European Stars and Stripes (Newspaper) - July 17, 1959, Darmstadt, Hesse The stars and stripes Friday july 17, 1959 blame it on Alexander Hamiltons National debt dates Back to revolution 6y Charles Stafford Washington a Alexander Hamilton first Secretary of the Treasury believed a Little debt was a Good perpetual debt theorized Ham Ilton would assure the nation Good credit rating and a permanent group of Bond holders. He Bor rowed Money to get the new government on a firm financial foot ing thereby giving birth to the National Hamilton s time until the present Secretary Robert b. Ander son the debt has grown prodigiously though there have been Short periods of debt reduction. In fact there was a time when the nation was Young that it Man aged to shed All Gallatin who succeeded Hamilton looked at the 1801 National debt of $83 million and set a twin goal of debt and tax reduction. By 1811, he had Cut the debt to $48 million. With income flowing in from the Sale of Public lands the National debt was completely wiped out by 1835. But absence of debt proved not to be a guarantee of financial stability. A per fed of Prosperity was climaxed by the panic of 1839, and then depression settled Over the the civil War the debt went up but was coming Back Down again in 1870. World War i sent it upward from $1,146,939,000 in 1910 to $24,299,321,000 in 1920. During the prosperous "20s, the debt declined Only to Rise again during the depressed 30s. World War ii was the skyrocket that carried the debt to the Heights where it is today. The1940 debt was Only $42,967,531,000. On feb. 28, 1946, it reached its wartime High of $279,214,000,000. The lowest it has gotten since the War ended was on april 30, 1949 $251,530,000,000. Now totalling almost $286 billion the debt is sure to go higher. The government had a deficit of More than $12 billion during fiscal 1959, the largest in peacetime history. Congress has raised the Deb limit to $295 billion for next year. There is Little or no Chance of reducing indebtedness in the next year or so says Robert e. Mer Riam the president s Deputy. Assistant. We will be fortunate to hold the line he says. Two things Are combining to keep the debt rising. With expenses exceeding income the Treasury the world s largest Borrower must borrow Money to meet the government s needs. On of the largest expenses incidentally is interest on the National debt which now totals More than $8 billion a year and is the second largest item in the budget. Secondly there is a fear of inflation. Investors refuse to invest in Long term government Securi ties partly because these would depreciate in value if there were a wave of inflation. Uncle Sam is caught in a vicious Circle. Unable to obtain less inflationary Long term Loans he must go to the Banks for More inflation Ary Short term Loans. President Eisenhower and Ander son believe the Only Way out of the dilemma is to balance the budget and increase interest rates in Border to obtain Long term Loans. And if a solution in t found what then sen. Harry f. Byrd a Aan ardent proponent of governmental Economy warns Whert governments become in solvent their Money becomes worthless and they go through a revolution wringer. The nature and the process of such revolutions May vary but invariably the form of government is changed. There is no reason to think free Enterprise democracy As we have known it would what would Alexander Hamilton say viennese play it Cool in the Danube the Beautiful Blue Danube looks More like sardine can As viennese crowd into a bathing area to escape the discomfort of the hottest Day of the year. Topi photo Ike sure hell get program enacted Washington a president Eisenhower has expressed Confidence All necessary legislation will be passed by Congress despite controversy Over his veto of some democratic sponsored Bills. He said he believes there will Bea meeting of minds Between the executive Branch and Congress an the country to get the needed Bills passed in this session. Or. Eisenhower told reporters Michiko believed expecting japanese Palace announces Tokyo up Crown Princess Michiko is believed to be expecting the Imperial Palace announced. The Petite 24-year-old Michiko married Crown Prince Akihito april 10 in a match that broke husband glued to to wife signs off in s Angeles up Tele vision actress Caroline Van Dyke was awarded a divorce from he husband Bernard Goetke in when she testified he was a to addict from the minute he got Home at night he was glued to that it she said. I even had to1 serve his meals Jashed the judge before Grant � ing the decree Don t you Ever k to yourself fever answered miss Van 2,600 years of