Evening star., 1932-11-17
Bureau of Budget Plans to
Keep All Provisions of
Economy Act.
HOUSE COMMITTEE
YET TO DECIDE POLICY
Chairman Byrns to Call Conference
of Leaders to Fix Rule
for All Bills.

The Bureau of the Budget is provid-
ing for continuation Of all provisions
Of the economy act, including the
8h per cent pay cut and ban on leave,
in appropriations for Government estab-
lishments for the next fiscal year, it
became known today.
Originally, estimates were submitted
to the Budget Bureau on the basis that
prevailed up to the start of the present
fiscal year, but few days ago, it was
said, the bureau made known that these
estimates would be shaved 81a per cent
and that all other features of the
economy act would be projected into
the budgets for the forthcoming fiscal
year. This, of course, will do away
with the impounding clause of the
economy act, as the Government estab-
lishments will not get the money to
impound under the bureaus proposal.
At the same time, however, it was
said no policy has been agreed upon by
the House Appropriations Committee.
Yesterday subcommittee of this COM
mittee started hearings on the first
of the large appropriation measures,
that for Treasury-PoSt Ofhce, and
heard from Postmaster General Brown
the recommendation that the 1-3 per
cent pay cut be continued.
Roop to See Hoover.
The budget also was occupying the
attention of President Hoover The
Chief Executive had an appointment
this afternoon with ]. Clawson Roop,
director of the budget, who has been
studying the situation for several
months.
At, the Treasury, where Secretary
Mills has gathered the latest informa-
ton available to help the President
with his annual message to Congress,
figures today showed the deficit as of
November Is had passed $709, 900, 900.
Since July l expeditures have ap-
preached 1872, ,00o. 900.
At the same time today notice was
given by Thomas F. Flaherty, secretary
treasurer of the National Federation
of Post Office Clerks, that his organiza-
ton would use every effort to prevent
continuance Of the economy act for an
other year. He added that direct pres
sure upon merchants and business men
to convince them that a reduction in
mass purchasing power has retarded
economic recovery and should be aban-
doned as speedily as possible" has fea-
tured the federation's drive for repeal
Of the economy law.
He said continuation Of the law
would be an economic blunder Of far
reaching evil consequences.
In administration quarters acquainted
with the fiscal outlook, it was said the
deficit for the year would not be so
bad, but no figure was given as to the
probable amount.
Although no official information was
given for quotation, 1t was said that the
administration had told Congress dur
ing the last session that expenditures
must be cut $3.50, 900, 900 below the bud
get figures and that expenditures which
had been authorized by Congress would
cause the expenditure of more than
President Hoover's original budget sub
mitted last December.
The recommendations made last VIM
ter for reductions followed the lSrgeSt
expenditures in the history Of the Ma
tion in peace times, with the 1892 fiscal
year ending with a deficit Of nearly
$4,000, 100000 after expenditures had
totaled $4,000, 900, 900.
Seek New Tax Sources.
President Hoover's budget estimates
submitted last year totaled $4,112,900,-
900.
The administration statement on the
situation followed assertions by mem
bers of Congress of their intention of
seeking new tax sources.
1t was said that the new taxes were
bound to be ineffective so far as full
yield is concerned until the fiscal year
1884 and that members of Congress
apparently had failed to take into con-
sideration the fact that income taxes
will be collected in March for the 1882
calendar year and will effect a reduc-
ticn in the deficit.
No Government official has estimated
how much income tax will be collected
In the March payments, but the earlier
hopes were that they would run $780,
100000 or more.
The new excise taxes have been slow
in producing receipts, due-oficialS
have said-to the fact that many peo-
pie purchased large amounts of goods
before the law went into effect last
June, and that the Government has as
yet failed to obtain the full measure Of
return from the levies.
Chairman Byrns of the Appropria-
tons Committee intends to call together
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