Where Your
Taxes Go
How Uncle Sam Spends
Your Money in ConducG
ing Your Business
By EDWARD G. LOWRY
Author "Ww'hlnzton Clonc-Up*," "Banin and
Financial patterns,” etc. ContriDtrtor Political
and Econcau e Articlca to I^adteu Period.cala
and a Wri*»r of Recoirnticd Authority on too
National Orrernmcnt'B Buauwat, "Methods.
Cott"" ight. Western
ITT.
MAGNITUDE OT BILLIONS
I have been throwing the inerndihle
figures at your heed. Xeitlier y«ii nor
hn visedy else has the faintest emccp
tion of what one billion dollars really
is. We speak familiarly of billions us
n commonplace, but most of us lite
ovt 'lives in terms of hundreds.
2'have shown you that every one
of os, man, woman and child, lri this
com try, paid last year $53.77 each
toward the support of the government.
course, every person does not pay
'exactly $53.77. A great* many pay
iwicre and some pay less; but those
who pay the most try to lake it out
"tif those who pay the least by increas
ing the prices of what they have to
Nell, or of services rendered or work
l performed, so that it averages out at
" $53.77. Some pay more than their
■ share, others pay less. This is called
an incident of taxation. The whole
point is that we all pay; that we pay
now more than we ever paid before;
and there is no present prospect of our
paying less for some years.
In this way we have ail paid our
share in the World war. The net oust
of that enterprise to date has been
$24,100,000,900, or. including our loans
to foreign governments, which have
not been repaid, $33,455,000,000. These
are ollinal treasury figures. Do not
let your eyes r.un over them lightly.
Thirty-three billion four hundred and
fifty live million dollars is an almost
incomprehensible sum. The cost of
running the national government is
now around $5,O0o.0"0.00o a year. The
experts say Hint for lie* next two or
three years the cost of the government
will not descend below about $4,000,
000,000 a year.
I want you clearly to understand the
Immensity, the magnitude, the over
whelming sir.e of such sums We
chatter about billions nowaday- with
out in the least knowing what is a
Milton. Let me try to bring It home
t«> you. it is now. roughly speaking.
1920 years since ttic* birth of t’hr st.
We do not know precisely and accu
rately at what hour and on what day
Christ was horn. But under the Gre
gorian calendar, according to which
we now reckon time, we have it
record of the days slt.ee January lirst
of the year one. Anno Domini. From
the beginning of the year one to Jan
uary 1, 1021, there elapsed about 701,
207 days, or. to reduce if further,
1(5,830,408 hours, which bo ng reduced
again, means 1.000,824.-isn minutes.
J will ask you to remember that the
whole history of the modern world
front the first second of tlit* year one
to the last second of the year 1020
has been compressed into 1,009,824,480
minutes.
Now let us suppose that with the
permission of the Homan authorities
the United States had established a
disbursing officer tit Jerusalem on the
first day of the year one- with instruc
tions to pa> out $5 a minute day and
night, Sundays and holidays included,
right down through the centuries to
New Year’s day, 1921.
Suppose he had been given $5,6.80.
005.700 to start him on his long spell
of spending. That is one estimate of
the sum that it cost to run this gov
ernment In 1920. On the morning of
January 1, 1921, this mythical disburs
ing officer, giving money away at the
rate of $5 a minute, would have spent
only $5,049,122,400, and would still
be one of the richest men In the
world, for he would have left on
hand $630,883,300 of the original sunt.
Paying out at the rate of $5 a minute
for more than 1900 years, he would
not have kept pace with the cost of
upkeep of this government for the one
single year 1920.
Suppose tills imaginary government
spender had been authorized to pay
out at the rate of $211 a minute through
the centuries. He would not have
finished, on January 1, 1921, paying
for our share of the cost of the World
■war by some $784,03t»,iX!0. He would
ihave that much left over after paying
•out $2:1.225.UfJ3.(MO. He would have been
■paying out nearly -40 cents every sec
ond the clock ticked for more than 19
ecu furies without being able to d>
charge our share of the World war
oost.
