Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-09-21
ENORMOUS DEFICIT
IN TREASURY SHOWN
BY HARDING S VETO
Shortage of S650,0O0, 900
for Fiscal Year, Admitted
by White House, Is Poor
Campaign Material
BY DAVID LAWRENCE
Leased Wire Service to The Journal.)
ICOpyright, 1929

copyright, 1929
WASHINGTON, Sept. 20.-Entire-
ly apart from the fact that President
Harding vetoed the bonus bill, a pro-
found impression has been made by
the official disclosure that a deficit
of $3.50 200, 900 faces the country for
the fiscal year which began last July
and ends June 30th next.
Government experts went over
the estimated expenditures careful
ly and figures submitted detailed to
the president before he wrote his
message, but were unable to promise
any better showing of government
finances. This means in a nutshell
that congress cannot afford to au-
thorize the expenditure of any more
money, and even the pension bills
and river and harbor proposals
which are pending are likely to be
vetoed if they are put up to Mr..
Harding. In other words. the brakes
must be put on to keep the deficit
from growing and the departments
will be required to economic still
further in an effort to cut down
the deficit, itself. ",@.
Uncomfortable Admission
Most uncomfortable, too, is the
necessity of acknowledging de-
ficit of $3.50, 100000 at a time when
the campaign orators would have
found it so effective to refer to the
splendid work done in balancing the
budget for the fiscal year, which
ended in June, 1922. AS matter OF
fact, the government did finance it.
self we'll and balance the budget
when it had appeared that there
would be a deficit of from twenty5,
five to a hundred million dollars. NO
such promises of reduction of the
deficit can be made this time unless
revenues are derived from unexpect-
ed sources. The most that can be
hoped for is reduction of the deficit
from about $3.50, 100000 to about half
that sum, and even this is by no
means certain. .e.
The deficit arises largely from the.
fact that congress reduced the re-
ceipts from taxation through the
new revenue law and there was an
unlooked-for shrinkage in tax re-
ceipts due to the business depres-
sion. Congress can hardly increase
taxes now so the alternative is re-
duction of expenditure. But even
this is easier said than done, 1or on
the vetrans' bureau alone 100000
900 will be spent this year, or more
tina. half of what used to be expend-
ed in pre-war days for u. lie Sans
entire budget. There is no telling
how much greater than $53O,OO0,O0O
+he expenses for disabled veterans
and vocational training will run, but
the governments policy is to spare
no money in that direction.
In order to cut the $3.50, ,OOUe
deficit down somewhat it is likely
that the government will sell some
of the railroad securities which It
took from the railroads during gov
eminent operation when various
sums were lent them for equipment.
Probably 100000 900 may be real
lied this way. Approximately $l25,-
10000 in interest payments from
GreG. Britain have already been put
in the estimated receipts for the fis-
cal year, so if there is default, the
deficit would be increased.
Foreign Debt
If France or some other allied
countries could pay interest Some
progress would be made in cutting
the deficit, but the most optimistic
prediction today is that with all
sorts of economies and restriction
of expenditure the $3.50 ,OO0s000 will
only be cut in half. All this is on
the supposition that con ress will
not spend any more money and that
of course 1t will not overturn the
presidents veto of the bonus bill.
Should the senate low the policy
of the house and override the veto.
a contingency not looked for at all
by the president or the treasury de-
partment, all predictions would go
by the president or the treasury de-
say the overriding of the veto is
absolutely Uncomfortable and would
bn W -