Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-03
S5(D,0DO,0lD BOOST
IN U. S. DEBT SEEN
Increase to $3.50, 600, 900 in
Treasury Deficit Also Seen
on July |.
BY the Associated Press.

by I0e ASSOCldlcu FIbes
The administration expects the ma
tional debt to be increased by $500, 000,-
600 and the Treasury deficit to total
$3.50 900 900 at the close of the fiscal
year June 80.
The condition Of the Governments
finances was attributed in White
House statement yesterday to the busi-
ness depression A decline in Treasury
receipts from taxes and customs was
causer, it was said, by the economic sit
uation On the other hand, 1t added
unusual expenditures for construction
work, agricultural relief and veterans
services amounting to more than half
billion in excess Of those Of the last
fiscal year placed an unusual drain
on the Treasury.
The announcement was made after
President Hoover conferred with the
cabinet. During the conference Secre-
tarv HYDE informed the Chief Executive
the Agriculture Department would save
s11 000, 900 this fiscal year ana S2O,,
100000 next year, largely from unused
relief funds.
Will Discuss Naval Plans.
At the same time Mr.. Hoover in
vited Secretary Adams and High naval
officials to his camp at Rapidan, Va, to
discuss. over the week end ways OF cut
ting costs Of the naval establishment.
However. naval officials have pointed
out that already appropriations for the
coming fiscal year are less than those
of this year, while the five-year aviation
expansion program remains uncomplet-
ed and the Navy has not built up to
the London Arms Conference limitation.
In his campaign to curtail Govern
ment expenses President Hoover already
has laid plans to reduce operating out
lays for the War, Postal and Interior
Departments. At the White House. 1t
was said, his study last Summer resulted
in reductions in Expenditures totaling
$3.50, 100000.
The White House statement said:
In reply to inquiries from the press
the following information in round
numbers has been furnished by the dl-
rector of the budget as to the economies
made during the past year and the prob
able fiscal situation upon July /.
$500, 100000 Increase.
Present indications are that the
financial transactions of the Govern
mert for the fiscal year ending June
30. 1881. will show an increase of about
$500, 000, 900 in the national debt. The
deficit is from about $900000,000 to
$3.50. 900, 900 of which about $440, 100000
will be due to the statutory redemption
of the debt.
The deficit is principally due to
falling off in receipts of the Treasury,
from taxes and other sources, caused
by the depression which will apparently
be about $40, 000,0 900 below the fiscal
year ended June 30,1930. Added to this
is the additional burden of about $780,
100000 fall in postal receipts.
There have also been large increases
in expenditures for construction work
and agricultural relief and for veterans
services amounting to about $54O 10000
above that of the last fiscal year.
These figures alone-a reduction Of
$50 ,0OO, 900 in receipts and an increase
of nearly $40, 000,00 in expenditures
in the above items-would indicate that
the Government would be over 81 AGO.
100000 worse off this year than last.
$500, 100000 Deficit.
However, deferment and reductions
In expenditures in other parts Of the
Government, largely due to the economy
drive last Summer, amount to about
$3.50, 100000. During the fiscal year
ended last June, the debt was reduced
by 1905, 100000 in excess of statutory
amount. while this year it was held to
the legal requireme nts. These two sums
make a difference In the situation of
about $485, 100000 and result in final
deficit of about $900,000,000 or $780,
600 900, about $440,000,000 will be ex-
pended in the statutory redemption of
the public debt so that the net increase
in the debt for the fiscal year will prob
ably be about $500,000000.
THE administration of veterans af-
fairs reports that the loans so far made
upon bonus certificates now total ST.
C98, 947, 900 to 1871 1855 individuals of
which 1924, 48l 900 has been furnished
from insurance and other funds, about
$50 COO 900 from the banks, and $751;
100000 from sale of Treasury obliga-
tons.