Ho you ever bother your head about
ttiofte bushels and bushels of dollars
that you contribute to the support of
the government? You earned them.
Vm I snow whether they came insily or
nyf- Do you know where they go
niter they leave yon, how tbev are
whether wisely or foolishly?
11 s money, contributed for ibe
P'otHu- ami economic conduct of your
usiness. There is no such tiling as
government money. The government
never earned a cent.
1own the government nfid J'"H
^"Il'oit it, r«,ut |t is merely adminls
h.v men or your selection. I
U a '',,Vs been puz/.l d about why
>u . o not take an active and eager
,I,S 1,1 what becomes of your
uione\ tbiii ,, ,
,, "*r l.uy in taxes ,
tames ' B> °n aml Bct down t0
WHERE YOUft MONEY GOES
I am indebted to the lute Dr. E. li.
Rosa, of the ^United States bureau utf
standards, whose analyses of govern
ment expenditures l have already
quoted In these articles, for the fol
lowing comprehensive survey of how
the taxes you pay to the government
are apportioned in expenditures. It
will give you the clearest and best idea
of where your money goes. For his
purpose Doctor Rosa took the actual
appropriations for Uie fiscal year 1920,
amounting to a fetal of $5,6S6,005,706,
■nr given in the regular supply bills and
'three deficiency Dills prior to May 1,
llCU. For convenience he divided the
purposes for which this money was
spent into six groups as follows:
Group I. ‘Obligations arising front
recent amf previous wars, Including
interest on the public debt, pensions,
war-risk insurance, rehabilitation ami
care of soldiers, deficit in the opera
tion of railways, expenditures of the
shipping board, European food relief
and Uie bonus to government employ
ees to cover partially the jar roused
cost of living due to the war, -a totui
of $3,855,482,580.
Group II.—War and Navy depart
ments—expenses somewhat above c.
permament peace-time basis—$-1,434,
138,677.
Group III.—Primary governmental
functions, including congress, Presi
dent and White House staff, courts
and penal establishments, departments
of Justice, state, treasury, interior,
commerce, labor, interstate commerce,
and other commissions, one-hulf the
District of Columbia, including all the
necessary functions of government
other than defense, except the com
mercial activities of Group V and the
research, educational and develop
mental work of Group VI—*$181,087,
225.
Group IV.— Public works, Including
rivers and harbors, public buildings,
reclamation service, post roads, na
tional parks and railway in Alaska—
$168,208,557.
Group V.—Commercial or self-sup
porting activities, including the post
oflice, land office, Panama canal and
housing corporation, which, taken to
gether, earn their expenses.
Group VI.- Research, educational
I and developmental, including the wide
! range of work of the Agricultural de
, partment, geological survey, bureau of
I mine., coast and geodetic survey, bu
i renu of standards, bureau of fisheries,
! bureau of foreign and domestic com*
| merce, bureau of labor statistics,
| women's and children's bureaus, voeu
; ttonal education, colleges for agricul
ture and mechanic aits, library of
congress, Smithsonian Institution and
the publi health service—$57,(193.661.
Total groups 1 to VI- $5,686,005,706.
Summary. Per
Cent
Group I — K\p-J;ditur«3
arising from rrent
anil previous war*.. .33,855,432.5S5.60 6T 81
Group !1 War anti Navy
departments . 1,424.13:'. B76.iT 30,02
Group 111- Primary gov
ernmental functions.. lvi.0feT.2CT.41 3 19
Group 1V-Public works 16S,203,567.40 2,».
Group VI Kestaroh, ed
ucational and devel
opmental . 67,093,060.93 1.01
Total ...jo.os'i.txs.iOf 97 loo.oo
Tin* first two groups together
amount to 5)2.8 per cent of the total; >
public works amounts to It per cent,
primary governmental functions 3.2
per cent, and research, educational
anil developmental work, 1 per cent.
The population of the country being
about 1 H),0tK),000, the total budget is
about fifty dollars a year per capita,
of which fifty cents a year per cap
ita is expended for tlv wide range of
research, educational and develop
mental work included in Group VI.
