Evening star., 1930-12-02


found It's major expression IN the
shortage of pastursge and a shrink
age in the c5rn crop from an aver
age of about $500 O0O, 600 bushels to
about 1000, ,000, 900 bushels.
On August IA called a confer
ence of the governors OF the most
acutelv affected States, and as re-
suit of its conclusions l appointed
A national committee comprising the
heads of the important Feoerai
agencies under the chairmar1ship OF
the Secretary of Agriculture. Inc
governors in turn have appolnteo
State committees representative OF
the farmers, bankers, business men,
and the Red Cross, and subsidiary
committees have been established IN
most of the acutely affected counties.
Railway rates were reduced on 1eeu
and livestock in and out Of the
drought areas, and over $4,000 cars
Of such products have been trans
ported under these reduced rates.
The Red Cross established a prelim-
mary fund Of $5,000,00 for distress
relief purposes and establ shed agen-
cies for its administration in each
county. OF this fund less than $780,
900 has been called for up to this
time as the need will appear more
largely during the winter. The Fed
eral Farm Loan Board has extended
It's credit facilities, and the Federal
Farm Board has given financial
assistance to all affected co-opera-
tives.
In order that the Government may
meet its full obligation toward our
countrymen in distress through nc
fault of their own, recommend
that an appropriation should be
made to the Department OF Agricul-
ture to be loaned for the purpose
of seed and feed for animals. It's
application should as hitherto In
such loans be limited to a gross
amount to any one individual, and
secured upon the crop.
The Red Cross can relieve the
cases of individual distress by the
sympathetic assistance Of our people.
Budget Estimates Too Low
in View Of Depression.
shall submit the detailed hnan-
cial position of the Government with
recommendation in the usual Buuget
message. 1 will at this time, how
ever, mention that the Budget esti-
mates of receipts and expenditures
for the current year were formulated
by the Treasury and the Budget Bu-
reau at time when 1t was impos-
sib,e to forecast the severity OF the
business depression and have been
most seriously affected by it. At
that time a surplus of about $l23,-
100000 was estimated for this flscal
year and tax reduction which
affected the fiscal year to the extent
of $75,000,000 was authorized by the
Congress. thus reducing the esti-
mated surplus to about S48, 900, ,00O
Closely revised estimates now made
by the Treasury and the Bureau of
the Budget of the tax, postal. and
other receipts for the current fiscal
year indicate a decrease of about
$430, 100000 frcm the estimate of a
year ago. of which about SIS. 900 900
Is due to tax reduction, leaving about
$So5,OOO,O0O due to the depression.
Moreover. legislation enacted BY Con-
greSs subsequent to the submission of
tne Budget enlarging Federal con-
sVructlon work to expand slnDloy-
ment and for increase in veterans,
services and other items. have in
creased expenditures during tho crIr-
rent fiscal year by about $225, ,OCO 600
Thus the decrease Of S43O, 600 600
In revenue and the increase of
$225 1000. 900 in expenditure adversely
change the original Budget situation
by about 1856. 900 900. This large
sum Is offset by the original esti-
matea surplus year ago of about
$l23,000,OOO, by the application of
$lS5, 100000 of interest payments
upon the foreign debt TO current
expenditures, by arrangements of the
Farm Board through repayments,
ETC., In consequence Of which they
reduced theif net cash demands upon
the Treasury by $100 900 900 in this
period, and by about 67,OOO,OOO
economies and deferments brought
about In the Government, thus re-
ducing the practical effect of the
change in the situation to an esti-
mated deficit of about $3.50, ,0OO, 900
for. the present fiscA year. I shall
make suggestions for handling the
present-year deficit in the Budget
message, but I do not favor en-
croachment upon the statutory re-
duct1on OF the public debt.
Rigid Economy Necessary
to Avoid Tax Boost.
While it will be necessary in pub
lie interest to further increase ex-
penditures during the current fiscal
year in aid to unemployment by
speeding up construction work and
aid to the farmers affected by the
strongly the absolute necessity to
defer any other plans for increase
OF Government expenditures. The
Budget for 1882 fiscal year indicates
estimated expenditure of about $4,-
O54, 900, 900, including postal deficit.
The receipts are estimated at about
4,005 100000 II the temporary tax
reduction Of last year be discon-
tinued, leaving O. surplus of only
about $4,000, 900 Most rigid econ
omy is therefore necessary to avoid
increase in taxes.
Our Army and Navy are being
maintained at Q high rate OF EN-
cheney under officers of high training
and intelligence, supported by q de-
voted personnel of the rank and file.
The London naval treaty has brought
important economies in the conduct
of the Navy. The Navy Department
will lay before the committees of the
Congress recommendations for a
program Of authorization of new
construction which should be initi-
ated in the fiscal year of 1892.
This is the last session of the
Seventy-flrst Congress. During It's
previous sittings it has completed q
very large amount of important
legislation, notably: The establish
ment Of the Federal Farm Board;
fixing congressional reapportion-
ment; revision of the tariff, includ-
ing the flexible provisions and a re-
organization Of the Tariff Commis-
sion: reorganization of the Radio
Commission: reorganization of the
Federal Power Commission; expan-
sion of Federal prisons: reorganiza-
ton of parole and probation system
in Federal prisons: expansion Of
veterans hospitals: establishment Of
disability allowances to veterans;
consolidation of veteran activities;
consolidation and strengthening OF
prohibition enforcement activities In
the Department of Justice: organiza-
ton Of q Narcotics Bureau; large
expansion of rivers and harbors Inn