Evening star., 1932-11-19
SLASHES IN BUDGET
ANNOUNCED AFTER
CABINET MEETING

Continued From First Page)
made last wear were used as a starting
point in calculating the fund requests
for most Government agencies.
From this point, the Budget director
began making substantial cuts, aiming
at the s500,000,00 reduction which
President Hoover requested early in
September.
Since his return to Washington, al
though it has been necessary for him
TO devote considerable time to the i'm
Uending war debt problem, the Pres
ident has been concentrating upon the
next budget. On his train returning
TO Washington he declared the budget
task was one Of the most vitei asks
he was facing for the momsnt and that
he proposed to complete this v-a-s- for
presentation to Congress when it meets
two weeks hence, before he gave any
thought to his annual massage to Con-
gress,
Three Plans Considered.
Meanwhile, sentiment for three-way
assault on the unb7lanced budget ap-
pears to be growing rapidly on Capitol
Hill
The methods generally discussed for
S7GO 900 900 mark, are a uniform sales
tax, deep slash into governmental ex-
penditures and legslizing beer for rev.
enue purposes All three are highly
controversial and their enactment at
the short session is considered ufeer-
tain in some quarters.
Despite opposition by prohibitionists
beer proponents have predicted Con-
gress viii modify the Volstecd act at
the coming session, but its reception by
President Hoover has not been deter
mined. Doubt has been expressed by
leaders such as Senator Harrison
Democrat. of Mississippi that support
was sufficient to pass beer bill over
veto.
s150,000, 600 Revenue.
On the basis of estimates made by
l. r. Parker, expert of the C3ngtes"
sional Internal Revenue Committee,
should beer be legaliZed by January l..
revenue from this source to the end OF
the fiscal year would not exceed $780,
900 900. if the tax last levied again was
applied.
At the present rate Of deficit increase,
this would still leave the Treasury shy
of more than $1,000, 100000 OF its ex-
penditures on June 80,
amounting to about $4,000, 100000 an
nually. the Congressional members are
scanning the remainder with view to
heavy slashes
Senator Harrison, the ranking Demo-
crat of the Senate Finance Commit
tee, and Representative Byrns OF Ten
neSsee chairman of the House ApSro-
priations Committee, both have said ap-
propriations for government operating
expenses would have to be pared closely.
Senator Mcclellan, Democrat, OF Tennes-
see, also SAID he was stronger than
ever for economy"
Further Pay Cut Urged.
Representative Huddleston. Democrat,
of Alabama, proposed today that the
annual Federal pay roll of 81 300. 900 900
be cut by 500 Geo, 600; the annual out
lay of about sl.000,000,000 to the Vet
erans' Administration be slashed $780,
100000 and the national defense ap-
propriations of about s700,000,000 be
brought down to $l00,000,000.
THE most we can cut the annual
operating costs of the Government Is
about $3.50, 600, 900 to 100000 900" q"
Huddleston said. ITO balance the bud
get, we will have to pass a general sales
tax"
Senator Harrison said the question Of
increased taxation, however, would have
to await party conferences before the
Democratic policy could be defined
Chairman Collier of the House Ways
and Means Committee said the l-cept-
a-gailon tax on gasoline, which is pro-
ducing more revenue than any OF the
other new leVies, expires on June 80
and in all probability would have to be
renewed at the short session.
The question of veterans legislation
is to be studied by Joint congressional
committee. headed by Representative
McDufie, Democrat, of Alabama. Hear
ings are tentatively scheduled to be
opened next week.