“That is, of the fifty dollars a year
per capita collected for all purposes,
a dollar and a half a year per capita,”
Doctor Rosa went on to point out,
“was spent for what is here called ;
primary functions of government; j
nearly as much more was put Into pub- |
lie works, and fifty cents a year was |
put hack into research, educational !
•and developmental work, to promote
scientific research, to increase produc
tion and efficiency, to develop wealth,
to promote the public health and to
conserve our natural resources. That
is a very small part of the total—
hardly enough to he regarded as a
burden on the nation.
“Indeed, one Ts led to wonder
whether the total burden of taxation
; would not be lighter If the expendi
ture for scientific and developmental
work were increased; If, far example.
It were one dollar a year per capita
instead of fifty cents. In other words.
If $110,000,000 were expended annu
ally for this creative and productive
! work, would it not he easier to collect
the five and a half billions for other
: purposes?”
The big money, of course, goes for
war. past, present ana future, and
that Is where the saving must be made. \
Remarkable Whisker*.
A hnir-raising adventure is recount- ,
«! by a London actor, Arthur Hour- |
chier, who once, being cast for the
part of llenry VIII. determined tr grow
a heard suitable for the role. He took
a three-weeks’ vacation and retired Into
darkest Cornwall upon this mission,
emerging at the end of the period
with considerable progress visible.
However, it seemed best to repair to
a hairdresser for u little hastening
treatment. Ail went well until one
week-end at Northumberland, when
Mr. Bourehler decided to bathe In the
sea. Alas for the chemistry of ocean
waters mingled with hair tonic—his
whiskers when he next beheld them
were a dazzling green! He returned
to London in haste, with head bowed,
and before the play was presented
the hairdresser was able to apply
counteractive chemicals enough to give
tilm a less sinking appeal uu>.«.
1—Ambassador Jusserand speaking at unveiling of .jeauiie u'Arc monument m Washington. 2—Children
from the East End of London going to Buckingham palace with gifts for Princess Mary and tier tiance. Vis
count I.ascelles. 3—Arthur Griffith, elected head of the Irish provisional government. 4—George Wharton
Pepper of Philadelphia, appointed senator to succeed the late Boies Penrose.
NEWS REVIEW
Briand Resigns. His Arrange
ments With Lloyd George
Being Opposed.
CANNES PRCGRfiM iS UPSET
Poincare Invited to Form New French
Ministry—May Fight German Mora
torium—Senate, By Ciosc Vote,
Seats Newberry of Michigan,
With a Rebuke.
By EDWARD W. PICKARD
FRANCE spilled tl)(“ beans last week.
*• lirinmi and bis cabinet are nut.
Poincare is funning a new ministr\
with himself as its head. All the
(K ings of the meeting of the supreme
council at Cannes are nullified, at
least for the present. Plans for the
economic and financial conference
may have to lie revised. The Ger
mans probably will he called on by the
French to make the reparations pay
ments when they are due or suffer the
penalty.
Lloyd George at Cannes had agreed
that Great Britain would make a
treaty guaranteeing France against at
tack by Germany, provided, however,
that the French ministry of marine
and the British admiralty should reach
•i complete agreement on submarines
and other naval craft, and provided
also that the French and British gov
ernments should make their foreign
policies conform, (“specially in the near
east. He required, too, that France
co-operate in restoring world econom
ics and finances and agree to deal
with Soviet Russia. These conditions
all meant yielding by France to
British policies and at once a storm
of opposition arose in Paris. Briand
hurried to that city and after telling
the cabinet all about what he had
done and engaging in a heifted con
troversy with President Millerand,
went ltefore the chamber of deputies
and presented the entire program, tell
ing its members they could take it or
leave it. Then lie bluntly announced
the resignation of the ministry with
out waiting for a vote.
Poincare, the main point of whose
policy is "Germany must pay," was in
vited to form a new cabinet and got
busy at once. It was understood that
Count Lasteyrie would he minister of
finance. He recently investigated con
ditions In Germany and believes tin'
Germans can pay the reparations with
out a moratorium provided thefr bud
get Is properly balanced and sufficient
taxes are imposed to bring their taxa
tion totals up to the level of those
paid In France.
