of
Chattanooga, Tenn., $54,814; bridges
to Z. B. Weathers, Shelby, $19,035.10.
Mitchell County — Spruce Prue to
Ledger, 7.04 miles of penetration ma
cadam, Porter & Boyd of Charlotte,
$199,132; bridges to L J. Chandler,
Virginia, Va., $18,146.
Henderson County — Horseshoe to
Transylvania line, 5.20 miles of gravel
road, Southern Davis Construction
company, of Greensboro, $26,312 50;
bridges to Asheville Construction com
pany, $8,607.90.
Rutherford County — Bridge over
Mountain creek, Austin Brothers Con
struction company, $5,215 80.
Clay County—Haysville to Georgia
state line, 5 miles of gravel road, E. A.
Wilson company of Knoxville, $33,-
383.60; bridges to W. T. Moore, Con
crete Products company, $16,048.50.
Macon and Swain Counties, between
Topton and Almond, 17.84 miles of
waterbound macadam, E. A. Wilson
company, of Knoxville, $284,070.30;
bridges to Southern Dray company of
Asheville, $28,803.60.
Wilkes County—Wilkesboro to Mil
ler’s creek, 6 miles of hard surfaced
highway, Porter & Boyd, Charlotte,
$110,349.80.
Union County — Monroe towards
Charlotte, on W. C. A. highway, 4.5
miles of Topeka asphalt. Redmon
Construction company, $112,604.80.
”= ■;—-r ' , , ^0
Filthy Lucre
Transformed
By REV. LEW W. GOSNELL
Assistant Dean, Moody Bible
Institute, Chicago.
TEXT.—Not because I desire a gift, but
I desire fruit that may abound to your
account. But I have all, and abound:
I am full, having received of Epaphrodi-
tus the things that were sent from you,
an odor of a sweet smell, a sacrifice ac
ceptable, well pleasing to God.—Phil. 4:17,
18.
Shakespeare sets before us with a
few strokes the apothecary, “in tat ¬
tered weeds, with
o ver wh e 1 ming
brows,” from
whom Romeo
would fain buy
poison. It was
against the law to
sell it, but Romeo
urged upon the
poor man forty
ducats, saying:
"There is thy gold,
worse poison to
men's souls,
Doing more mur ¬
ders in this loathsome world
Than these poor compounds that thou
may’st not sell;
I sell thee poison, thou has sold me
none.”
But our text sets before us the
thrilling fact that this poison, filthy
lucre, may be transformed into coin
current in the Kingdom of God. Paul
disavowed that he desired a gift, but
rather that “fruit” might abound to the
account of the Philippians. The late
Bishop Moule of the Church of Eng
land, a distinguished Bible scholar,
held that the word for “fruit” might be
translated “interest.” This is sup
ported by the fact that the context is
full of commercial terms. Hence,
there is very clearly set forth the fact
that gifts to the work and servants of
God, instead of being lost to the giver,
rather become interest accruing to his
account.
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John’s Discouragement.
Little John sat upon the stairs look
ing disconsolate.
“What’s the matter, Johnny?” asked
Cousin Isabel kindly.
“Well, you see, Cousin Isabel, they
let me hold the baby on my knee,
sometimes, though he can’t even hold
his head up straight. And they weigh
him every single day, but since they
began it he’s gained only two pounds
and three ounces. And I’ve just been
thinking that I’ll be an old, old man
before that fellow’ll be of any use on
the team.”
No Chance for North CaroFna.
Washington, (Special)..—-Chance of
a North Carolinian being appointed on
the interstate commerce commission
disappeared. President Harding told
Senator McKellar, of Tennessee, his
intention is to reappoint the old men
as their terms expire. If not, he will
not appoint a southerner, demands
from other sections having preference.
Representative Weaver urged the
first assistant postmaster general to
appoint Miss Bonnie Kate Reagon as
postmaster at Weaverville. She is the
first eligible. Mr. Weaver said if the
department followed out its system as
announced it could not fail to give her
the job.
He made public the following list
of eligibles for the office at Clyde:
V. H. Byers, Work P. Haynes and Joel
W. Shook.
Mr. Weaver introduced a bill grant
ing a $30 pension to Levi J. Tipton, of
Asheville.
Representative Doughton made pub
lic the eligibles for the Lenoir offices
as follows: John D. Matheson, John
C. Smith and A. M. B. Goodman.
Arguments in Automobile Case.
