The Washington times., 1931-05-11
BILLION DEFICIT
BRINGS CUTS
FOR ARMY
Hoover Rapidan Session First
of Series to Slash Expenses;
Vacation Plans Up in the Air
BY GEORGE R. HOLMES

BY GEORGE r. HOLMES
President Hoover's concern over
the state of the Governments
finances-really serious matter
may operate to keep him close
to his desk in Washington
throughout the summer and force
the abandonment of previous
plans for a long vacation on the
Pacific Coast.
The Treasury deficit for the
current fiscal year may well go
over billion dollars.
In fact, Treasury officials will
be well satisfied if it can be held
to that figure, and few believe
that it can be.
Both Dodge Tax Boost
In the face of diminishing rev.
enues, due to the effects Of the
economic depression, and mount
ing expenditures under the con-
stantly widening fields of Federal
activity, heroic measures are go
ing to be necessary to avoid an
even greater deficit next year un-
| S taxes are increased.
Neither party wants to sponsor
a tax increase on the eve of a
national election.
Mr.. Hoover was back at his
desk this morning after 35 hours
at the Rapidan fishing camp,
wrestling with the problem Of
how to reduce War Department
expenditures without. seriously
curtailing the ArmyS efficiency.
All Ranking Heads
He had all the ranking heads
of the department with him, both
civilian and military, as well as
Representative Wood .(R.) of
Indiana, chairman of the ApprO-
priatiOnS Committee of the House.
This close examination of the
War Department is the first of
series of such examinations Of
Federal departments designed to
find ways of saving money.
Next weekend, the President
will take Secretary of the Interior
Wilbur and the heads of the In
terror Department to Rapidan for
a round-table discussion of In
terror expenditures. and, there
after, the Navy and other depart
ments will be taken up.
Make Stiff Defense
Just what the Rapidan con-
ference with the Army chiefs &C
compIiShed was not made clear
today. The White House issued
a rather general statement, as
serting that "it appeared even
more probable, as a result of the
conference, that real savings can
be effected and still maintain
the present standard Of ef-
ficiency."
Details, however, were wholly
lacking, and no specific projects
were cited where the pruning is
to be done.
It is understood that the Army
chiefs made a spirited defense
of their department and the Army
set-up in general. Among other
things, it was pointed out that
the present strength and equip
ment of the Army are at the
lowest point in many years.
One Army officer rather Bit
terly observed that the Army was
being made the guinea pig" for
successive economy experiments
in recent years.
Outlook Dismal
The condition of Treasury fl
nances and the predicament in
which the Administration finds
itself because of present and pros
pective future deficits inspired
Representative Byrns CD of Ten
ressee to predict today that the
deficit for the next fiSal wear
may we'll reach $4,000, 100000. -
Representative Byrns said:
"The simple truth is that.
notwithstanding extraordinary
appropriations for this year for
farm relief, for emergency build
: ing construction, which are not
included for next year and not
withstanding the fact that there
will be a reduction of $17,OOO,-
900 in the interest payments on
the public debt for the next year
as compared with 1881, when all
appropriations for the fiscal
year 1892 are finally made, the
Federal outlay for 1892 will al
most surely equal and likely will
exceed that for the current year
which closes June 80, next"
Fodder for Politicians
The Democrats plan to make
considerable capital of this situ-
ation-particularly if the Admin
istration is complied to sponsor
an increase in taxes.
Meanwhile, the Presidents plans
for the summer are in state OF
fluX
Originally, it was planned for
Mr.. Hoover to make long visit
in the West, with the establish
ment of a temporary White House
at Palo Alto. his Pacific coast
home.
Last summer, it was the drouth
and the cumulative effect Of the
business depression which oper-
ated to make him stay close to