In all the European capitals and in
Washington there was something akin
to consternation when the news from
Paris was received. The conference at
Cannes automatically came to an end.
Tin* American government, which laid
not decided whether or not to accept
the invitation to take part in the
Genoa conference, halted consideration
of flic question until there are further
developments. The German cabinet
saw the ehanee for a moratorium fail
ing and was correspondingly despon
dent. The English were reticent hut
plainly indignant and relations he ;
tween them and the French, severe!;. ' .
strained for several years, were r or
m proved.
THE allied supreme council deckled i
that an economic conference to
deal with the restoration of Europe
should he held In Genoa in March,
and that both Germany and Itussia
should be Invited to send representa
tives. No sooner did this news reach j
Moscow than the soviet government <
hastened to accept the invitation that |
had not been formally extended, i
Foreign Minister Tchitcherin wired the i
council that the central executive com- t
mb tee would proceed to select the i
delegates and would give them the 1
most extended powers. Of course i
ihero was no doubt that Germany would I
accept the invitation of the council, l
Biel the Japanese delegates to the t
Washington conference announced
that Japan also would be represented.
Already steps have been taken to
start the rehabilitation of Europe. The
economic committee *f the supreme
council lias decided upon an Interna
tional corporation with a capital of
£2.000,000 (about $s,oo0,000) with its
seat in London and with a board of
directors nominated by aliiiiated com
panies in each interested country.
These Countries, including the United
States, will organize corporations for
promotion only, with a combined capi
tal equivalent to £20,000,000 (about
$80,000,000). These corporations will
serve as mediums for credit trans
actions and to facilitate the activities
of private enterprises in ail countries
where the business field now is ob
structed by lack of credits and dis
organized finances. This plan “pre
supposes the organization of affiliated
companies in Germany as well as in
tile United States.
C'iNAL formulation of the naval
* limitation agreement in the Wash
ington conference was delayed by sev
eral matters. One was a difference
of opinion as to the methods of scrap
ping the 68 capital ships that are to
be given up by the I'nited States,
Brent Britain and Japan. Six op
tional methods are prescribed, and
Mr. Balfour objected to the proposi
tion of Mr. Hughes that the bulk of
the retired slops be destroyed ab
solutely. The British were not will
ing to say yet what tonnage of the
eliminated vessels they would convert
to peace time uses. No doubt was
felt that tills dispute could be ad
justed amicably. Another cause of de
lay was Baron Kato’s desire to get
further instructions from Tokyo con
cerning the agreement to maintain the
status quo of Pacific ocean naval
bases and fortifications. The question
was as to what Japanese islands
should be excluded as comprising
“Japan proper.”
Negotiations regarding Shantung
were resumed last week by the Jap
anese and Chinese delegates and it
was predicted an agreement would be
reached before long. Consequently
the delegates of all nations in the con
ference began drawing up a nine
power treaty dealing with far eastern
affairs and especially with Chinese
questions. It is believed this will de
lay the adjournment of the conference
until tin* end of the month.
r~\AIL E1REANN having accepted j
tlie Irisli peace treaty, the purlin- |
ment of southern Ireland last Satur- i
day completed the action by formally I
ratifying the pact, and the Irish Free |
State is in process of being con
stituted. Kamon de Valera resigned
an Monday as president of the Irish
republic and h!s re-election was
moved. The motion was lost, 58 to
it', and for a few moments De Valera
appeared as a really great man, de
claring lie would loyally accept the
decision, would do all he could to
tvold embarrassing the new govern
ment, and would even help It when
hat was possible without sacrificing
:ds principles. Later the Sinn Fein
rreconcilahle women persuaded him
o modify this generous position, and
lie chances of unity in the ranks faded
iway.
Next day after a message of con
trol ulution to Ireland from the pope
lad been read, It was moved tlmt
Vrthur Griffith be elected president
►t the Dull and a hot debate ensued, j
•'iim 1 ly De Valera and Ids supporters 1
calked out of the hall and the 05 I
'cmaining delegates on.udmously elect- !