Arguments in the case of C. J. Kelly,
of Sanford; Major A. W. Hoffman, of
New York; George Scott, former mem
ber of the automobile squad in New
York; Frank Moran, of New York, and
Harry Craig, of Germantown, Pa.,
charged with conspiracy in the sale of
stolen automobiles, which has been on
trial in federal court here for the past
week, were begun, the taking of tes
timony having been concluded.
Postoffice Discontinued.
The Postoffice Department gives no
tice that the postoffice at Navassa,
Brunswick county, has been discon
tinued and that mail will go to Leland.
Delegates Can’t Make Trip.
Washington, (Special). — Senator
Overman, at the request of Leonard
Tufts, extended an invitation through
Secretary of State Hughes, to the
members of the arms conference, to
visit Pinehurst, but Mr. Hughes ad
vised Senator Overman that owing to
the pressing duties of the conference
the delegates have found it impossible
to accept invitations outside of Wash
ington, and requests Senator Overman
to express to Mr. Tufts the very deep
appreciation of the delegates for his
kind invitation.
To Hold Examinations.
Washington ,(Special).—The civil
service commission has been request
ed by the postofflce department to
hold an examination for appointment
of postmasters at Asheville and High
Point.
On January 14 examinations will be
held as follows:
Badin, salary, $2,100; Jackson, $1,-
400; Lake Junaluska, $1,100; Mayo
dan, $1,500; Moncure, $1,600; Mon
treat, $1,800; Newland, $1,100; Park-
ton, $1,200; Stantonsburg, $1,300.
State Has Highest Birth Rate.
Washington (Special).—North Car
olina has’ the laudable distinction of
having “the highest birth rate (31.7)
for the white population of any other
state for 1920,” according to a cen
sus report issued. California had the
lowest, with 18.3 per thousand popu
lation.
North Carolina stands third in the
birth rate of colored people; she la
exceeded by the District of Columbia,
where the negro flourishes, and Cali
fornia, where Orientals are increas
ing.
The average birth rate from 23
states covered was 23.3 per thousand.
North Carolina, therefore, is far
ahead.
The record for North Carolina was.
White births, 57,054, and colored 24,-
353, for 1920, and 51,832 and 22,022
for 1919.
The birth rate for whites last year
was 31.7 per thousand, and colored,
31.3.
South Carolina’s white birth rate
last year was 28.8, and colored, 27.7.
Would Fix Limit at 39 Cents.
Thirty-nine cents is set as the limit
of which counties may go in levying
taxes for the schools in a measure in
troduced in the house of representas-
tive by Matthew of Bertie, to answer
assaults that have been made upon
the administration of the schools and
to clarify the general educational sit
uation. The bill stipulates that no
mandamus will lie against the county
commissioners to force that body to
levy a tax in excess of the 39-cent
limit.
Adopts New Plan.
The State Board of Health, in ses
sion here, adopted as a permanent
policy the piecework system which
has been in operation by agreement
between county and state health au
thorities for five months.
This, according to Dr. W. S. Rankin,
state health officer, makes a radical
change in the relation between the
State Board of Health and the county
health departments. The new policy,
outlined by Dr. Rankin in a statement
recenty issued, is designed to more
adequately insure the wise expendi
ture of funds by both the state and
counties in public health work which
is of mutual interest to both state
and county and which is carried on
largely through county officers. This
change, he says, is also designed to
develop a larger degree of local in
terest, responsibility and control in
public health matters.
Forestry Experts to Meet.
The eleventh annual convention of
the North Carolina Forestry associa
tion will be held in Wilmington on
Friday, January 27, 1922. The pro
gram is being arranged so that sev
eral of the most important forestry
problems now before the people of the
state, such as highway planting, coun
ty co-operation in forest fire preven
tion, state or federal forest control,
etc., will be brought up for discussion
by some of the leading authorities on
these subjects.
Reward From Heaven.
Even now we find blessing in using
our means in the service of God. In
Acts 26:35 Paul preserves for us a
saying of the Lord Jesus which is not
found in the Gospels: “It is more
blessed to give than to receive.” The
favor of God upon His generous chil
dren is assured in Hebrews 13:16:
“But to do good and to communicate,
forget not: for with such sacrifices
God is well pleased.” And the “inter
est” abounds not only in this world
but in that which is to come, for the
Master will say: “Well done, good and
faithful servant.” He is a wise man
and a farsighted Investor who heeds
the words of our Lord: “Provide your
self bags which wax not old, a treas
ure in the heavens that faileth not,
where no thief approacheth, neither
moth corrupteth.”—Luke 12:33.
