Evening star., 1930-12-03

being made in cash instead of in securi-
ties as had been anticipated.
1881.
For the current fiscal year, 1881,
there has been a. material change IN
our financial situation as now esti-
mated compared with the estimates
presented a year ago In the 1881
budget. At that time 1t was estimated
that the receipts would total $4,22S,-
727. .666 and the expenditures $4,102,--
93S TOO. which forecasted surplus OF
Sl22. .788. .966. Here again the surplus
estimated did not reflect the erect OF
the temporary tax reduction recon-
mended in that Budget which 1t was
anticipated would cause reduction OF
over SIS ,000, 900 in the receipts Tor the
fiscal year 1881. Therefore, with this
adjustment the surplus estimated at
this time last year would have been
about $45, 100000. :,
"Due to the depression 1t Is now esti-
mated that the income Of the Govern
ment in taxes and in postal receipts tor
the current fiscal year will probably
fan below the anticipation by over
$3.50. .OO0, 900. Moreover, the measures
taken to increase employment by the
expansion Of construction activities In
the Government under the authoriza-
ton of Congress, together with other
items of increase, including the increase
in veterans services enacted by Con-
Qress. represent very material increase
in Government expenditures OF over
1925, 900, 900.
"This would indicate q change In the
situation from the estimates of the last
Budget Of nearly 1856, 100000. This
large sum, however. is partially met by
the application Of $185, ,000, 900 Of inter-
est payments on the foreign debt tc
current expenditures and by arrange
ments of the Federal Farm Board by
which they reduced their net cash de-
mandS upon the Treasury by $10O, ,000,-
900 during this period. These sums, to-
gether with economies brought about in
the Government, reduce the practical
effect of the change in the financial
situation to a present estimated deficit
of approximately $180,000,000 for the
current fiscal year.
"This development, Of course, Is pri-
marily due to the depressed condtlon
not only in this country but in the
whole world, accentuateo by tne
drought, and, on the other nano, u
the necessary measures OF Cne CoveIu- I,I-
ment to increase employment, and the
increases of allowances to various serv-
ices to veterans.
"I do not look with favor on any
attempts to meet this deficit by reduc-
ton of the statutory redemption OF the
public debt, which now amounts 10
about $440 ,000, 900 per annum. NOR &c
I look with great concern upon this
moderate deficit for the current fiscal
year, which, in fact, amounts to less
than per cent Of the total Govern
ment expenditure. The adverse balance
ran he met hv reducing the genera.
fund balance from the amount in 1t al
the beginning of the year, supple
mented, If necessary, by temporary bor-
rowing by the Treasury. When VIC
recollect that our Budget has yielded
large surpluses for the last IL years,
which have enabled us to retire the
public debt, in addition to retirementS
required by law, to the extent Of nearly
$500, 100000. we can confidently look
forward to the restoration Of such sur
pluses with the general recovery of the
economic situation, and thus the
absorption of any temporary borrowing
that may be necessary.
"It will probably be necessary Tor
Congress to appropriate additional
money for expenditure within the pres
ent fiscal year In order to increase en-
ployment and to provide for the
drought situation. have presented
this matter in my annual message en-
the state of the Union. While this wiz
operate to increase the amount Of the
deficit as above estimated, believe
such increase can be accommodated b.
| the methods indicated. On the Other
hand, no appropriations should be made
for such purposes which look beyond
such action as will ameliorate the i'm
mediate situation during the next SIX
| months.