•d Griffith, 'I he new [(resident at j
'iic announced that ids cabinet would 1
>e as follows; Min ster of finance, !
ilh'iiael Collins; Foreign minister,
leorge Cavan Duffy; Home minister,
•million J. Duggan; Local government,!
Yilliani Cosgrove; Economic u flairs.
5ryun O’Higgins; Defense, Uichurd
ifulcahev. Tliese, then, are the men
vho will constitute the provisional
;ovenment of the island to which the
onduct of affairs will he turned over
iy the British authorities as rapidly
s possible. The bolters returned In
he afternoon and De Valera stated,
hough he considered Griffith’s position
mpossihle, he would do nothing to
inmper him so long as he did not
ppeur to be subverting the republic.
,atcr De Valera told a correspondent
hat lie would refuse to recognize
n> government but the Irish republic
oven if it was set up by vote of the
people of Ireland, because lie was
satisfied that such a vote would not
!»' free, but would be taken under
i coercion of a threat of war.
Already the British have removed
tlie barbed wire and sandbags with
which Dublin Castle was protected and
they are transferring the records to
London, Amnesty was agreed upon by
the two governments and all Irish
prisoners, including {hose condemned
to death, have been set free. In a
word, the English are evacuating Ire
land as rapidly as they can, and they
seem mighty glad to get out.
'T' RTMAN II. New! rry Is right fully
I'nited States senator from Mich
igan, but be spent too much money
in winning the place. Such is the de
ni si on of the senate, readied by a vote
of 40 to 41. The Democrats were solid
ly against Newberry and nine Repub
licans voted with them to oust him.
Rut the day was saved for him by the
addition of a clause to the resolution
seating him, criticising the acknowl
edged expenditure of .$105,000 in his
behalf and condemning the lavish use
of money in political campaigns. This
brought into line a number Repub
licans who had been wavering. Sen
ator La Folietto of Wisconsin inti
mated that lie would reopen the case
at some future date.
Mr. Newberry appeared to speak
in ids own defense, breaking t lie
silence that lie had maintained for
the three years since his election.
He read a carefully prepared address,
the substance of which was that when
the Michigan primary and election
were held lie was absent from the
state performing his duties as a
lieutenant commander in the navy;
that he had no personal knowledge of
the expenditure of money by his
friends in bis behalf, and that lie was
astonished and grieved when later lie
learned that about $11)5.000 had been
spent in securing his nomination and
election. He closed thus:
“As God is ray witness, I am not to
this day and hour conscious of having
done, in connection with either the
primary campaign or the gehernl elec
tion in 1918, a single net that was or
Is in any way unlawful, dishonorable,
or corrupt, and this I say to the
senate without reservation or qualifi
ention.”
C KXATOU PENROSE’S Boat has
^ been filled Ijy tlx* appointment of
George Wharton Pepper of Philadel
phia, and this selection by Governor
Sproul has met with general approval
Mr. Pepper, who Is a lawyer of dis
tinction has been prominent in the
councils of thi> Republican party, but
has not before held public office. He
will be a candidate for election for the
complete term In November.
In accordance with the rtile of
seniority. Senator McCumber of North
Dakota has been made chairman of
the senate finance committee to suc
ceed Penrose, and the vacancy on the
committee was filled by the selection
of Senator Frelinghuysen of New
Jersey. That committee is still work
ing on the tariff measure, especially
the American valuation feature. A
delegation of southerners appeared
before the committee to tell it that
southern business men had become
convinced that prosperity was pos
sible only under a high tariff.
/CHAIRMAN FORDNEY of the
^ house ways and means committee
announced the administration's plan
for a soldiers’ holm's. It provides for
the payment of <:i«di bonuses from the ,
interest on the * 11.(00.000,000 allied]
de i to the United States a* soon
it. or part of if i« •cftindetl into i- .
ter. i obligation- the fntore*
not sufficient, tie proceeds of the '
salt* of part of the securities to the
public will be used for the purpose.
A NE of the most important court
decisions ever won by labor was
that rendered by Justice Wagner of
the New York supreme court, en
joining the garment manufacturers
from combining to enforce a 49-hour
week and a piece work system. This
wits the first time a labor union has
Invoked legal action to restrain em
ployers from breaking a contract.
