About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

183 Annals Am. Acad. Pol. & Soc. Sci. xv (1936)

handle is hein.cow/anamacp0183 and id is 1 raw text is: FOREWORD
TWELVE years ago, the American Academy of Political and Social Science
issued a volume which addressed itself to the question What can be done to
secure competency and economy in the public business? (Competency and
Economy in Public Expenditures, THE ANNALS, May 1924.) Of all the many
phases of governmental finance which might have been selected for study, this
one was chosen for the reason that it seemed to be of greatest importance at the
moment. The expenditures of government had increased greatly in conse-
quence of the war, yet, to all appearances, they were being managed wastefully
and even dishonestly in the Federal, state, and local fields. The spirit of gain
which was rampant in business was corrupting the public affairs. The mess
now in Washington, wrote Professor Clyde L. King in the Foreword to the
aforementioned volume, points to the consequences of a breakdown in compe-
tency and economy as well as in morals in the public business. It was im-
portant to point ways for the protection of the public treasuries against further
inroads. The subject of the volume had, therefore, a particular timeliness.
But today the situation is quite different and requires a different sort of an
inquiry. With the breakdown of private enterprise a deep gap appeared in our
national economy, which had to be filled by the expansion of government ac-
tivity. The Federal Government had to provide relief to the unemployed,
various aids to the impoverished farmers, and loans to banks and other enter-
prises in distress. It had to organize public works to stimulate recovery, launch
a big program of conservation and development of the country's natural re-
sources, and, more recently, establish a comprehensive system of social security.
Since the finances of state and local governments had become unsettled by the
depression, it became necessary for the Federal authority to furnish subsidies
and loans to these governments for the discharge of some of their functions. To
finance this vast activity the Federal Government had to increase greatly its
expenditures (in the face of a shrunken revenue) and to go deeply into debt.
But it will have to balance its budget eventually and begin to pay off its loans.
The financial relations between the Federal and the state and local governments
will need to be readjusted in accordance with the altered political and economic
situation. The whole system of governmental finance in this country will need
to be reconstructed if it is to be used in the future systematically for the stabili-
zation of the national economy.
The political and economic situation in other countries of the world is equally
disturbed, and the financial problems complicated. Everywhere, the govern-
mental responsibilities in the social and economic spheres have been expanded
while the private responsibilities in these spheres have shrunk. Internal diffi-
culties have been reflected in external relations. A spirit of war has seized upon
certain populations. Many nations are rearming. One European nation is
already engaged in war, and the specter of another universal conflagration has
appeared in the offing. The finances of governments everywhere have been
put to great stresses and are likely to be subjected to even greater strains in the
near future.
Will the finances of the governments be able to sustain these stresses and
Xv

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most