Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-18
HOOVER MUST CUT
$3OO,OIO,O)) COSTS
Appropriations Exceeded by
That Amount-Limit on
New Estimates.
Continued From First Page.)

Continued From First Page)
ministration officials. in that the de-
partments had been urged in advance
by the President personally to hold their
requests within the totals for this year,
so far as this was possible.
AS it was the total requests as pre-
sented by the departments and inde-
pendent agencies which receive con-
gresSional appropriations amounted to
about $4,400,0 900, officials say. ex-
elusive Of the expenses OF the postal
revenues. Mr.. Hoover's self-assigned
problem is to reduce the estimates to
around 4,10O,00o,000 or lower. The
undertaking Is complicated by the fact
that more than half that figure is in
fixed Federal obligations. 1t means, as
the President pointed out yesterday In q
public statement, that the effort to
make reductions must be concentrated
on less than one-half the budget.
The possibility of q tax increase does
not necessarily hinge on the success Of
the Presidents effort to keep budget
estimates within certain limit Bar
ring a sensational business upturn
which would be reflected Immediately
In greatly increased Federal revenue, it
is considered virtually impossible to
balance the 1932-1933 budget without
increasing taxes.
Views Differ Sharply.
While the administration has yet to
decide whether to make up the diff
ference by a tax increase or bond
issue, and there is a sharp division Of
opinion among fiscal officers on the
policy, the Treasury Is making studies
to be prepared to recommend increased
taxes, If this course finally should be
determined upon The President has
made it clear that that bridge does not
have to be crossed much before Con-
gress convenes in December. Meantime
he is watching the business outlook
for possible indications Of a changed
revenue situation in the year for which
the fiscal plans now are being laid.
The Presidents suggestion that pub
lie opinion might need to be brought
to bear against the pressure for special
projects which continues despite the
Treasury deficit, was regarded in many
quarters as aimed, in part at least, at
Navy officials who feel that the re-
trenchment drive is cutting the Navy
too sharply.
That Secretary Adams shares this
view was stated yesterday by persons
who profess to have seen copies of his
letter to the President accompanying
the revised budget. The Secretary is
reported to have advised Mr.. Hoover in
that letter that, while the Navy was
complying with his wishes, it meant a
serious impairment Of naval strength
The Secretary also undertook to state
In the letter, 1t is said, TO what extent
the Navy has reduced its fleet, equip
ment, personnel and activities in the
10 months since the economy order first
was pressed sharply on Government De-
partments.
Publication Is Deplored.
The publication Of minute details of
Secretary Adams letter tc the Presi-
dent, listing the many activities that
were proposed to be curtailed in revis-
ing the Navy budget, was deplored in
administration circles. There were
some officials who took the view that
it confirmed the Presidents suspicion
that Navy officials we're trying to force
the Presidents hand by mobilizing re-
sistance to the economy move from all
the communities and political leaders
that would be affected by the cuts now
proposed.
In this connection 1t was pointed out
that Secretary Adams. in suggesting the
closing of the Boston and Charleston
Navy Yards and the Newport training
station, stated in his letter that these
stations could be dispensed with with
out impairing Navy efficiency. The
point was considered Of more than nor
NAL importance as likely to direct the
political pressure for the maintenance
Of these stations against the Navy
rather than against the President, I'M
less his final budget, as submitted to
Congress, should indorse the Nays
suggestion in this respect.