Evening star., 1922-09-21
DEFICIT OUTLOOK
CAUSES ANXIETY
Presidents Data in Bonus
Veto Speech Pessimistic
for G. O. P.
CAMPAIGN HARD HIT
Question of Meeting se5o,o0o,O ,Ood
Responsibility Up to
Congress.
HARD HIT
BY DAVID LAWRENCE.

entirely apart from the fact that
president Harding vetoed the bonui
Dill, profound impression has beer
made by the official disclosure that
deficit Of $650,000.00O faces the coun.
Try 1or the fiscal year which began
last July and ends June 80 next.
Government experts went over the
estimated expenditures carefully and
submitted detailed figures to the
president before he wrote his mes
sage, but were unable to promise any
peter showing of government
| finances. This means, in a nutshell
that congress cannot afford to au-
| thof1Ze the expenditure of any more
| money, and even the pension bills
ana river and harbor proposals, which
are pending, are likely to be vetoed
II they are put up To Mr. Harding,
LII other words. the brakes must la
put on to keep the deficit from grow.
| ing and the departments will be re-
qulred TO economiZe still further in
self. '"o 'e''eiI H.
Impairment 10 Campnirp.
J Most uncomfortable. too. is thu
Necessity or acknowledges % deficit
iof s6ao,000,000 at a time when th.
campaign orators would have found
4
Work done in balancing the budget
ior the fiscal year which ended in
IJune 1922. As matter Of fact the
government did finance itself we'll and
balance the budget when it had
tappeared that there would be deficit
Of from twenty-five to a hundred
million dollars. No such promises
OF reduction of the deficit can be made
this time unless revenues are derived
from unexpected sources. The most
l u hA e.
OF the deficit from about $3.50, 900. .0oo
to about half that sum. and even this
| is by no means certain.
The deficit arises largely from the
| fact that Congress reduced the re-
ceipts from taxation through the new
revenue law and there was an un-
looked-for Shrinkage in tax receipts
due to the business depression. Com
gress can hardly increase taxes now.
| so the alternative is reduction of eX-
pendlture. But even this is easier
said than done, for on the Veterans
Bureau alone $3.50. 900 goo will be
spent this year or more than half Of
! what used to he expended in pre-
war days for Uncle Sans entire bud
get There is no telling how much
greater than s530.o0o. 600 the expenses
for disabled veterans and Vocational
training will run, but the govern
mentS policy is to, spare no money in
that direction.
May Sell Nail Securities.
In. order to cut the $3.50, 900, 600 def
cit down somewhat it is likely that
the government will sell some of the
railroad securities which itttook from
the railroads during government oper-
alton when various sums were lent
| them for equipment. Probably $780,
| 100000 may be realized this way. Ap-
| proximately s125,00O.000 in interest
! payments from Great Britain have
| already been put in the estimated re-
! ceipts for this fiscal year. so. if there
is default, the deficit would be IN
creased
If France or some other allied coun-
tries could pay interest some prog
ress would be made in cutting the def
cit, but the most optimistic predic-
ton today is that with all sorts of
economies and restriction of expendi-
ture the $3.50, 900 will be cut only
| to half. All this is on the supposi-
ton that Congress will not spend apy
more money and that, of course II
Will sustain the Presidents veto of
the bonus bill. Should the Senate fol-
low the policy of the House and over
ride the veto, IL contingency not look
ed for at all by the President or TIE
Treasury Department, all predictions
would go by the boards. Treasury
officials say the overriding of Inc
veto is absolutely .'inconc ceivable ard
would be calamity"
Copyright. 1892