Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-12-05
Continued From First Page.)

$3,621 ,314,285. The year closed with
actual receipts of $4,042 ,348, 1863. and
expenditures SO, SAB, 519,S7513 We were
thus given an actual surplus of $685.
S28,231. 06 that year. which is $55 ,000.
600 less than the estimate. Taking into
consideration that subsequent to the
transmission of the 1929 budget we
spent $50,000.000 for carrying out the
provisions of the settlement of war
claims act of 1923, approved March 10,
1928, the real difference between the
estimated and actual surplus for 1928 is
but 100000.
'"This current year, 1929, the outlook
Is not so bright. In the budget for
1929, transmitted to the Congress in
December 1927 our receipts were eSti-
mated at $780, 1884 and expendi-
lures $3,556.957,031 This indicated a
surplus of 1882 ,54O,283. This forecast
has been materially changed. With
actual operations for four months Of
the current fiscal year of record and a
clearer conception of what we face,
the estimate is now that our surplus
this year will be $50, 990,192 While this
margin of receipts over expenditures is
small, it is most gratifying, as on July
last the best estimate that could be
made indicated deficit of about $94,-
10000. The surplus now estimated is
based on receipts amounting to So
831 1850 and expenditures of $3,794,-
5,469. The difference between the
estimate of year ago and this estimate
is primarily reflected in the expenditure
figures, which have increased $685.
100000. The postal deficit accounts
for $68,000,000 of this estimated in
crease in expenditures. Included in
that amount is approximately $9,000,-
600 for overtime pay of postal per-
sonnet, 100000 for carrying ocean
and air mail, $14,000,000 for increase
in rail transportation rates, and $780,
100000 reduction in postal revenues
Expenditures for flood control account
for $16,000,000. Public buildings under
the Treasury Department and roads
under the Department of Agriculture
account for $26,000,000. Increase in
the amount of pensions account for
S11,000000 and increases in pay of
Federal personnel for $21 ,00O,0 900. Tax
refunds show an estimated increase of
$18,000.000 and interest $5,0OO000,
while the Navy and Shipping Board
expenditures account for $26000,000.
These are the major items which enter
into the increase.
Surplus Margin Small.
"For the coming fiscal year, 1880, the
estimate is that the receipts will
amount to 1891 ,295, 1929 and the ex-
penditureS $3,780 ZIG, SAT, indicating a
surplus of S60.576,182 The surplus
margin for both this year, 1929, and
next year, 1880. is small. 1t is, how
ever. satisfactory, as it points to a bal
anced budget. It is clear that we can
not assume any great additional ex-
penditureS without jeopardiZing this
this favorable outlook. We are COM
United irrevocably to balanced budget |
and that carries the assurance that the |
only revision of our tax laws which will |
be considered is revision downward. |
We have no immediate prospect of any |
further reduction in tax rates; but we
have no thought of cIlrtailing in any |
way the benefits which have gone to |
the people by the four reductions al |
ready made in taxes" -
In explaining the French debt uues- |
ton and its relations to the Federal |
budget, the President said:
ION August l. 1929, bonds of the |
Federal Government aggregating $780, |
100000 will mature. At the conclusion
of hostilities the American Expedition
airy Forces in France had accumulated
in that country vast stores of supplies. |
materials and equipment. Under the |
authority granted by the act of July 9, !
1918, it was decided to dispose of these |
supplies in France. The President, !
therefore, created under the War De- |
partment the United States Liquidation
Commission, whose main duty was to
settle claims and dispose of this surplus
property stored in France. The COM
mission appraised the value of the ma
terials for the purpose of the bulk sale
to France at 1852, 230, 800. After off,
setting certain claims and counterclaims
and taking into consideration the con-
tention of the French Government that
some of the supplies carried into France
were subject to customs duties estimated
at $150,000, 600, it was agreed to trans
fer these supplies to the French Gov
eminent, the latter to give in payment its
10-year 5 per cent bonds, dated August
], 1919, in the amount of $500, 100000,
interest thereon to be payable semi
annually from and after August /, 1920.
Under the terms of this contract the
French Government delivered to the
United States 400 of its 10-year gold
bonds in the face amount of 81 100000
each. These are the bonds that are due
and payable August l, 1929. Semi
annual interest on these obligations has
been paid punctually.
"In addition to the foregoing France
purchased other supplies from the War
Department stocks in the United States,
for which it gave obligations aggregat-
ing $7,341 14501, of which $6,566, AZ
mature on May 9, 1880, and STA ,382.59
on July 5, 1880.
Included in Settlement.
Gall of the aforementioned obliga-
tons were merged with the total obli
cations of France and included in the
debt settlement agreement between the
United States and France dated April
20, 1926, which funded the French in
debtedneSs to the United States ana
under which the payments from France
are spread over 62-year period, with
a material reduction in the interest rate.
IF, therefore, the debt agreement is
ratified by the French Government and
by the Congress of the United States
prior to August l, 1929, these obligations
will not mature but will have becomi
merged in the general indebtedness
funded under the debt settlement.
THE $406. sec, 40 due in the fiscal
year 1880 has not been included in the
estimates Of receipts for the reason thai
it is still expected the agreement of
April &c, 1926, may be ratified prior to
the maturity of these bonds. If, in ac-
cordance with the terms of this agree
ment it is ratified in France, it Is
recommended that it receive the prompt
ratification of the Congress of the
United States.
II Jne agreement is not ratlNeu, 1t IS
believed that the 406, SOC, 1852 AZ should
be applied to the retirement of our war
debt rather than treated as current re-
ceipts available for current expendi-
lures"
The economy and efficiency resulting
from the program of housing Federal
activities in the National Capital in
adequate and convenient permanent
homes is emphasized by the President
in that part of his budget message
which discusses the Federal building
activities as follows:
Big Program Under Way.