The Waterbury Democrat., 1931-12-09
Budget Message Of
 President Hoover
lContinued From Page D

rom Page D
 farm board revolving loan fund, $80, 900, 900; interest on the public debt. $25,000.000; postal reficit, $81 100000 and settlement under the war claim act, $37,000, 900. There are many other individual items of increase over the expen- ditures estimated year ago which. would materially swell the total of increases. Rigid reduction of ex- penses elsewhere supplemented by decreases in public debt expendi- lures on account of the mora torium and smaller tax refunds than were originally estimated serve to offset the total increases.
 These changes in receipts and expenditures indicate a deficit of $2,123, 3,000,000 which includes stat utory debt retirement of prob- able net debt increase of $1,711,- 900, ,000. :"
 We are now face to face with situation where for a time the current revenues of the government under our existing laws have fall en below the amounts required to meet the absolutely necessary ex- penses. This brings the question di- rectly before us of the course that shall be pursued. As already stat ed the deficit for the fiscal year 1891 is $902,000,000 and the esti- mated deficits for 1892, $2,123,- 000,0O0, and 1888. $1,417, 1000, ,00O or a total of 4,442,00O, 1000, which, after deducting statutory debt re- demptions and increased cash in the treasury show for these three fiscal years total probable net in- crease in the national debt of $3,- 247,OO0,000. Rightly or wrongly our tax system is very largely based upon business profits and in consequence is subject to great variables
 We cannot maintain public confidence nor stability of the fed eral government without undertak- ing some temporary tax increases. It is obviously impossible to impose a degree of taxation which will balance the budget for the cur rent fiscal year. We should en- deavor by increase of taxes and rigid curtailment of expenditures to balance the budget for next fis- cal year except to the extent of the amount required for statutory debt requirements. We should assure its balance, including statutory debt ret!rements, for the fiscal year fol- lowing.
 II recommend that congress pro- vide for an increase in taxation for definite limited period and upon the general plan of taxation which existed under the revenue act of 1924 with such changes as may be appropriate in the presence of al- tered conditions. The secretary of the treasury has prepared recom- mendations along these lines which he will present at the proper time. It is proposed that this increase shall be definitely terminated in two years from next July. This plan, 1t is estimated, will realize $92O,OOO,O0O next year and thus meet the above conditions of bal ancing the budget for the fiscal year 1883 except for the statutory debt requirement It would bal ance the budget including debt retirement in the fiscal year be- ginning July l, 1888. It would pro- vide about $390.000, 900 for the cur ent year. leaving us with the nec- essity of borrowing an amount which will represent a net increase In the public debt by about $1,- 32O, 100000.
 The plan of approximately re- enacting the revenue act of 1924 has the great advantage that the government is equipped by experi- ence with similar legislation for its systematic and economical collec- tions. The public has paid such taxes in the past and has found them not intolerable and has found that they do not prevent increased prosperity. By providing a definite date for termination of the tenn porary increase it will allow tax payers to look forward to definite relief.
 ''I further recommend that con- grcsS inquire into the economic ef- feet of the provisions of the pres ent law relating to capital gains and losses.
 There is requested In this bud get total of slightly more than SLOPE, 900. .000 for the veterans ad- ministration. compared with a total appropriation for 1892 or approxi- mately $947, 100000. About $21,- 100000 of each of these amounts pertains to the civil service retire. ment and disability fund and is not properly chargeable to the cost Of caring for our veterans, which thus becomes $92G, 000,000 for 1892 and S1,051, 900, ,000 for 1893. Com parlson of these amounts indicates on It's face a net increase of $125.- OOO,0 for 1883. However, 1t is now known that additional appro- priations will be required for the fiscal year 1892 to the approximate amount of $260. co. 900, of which s2O0, 100000 Is to meet obligations due to the increase in the loan value of adjusted service certifi- cates and 60,000,00O to meet the requirements for military and naval compensation. army and navy pen- slons, and aid to state and terri. torIal homes for disabled veterans.
 Taking these supplemental re- qulrements for 1882 into considera. ton, the above indicate, net ln- crease of 5,000,00O becomes a net decrease of approximately si35, 900 900. This net decrease. however. is due largely ts tho ad- Justed service certificate fund rec quirementS. which are 9iG2, 900. 900 less for 1888. If the adjusted -serv.