Suits for several million dollars, repre
senting wages lost by the garment
workers who have been on strike for
two months, will IV begun nf once
I
j IMPROVED
ROADS
WAR SUPPLIES FOR HIGHWAYS
So Far Approximately $150,000,000
Worth of Surplus Material Hat
Been Distributed.
(Prepared by thf* t'ntted State* Department
of Agriculture.)
Approximately $150,000,000 worth of
surplus war materials, turned over by
the War department to the Depart
ment of Agriculture, were distributed
throng!) tin* bureau of public roads to
tiie various states for road-building
purposes up to November 1 last.
Fader the Wadsworrh-Kuhn bill this
surplus war material is sent to the
states with the sole provision that it
la1 used only for road-building pur
poses. A vast accumulation of ma
chinery, equipment, supplies and mo
tor vehicles that was to have been
used in France lias thus been diverted
to a useful peace-time purpose.
Included in the supplies distributed
among the states are 27,108 motor
vehicles, mostly trucks; 172 locoino
! fives of various sizes; 25,000 gross
j tons of rails; more than 4,500,000
j pounds of powder; and nearly 10,000
tons of TNT.
A compilation showing total deliv
eries of war material to the various
slates up to July 1, last, places (he
value of machinery, equipment and
i supplies so delivered at $30,048,779; of
! motor vehicles, $74,730,508; and of
! spare parts, at $11,731,424. The total
! value of deliveries to the states up to
i that date was $117,110,771. That fig
ure did not include material to the
j value of approximately $11,000,000,
which was retained by the Department
of Agriculture, largely for forest road
Army Sectional Bridge Erected Over
Davidson River, Pisgah National
Park.
work, which is not done by the states.
Also, it Is believed that the states have
received, in addition to the amount
above mentioned, approximately $f»,
000,000 worth of material shipped by
the War department from (lie various
army camps and not reported by the
states as delivered.
The value of deliveries of surplus
war material for road-buildinjr pur
poses to tbe states is in detail as foi
lows:
Alabama .$ 2,3S7,740t
Arizona . 2,041,401
Arkansas . S.CjsloUO
California . 3,687,500
Colorado . 2 527,640
Connecticut . t,43.500
Delaware . 412,U*>
Florida . 1,ISO.900
Georgia . 4,271,600
Idaho . 1,474,000
Illinois . 5,462,000
Indiana . 2.942,920
Iowa . 2,871,000
Kansas . 2,581,600
Kentucky . 2.011,800
Louisiana . 1,472,100
Maine . OGkaOO
Maryland . 1,056,160
Massachusetts . 898.800
Michigan . 4.648.3*)
Minnesota . 3.190,100
Mississippi . 3.273,320
Missouri . 3.669.800
Montana . 2.400,400
Nebraska . 3,.;i7,660
Nevada . 1,112.300
New Hampshire. 412,500
New Jersey. 1,617,900
New Mexico. 2,133,440
New York. 5,509,520
North Carolina. 3.083,920
North Dakota. 1,447,360
Ohio . 4,194,900
Oklahoma . 2.112,000
Oregon . 1,662,000
Pennsylvania . 4.384,600
Rhode Island. 229.900
South Carolina. 1,768,820
South Dakota. 2,3€8.M0‘
Tennessee . 3,156.500
Texas . 7.101.240
Utah . 1,333,500
Vermont . 529.100
Virginia . 2,920,800
ashington . 1,391,600
"est Virginia. 2,£S4,4<t>
' is main . 3,-142.000
\\ j oining . 1.230,900
Total . J117.110,751
Signs to Guide Motorist*.
Three wordless sigh' to guide mo
torists have been adopted for Massa
chusetts highways. Danger points art'
marked by three diagonally parallel
lines, nn intersecting road by a T laid
on its side and a cross. The warnings
will be placed 200 feet from the points
Indicated.
Work in Pennsylvania.
Pennsylvania constructed 61,‘> mile*
of modern durable type highways ’hla
|rui, Ulttiiv UK Hwit* » * Cvv* -
*