tradition by bringing a commoner to the threshold of the japanese throne. Emperor Hirohito and Empress a g a k of Akihito s father and Mother had seven children. The first four were girls one die followed by Akihito Prince Yoshi and Princess Suga who is now engaged. V although the three oldest Daugh ters Are married Only one has Given the Royal family grand children. Princess Teru 33, has three boys and two girls. She is married to Morihiro Higashi Kuni a former Nobleman but now a salaried employee of a Coal mining company. Actor s yacht wrecked Darwin Australia a John Calvert an american actor said he had wrecked his yacht sea Fox on Elcho Island. The ship could be a total write off he said. That presidential relations with a Congress dominated by the opposing political party is no bed of roses. But he said he is maintaining personally Friendly relations with democratic leaders of both houses. The president said that while he has been accused in some quarters of trying to govern by veto the number of Bills he has vetoed Falls far Short of the total vetoed by some previous presidents. Or. Eisenhower was asked about a possible Compromise which would permit the interstate Highway construction program to continue. He has asked for an increase of 1%cents a gallon in gasoline taxes to keep the program goings House democrats have declined to go along with this idea but have been talking about a one half cent raise instead of 1. V v v Denmark oks entry into Copenhagen a the Dan ish parliament has endorsed Den Mark s entry into a. Free Trade Earith six other countries headed by Britain. Vote gave the government mandate to continue negotiations with the outer free Trade nations Britain Norway Sweden Switzer land Austria and Portugal i Stockholm later this month. France in the Black first time since War Paris a the French treas Ury is running a surplus and May not need to launch a loan this year finance minister Antoine Pinky has told the cabinet., said that internal reserves Rose by $405 million during the first five months of 1959. Much of the Reserve came from subscriptions to savings Bonds he reported. Since the War the government has been forced to hold a Bon drive at least once every year to cover running expenses. This can be avoided this year Pinky said if hemisphere Bank okd by Senate Washington a the Senate has passed and sent to the House a Bill authorizing . Membership in the new billion Dollar inter american development Bank. It authorizes appropriations by Congress totalling $450 million to help create a financial institution devoted to the economic develop ment of latin America on a cooperative basis. The . Would contribute $350 million to Purchase 35,000 shares of capital Stock in the Bank and $100 million in subscriptions to a fun for special operations. Business picks up As expected in the coming months. The minister declared that French reserves of Gold and foreign currencies totalled $1,633,800,000 on june 30, in addition to the Bank of France s Gold holdings of $589.4million. Optimism justified information minister Roger Frey who relayed the figures to report ers added for the first time in six months it can be said with certainty that the policy of recovery is bearing its fruits. In a general Way optimism is justified but it is Neces sary to remain prudent since the recovery is too recent and its foun Dation is still dead chickens hurled to test windshields Weybridge England up the Vickers Armstrong aircraft co. Is testing the strength of its new Vanguard Airliner windshields by firing four Pound dead chickens at them at speeds reaching 450 Mph. So far the company announced the windshields have stood up Well in the tests designed to counter the buffeting they will get in serv ice from Birds crashing into then Ion take offs. European edition these ripes army Navy air Force col John d. Nottingham Usa editor in chief it col t. J. Cunningham jr., Usa asst editor in chief Nathan j. Margoli managing editor Jack Ellis sports editor Homer a. Cable Fea ure editor Elmer d. Frank .4.-. Production manager England South Ruislip a c Wallow 4300 -. Ext 471 or 472. France Paris Balzac 5400 c ext 468 directory of news bureaus Germany Darmstadt newsroom c 75366 ext 16, Stuttgart c 84215 Spain Madrid 123 fue Carral bldg. C 22 82 90 or 22 83 90 it fuencarral209 armed forces circulation service Europe Sydney Label directory of England Brandon Lakenheath a m 4.3 London Busby Park abm ext 115 or Kingston c 6473 Oxford Fairford a m 145france chateau Roux m 39-98, la to Paris c Balzac 54-00 ext beymanoir147 Italy leghorn Darby m 1465 Spain. Madrid. 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