FROM THE BIRTH of the United States of America in 1789 until June 30, 1916, total expenditures of the Federal Government amounted to only $26.75 billion, revenues to $25.9 billion, and deficits to only $0.85 billion in one hundred and twenty-seven years. From 1916 to 1940, only twenty-four years, total Federal expenditures were $142.08 billion, revenues $99.95 billion, and deficits $42.13 billion (exclusive of guaranteed debt). These figures include the recognized debts of the Revolutionary War and the costs of the War of 1812-15, the Mexican War, the Civil War, the Spanish-American War, World War I, and the New Deal War of 1933-40. Between 1941 and 1945, five years of World War II, total Federal expenditures amounted to $320.94 billion, revenues to $130.27 billion, and deficits to $190.67 billion. In these five years Federal expenditures exceeded those of the entire one-hundred-and-fifty-one-year period, 17891940, by $152 billion. Between 1946 and 1950, inclusive, total Federal expenditures in five peacetime years (pre-Korea) have exceeded $225 billion-$56 billion more than those of the previous one hundred and fifty-one years, which include the costs of six wars and a great depression! Between 1900 and 1914, annual Federal expenditures absorbed only 2.2% of current national income. In the decade of the 1920's the annual average rose and in the 1930's reached 4.1%. In 1940 Federal spending absorbed 11.7%. Between 1946 and 1950 (pre-Korea), the annual average absorbed almost 21% of the average national income of that period. For the coming decade President Truman has projected Federal spending under the rearmament program to an annual minimum of $75 billion and a maximum (we hope! ) of $90 billion without all-out war. This minimum budget will absorb 34% and the maximum budget 40.9% of the $222 billion estimated as our 1950 all-time-high nitional income, which before World War II had never exceeded $80 billion (in 1929). If state and local government spending of $15 to $20 billion annually are added, the combined minimum will absorb 40.9% and the combined maximumz 49.5% of the (1950) national income.