Administration's Attitude on Debt and Credit
The Drive for economic recovery initiated by the Roosevelt administration has led to government spending on a scale never before attained in time of peace. The large borrowings necessitated by this program had. before the close of the fiscal year 1934, wiped out substantial reductions in the federal public debt effected since the war and raised the total of that obligation to a new all-time peak. Not only did the federal government undertake huge expenditures on its own account, but through the public works program it induced states and local governmental subdivisions to in cur additional indebtedness for the purpose of providing work for the unemployed. Federal funds were likewise made available for a wide variety of other purposes, ...