But not only does Paul use the com
mercial figure of “interest,” but he
speaks of the gift which the Philip
pians had sent him as “an odor of a
sweet smell, a sacrifice acceptable, well
pleasing to God.” His language com
bines the figure of the burnt-offering
of dedication with that of the peace-
offering of thanksgiving. In this met
aphor “all the sacred ideas of yielding
up precious things to God and of the
sacred fire that consumed the offering
are brought to bear o the prosaic ma
terial gift.”
Giving to God.
It is interesting to note that, while
the gift was sent to Paul, it was really
a sacrifice offered to the Lord. What
assurance this gives us that our benef
icences cannot go astray! Even
should the recipient prove unworthy,
or the money be mishandled, the gift
remains safe, so far as we are con
cerned, in the keeping of Him who
has accepted it at our hand.
Perhaps most wonderful of all is the
fact that our gifts of money may be
“well-pleasing to God.” It is beyond
our comprehension that the ever-
blessed God can be given pleasure by
any deed of man, but Holy Scripture
assures us it is even so. Luke tells us
of certain women who ministered unto
our Lord Jesus of their substance
when He was upon earth.—Luke 8:3.
How often have we wished we might;
have been with Him then, and brought
a smile to His face and joy to His
grief-oppressed heart, by our loving
ministries! How thrilling that this
privilege of giving Him pleasure is still
ours, although He is the Lamb in the
midst of the throne!
We are not surprised to find Paul
following the text with two verses con
taining an assurance and a doxology:
“But my God shall supply all your need
according to His riches in glory in
Christ Jesus. Now unto God and our
Father be glory for ever and ever.
Amen.”
Real Dilemma.
Parker—What’s wrong? You look
worried.
Streeter—I am. I wrote two notes
—one to my broker, asking him if he
took me for a fool, and the other to
Miss Golding, asking her if she would
marry me. While I was out somebody
telephoned “Yes,” and I don’t know
which of them it was!”
The man who “also ran” in a politi
cal race usually has an empty purse
as a souvenir.
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Takes Charge Near East Relief.
Morris A. Beale, asssitant State di
rector in North Carolina for the Near
East Relief, has taken charge of the
Raleigh headquarters of the organiza
tion. Claude W. Hooper, former State
director here, has been made regional
director with five states under his
superivsion. Mr. Hopper was in Ra
leigh on a visit to the local office. Ha
was returning from Charleston, where
he attended the meeting of governor#
this week to Richmond, Va., which ia
his headquarters now.
Love One Another.
Let us remembe. that just as the sin
of murder is wrong because It is a
defacing of God’s image, so love of
one another is an imperative duty,
because in loving a fellow-creature we
love the work of God, the redeemed
of Christ, one who is, or should be,
the temple of the Holy Ghost. If we
cannot love people as they are, let
us love them as they ought to be. as
they may be, and as we may help them
to become.—Selected.
World of Your Thought.
Put Philip II. of Spain in the
most beautiful gardens that had ever
been built on earth, and he remarks,
“It gave me content for two minutes.”
Put Bunyan in Bedford jail, and he
lives in spiritual mansions, and sees
the gleaming turrets of the Eternal
City. For. the world you really live
in is the world of your thought
I KING PIN
PLUG TOBACCO
Known as
“that good kind”
c Iry it—and you,
will know why
RAW FURS
Ship at once to
BACH FUR COMPANY
118-120 W. 27th St., NEW YORK, N. Y.
, They Pay BEST Prices
Free Bait to Trappers
Write Today How to Get It and for Price Liat
FROST PROOF CABBAGE PLANTS
Early Jersey, Charleston Wakefield, Succes
sion, Flat Dutch. By Parcel Post, Postpaid,
satisfaction or money back, 100—30c, 300—
76c, 500—J1.00, 1,000—51.75. By Express,
f. o. b. here, 1,000—51-30, 5,000 @ $1.20,
10,000 @ 51-10. Cauliflower, double above
prices. D. F. JAMISON, Summerville, S. C.
Make Your Home Moth Proof
Use Cedarene. Two-ounce can 25 cents.
CEDARENE CO., MARTINS FERRY, OHIO
FOR SALE—MIX COW PEAS
any quantity, 52.00 bushel, F. O. B. LANES,
s. c. s. w. McClary.
$30 Weekly—Pleasant work at home; address
ing, mailing circulars, distributing samples.
Either sex; experience unnecessary. Instruc.
25c. Add. Sales, Box 3801, Sta. D, Phila., Pa.
ASTROLOGICAL
HOROSCOPE
Send birth date and 10c. Tell your own for
tune, chart 15c. Fortuno Telling Cards, 51
value, sample deck 26c. Agents wanted. Macy
Publishers, 121 Norfolk, S. E., Roanoke, Va.