Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-28
TREASURY DEFICIT
IS S1,ODl,792,43D
Income Tax and War Debt
Payments Expected to Re-
duce Excess Somewhat.

By the Associated Press.
With the deficit now over q billion
dollars, as shown by the Treasury's daily
statement for May 2e, high administrs-
ton ofIlcials indicated today that the
Treasury was considering announcing in
the near future large long -term bond
issue.
At the same time they voiced hope
that the late Summer would see an i'm
proVement In agricultural conditions
which might mark the first steady re-
turn to normal. THY pointed out that
previous depressions, the upward
climb had started In late Summer when
farm crops we're marketed but that the
improvement was slow and did not be-
come generally evident until early Win
ter.
The opinion vas expressed that the
present depression had reached the bot
tom. and that any change would be
upward.
Deficit Il Sl,00e, 5s2,43e.
No officisl would comment upon the
Governments financial plans for rails
ing money to meet the huge deficit,
but 1t was indicated serious considera-
ton was being given to announcing q
bond issue next month, rather than to
continue raising funds through issues
Of short-term paper.
The Tressury's statement showed
that on May IS the Government had
deficit Of $1,000, 7s2. 430 and indica-
tons were that it would not be less
than that at the end Of the fiscal year.
While the Treasury expects to collect
$500, 000.000 or more in income taxes
and war debt interest on June u.s. 1t at
the same time expects the total ex-
penditures for the fiscal year will
amount to $4,430, 0O0. 900. which would
mean a deficit Of more than 81 900, 0oO,-
O00
The Treasury already has issued since
March Is more than 81, 800 900 900 in
securities, about half of which repre-
sented refunding operations and the re-
mainder the raising OF new money. 1t
announced this week an issued Of Treas
ury bills amounting to $50,00O,O0O, but
has found it necessary TO increase that
amount by $3O,00o,000 because Of I'M
expected expenditures.
Todays statement OF the Treasury
condition showed the billion-dollar
mark was passed when expenditures for
the fiscal year since Iast July mounted
to $3,793, 1874 ,329.56 ana revenue from
all sources aggregated only $2,7s2,S7l,-
1885.
The receipts for the fiscal year to
May IS compared with SO ,352, 1854, 1888 for
the same period of the preceding fiscal
year. This reflects q drop Of $3.50, 000,-
600 in customs duties and $500, 000, 900
in insome tax collections, together with
lesser decreases in various other forms
OF income.
Expenditures Far Ahead.
The expenditures for the fiscal year
were more than 5000, 900 900 in excess
those in the same period Of the pre-
ceding fiscal year, when they amounted
to S3,557, 106.45l. The biggest increase
was shown in the orc mary expenditures
OF the Government. which amounted to
1892 .27l 1923. as compared with $3,045,-
275.547 in the same period of the pre-
ceding year. ..... ....
This included an increase Of &70.-
900 900 in exp. nditures by the Farm
Board. Since last July the board has
spent $l7s.339 ,997. as compared with
sos. $50, $40 for the preceding year
The adjusted service certificate fund,
from which loans are being made to
war veterans. accounted for 1925. 205, 5Q4
this dSeal war "a connnarAd With n
290.l58. This increase was due to Con-
gress having advanced the $4,000 900
which ordinarily would have come out
of receipts received next year.
The postal deficiency also has called
for greater expenditures with $1l9,017,-
3l5, as compared with t75,074,o70.
nraT nUrxrvr ~nxavv-.