Evening star., 1930-06-22
CHANCE OF DEFICIT
THREATENS EARLY
END OF SESSION
Hoover Conferences and
House Caucus Show Uncer-
tain Treasury Condition.
VETERANS BILL STATUS
C0MPLICATES SITUATION
Imminent Passage by Senate Prom
ises Budget Shortage Unless
Remedied Before Adjournment.

ny the Associated Press.
Uneasiness over the thinness of the
line separating the Treasury from a
deficit for the next fiscal year appeared
last night to be the cause of a rouno
Of conferences at the White House and
q call for q Republican caucus in the
House.
Raised by the impending action of
the Senate on the World War veterans
bill, the worry threatened plans for
adjournment and sent q secret call to
House Republicans to assemble Tues
day night to discuss the veterans legis-
htion and the possibility of continuing
the present per cent tax reduction on
normal incomes through next year.
Already fears had been expressed by
proponents of the veterans measure
that the President would veto it, and
the suggestion has been made that Con-
Eress be held in session long enough to
act upon his message Of disapprova1 If
one is forthcoming.
From the White House there has
cane no official statement of the Pres
ident'S views. He abandoned his Gus
tomary week end fishing trip to the
Virginia mountains, however, and has
been engaged for the past two days in
conferences with congressional leaders
and ofncials Of the Treasury and Vet
erans' Bureau.
Confers With Mellon.
He conferred twice yesterday with
Secretary Mellon and UnderSecretary
Mills Of the Treasury. In the second
conference, Director Hines Of the Vet
erans' Bureau Joined and the group OF
oficials submitted figures regarding the
cost of the measure.
President Hoover has been concerned
for several months about the condition
OF Government finances for nREt year
and has cautioned Congress that 1t
must watch expenditures closely and
eliminate all unnecessary items If the
Treasury was to complete the next IL
months with surplus.
Before the 1 per cent tax reduction
was decided upon and. granted by Con-
greSs the Treasury had estimated that
it would have q surplus OF 1922, ,78S 1855
on June 30, 1891. The tax reduction
cut OF $50, 600 900 of that amount, the
Spanish American War veterans bill
Topped OF another $11, ,00O, 900, thus re-
ducing the prospective surplus to $751;
O0O, 900. With the passage of the vet
erans' bill this would be wiped out and
. deficit left IL the bill cost 4,00o, 900
or more annually, as estimated.
It also is regarded as likely that the
Treasury Is expecting less income next
year than this when income tax COL
lections are reaching previously un-
e0ualed totals. Present indications are
tAat the Government win have total in
come of more than $4,000, ,ooo, 900 this
year due to income tax payments Of ap-
proximately 81, ,450. .000, Geo. The busi-
ness depression. however, is expected to
reduce such taxes next year.
Speaker Longworth said yesterday the
President had his mind fairly well made
up regarding the kind of veterans bill
he could sign in view Of the condition
of the Treasury.
Not to Use Pocket Veto.
He added that he was confident that
If congressional action was completed
and the measure did not meet the
Chief Executives wishes, he would i'm
mediately signify his disapproval and
give his reasons without permitting the
legislation to die through pocket veto.
Two meetings of the unofncial Re-
publican steering committee Of the
House were held yesterday, and late in
the day Representative Hawley Of Ore
kOAAs CAAdAAAaA Va oA1C 1SCRhS@NoAA SON
Gus, sent out the call for conference.
The word was spread quietly and lead
ers were adverse to discuss the reasons
for the call.
Such a meeting of the Republican
group, at the end of q session, Is in
Itself unusual.
The Speaker said that IN view OF the
uncertainty of the veterans measure
and the status of the rivers and har-
bors and deficiency bills, 1t seemed un-
likely that Congress could adjourn by
the end of next week.
Earlier in the day Senate leaders had
expressed belief that the remaining
legislative proposals could be cleared
away In time to quit before next Satur-
day.