Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-18
Treasury Faces Necessity for
Raising More Cash as Ap-
pIiCationS Rise.
INCOME TAX RECEIPTS
FALL OFF SIS, 900, 900
First Days Revenues Lag-U. s.
Drops Refnancing Plans-Is
$437,515,71S Short.
BY the Associated Press.

BY the Associated Press.
Confronted with a Government in
come outpaced by expenditures, hnan-
cial minds today cast about for q
method Of shortening the distance be-
tween the two.
The picture was presented clearly.
On March Is, the Treasury had an
actual deficit of $437,515,713. In addi-
ton to this, there was demand yester-
day from the Veterans Bureau for
$500,00o,0o0 to meet loans of veterans
compensation certificates.
On the other side of the ledger were
tagging income tax receipts. The first
days collections dropped 100000
under the first day of a year ago,
despite one per cent increase on
normal income taxes. The report for
Monday, March IS, showed SIS, 100, 1852,
as compared with $18,148,963 for the
last filing day last year.
Tomorrow indicative.
This, however, was not considered by
officials as indicative of the trend
the total receipts win follow. Referring
to the records for the second and third
days after the closing date last year,
they pointed to tomorrow and Friday as
the days which would give better in
dication Of the trend
Chairman SmoOt Of the Senate
revenue legislation for that branch, ex-
pressed belief today the Treasury deficit
would be larger than present estimates.
He estimated 1t would be at least $780,
100000 at the end Of the fiscal year,
June 80
He said either a tax increase or a
slice in the amount put aside for the
sinking fund would be necessary. He
dld not regard a tax increase favorably
at this time.
Treasury Lacks New Plan.
For the present, however, the Treas
ury was buSily occupied with meeting
its immediate pressing demands. No
plan has yet be.n announced for raising
the additional 100000, 900 which Vet
Grams Administrator Hines has stated
win be necessary to care for veterans
loans.
On Monday it sold $500 ,ooo, 900 of six
months ! u per cent certificates of in
debtednesS. That amount was expected
to take care of the veterans loans for
three months. Hines said $500, 600, 900
would be needed to care for the first six
weeks loans.
estimate that rs per cent of the vet
Grams would apply for loans totaIinR
81, 000, 100000 would be borne out. IN
the first two weeks, he told the Secre-
tary, 1,372,006 Of the $500, 900 veterans
had filed applications.
Refnancing Called OF.
In the face of the changing situation,
the Treasury quickly began revising
TnanHiP0 T..
the fiscal year. To raise the first
$30o.0o0,000 for veterans loans, it had
scrapped plans for reflnancing maturing
Treasury notes and about So, 00O, 900 900
In Liberty Loan bonds which are call
able next year and the year after.
Likewise, Director Ijams of the Vet
Grams Bureau believes that within a
out at the rate of 200 900 weekly, a
sharp increase, as the new machinery
limbers up with use.
The veterans administrator also told
Secretary Mellon $1,000, 100000 would
be required to pay all loans. He esti-
mated rs per cent of the 3,500,O00 adj
Justed compensation certificate holders
would take advantage of the oppor-
tSuity to borrow half the face value Of
their certificates
Hines asserted $50 900 would be
required this week to meet loans and
$100,o00,000 weekly for the next three
weeks. Since Congress OVERRIDE the
Presidents veto and increased the
borrowing value of certificates, loans
have been granted 262,874 veterans for
sums totaling $l04,035, 1866.
Checks Speeded Up.
Ijans disclosed that checks were
issued much faster between March 7
and March Is than in the preceding
week, with total of about 100000
against 100000. He expressed the be-
lief 200,0 would go out weekly unless
the brakes are applied"
Bureau officials said 100000 vet
Grams had borrowed on their certificates
under the former law which allowed
them 22.5 per cent. They declined to
estimate how many of the 1872. DOG
applicants under the new law were
"repeaters'' although expressing the be-
lief most Of them had borrowed in the
past.
The increased loan value Of certifi-
Gates, I1ams said, has brought more
applications for certificates from vet
Grams who previously had not sought
to obtain compensation for their war
service. There also have been more
for disability allowances, he
said.