The Waterbury Democrat., 1932-12-07
President Sends In \ His Final Bud g ct
 Message To Congress
National Govt Will Cost Taxpayers Estimated Total of $4,2l8,8O8,344 in Recommends Gen- eraI Manufacturers Tax of 2N Per Cent on Everything Except Food
BY HENRY r. MISSELWI1Z United Press Stan Corrcspondcnt) )

BY HENRY Y. MISSELWITZ United Press Stan Correspondent
 Washington, Dec 7--(U. p = President Hoover to-day recon. mended that congress balance the budget by enacting 2 IA peI cent general manufacturers exise tax, continuing the federal gaso- line tax another year, and effect ing new economies in government operation.
 Mir Hoover exempted food from his general tax program while he did not mention it in his budget message, MT Hoover's annual message yesterday indicated a pos sibIe exception of clothing also. He made no mention of beer as q pos siblc cource of revenue. He estimat- ed federal needs for the fiscal year ending June 30, 1884, at S4,21S,- SO3,344 compared with this esti- mate year ago of $4,G01, 1,479, l01 for the current year.
 The presidents budget balancing program, presented in hfs annual budget message, was accompanied by a warning that drastic action was needed 10 avert disaster ir federal financing.
 The three main points of his proposals:
 1. A IA manufacturers ex- else tax estimated to yield rev enue of $355, 900, 900.
 2. Governmental econo m s designed to save $580, 000,000.
 ,. Continuation of the federal gasoline tax, estimated to pro- x,fI f.f etrT mn mn
 The presidents excise tax pro- posal fs similar to that scuttled in a house mutiny when offered last winter by democratic leaders. It Is not termed as sales tax, the admin istration asserting that it would be levied at one point only, with the manufacturer. The broad excise taxes proposed would supplant some of the nuisance" taxes in last years emergency revenue act.
 The governmental economies would be effected by:
 1. Government salary reduc- tions which combined with present furlough system will average about 14.8 per cent to those earning moro than $1,000. This was esti- mated to bring a saving of $55,- 000,000.
 2. Eli m in a t 0 of public works.
 ,. Savings of $89,3S6.227 in appropriations for war veterans.
 4. Reduction of $20, 100000 in rivers and harbors appropria- tions.
 5. Cessation of highway con- ,struction, a saving of $120.000,- 900.
 6. General departmental saw ings, the largest being In the ag- ricultural department.
 z. Resistance to new appro- : priations.
 There were no suggestions for revision of income or corporation taxes.
 There was no recommendation for changing the increased postal rates now in effect
 The recommended appropriations for prohibition enforcement was $650, 900 less than that for the cur rent year, but this reduction Is to he accomplished through salary cuts. The message listed ar estimated need for 1894 of $9,599,- 14S, compared with the 1883 ap- propriation of $10,250,00O.
 In proposing his budget balanc- ing plan, MT Hoover urged:
 "--that every effoTt be made to limit expenditures and avoid addi- tional obligations not only in the interest of the already heavily bur dended taxpayer but in the interest of the very integrity of the finances of the federal government"
 The fiscal policies recommended by MT Hoover aye for the year end ing June 90. 1884. They would cover roughly the first year of Franklin D. Roosevclt's presidency and would go into effect if approv- cd by congress after MT Hoover's retirement on March 1.
 Mir Hoover estimated that the current, accomplishing deficit would reach nearly $1.150,O00 ,000 by June 80. 1883. which marks the end of the fiscal year 1932-33. He said increased receipts and decreas- cd expenditures still would leave a deficit of $307,192.1s7 for the fis- cal year of 1894 If new sources of revenue were not found.
 The combined revenue of the ex-i else and gasoline taxes would amount to $492, 900. 900. If MT Hoover's estimates are accurate and If hls program is enacted by congress. it would create an esti- mated treasury surplus of $84,807,- = S13, exclusive of public debt re- qiiirements, on June SC, 1884.
 \ saving of $2O.000, 900 was esti- mated in the naval figures, while the army appropriations were cut nearly $110. 900. 900. A reduction In tho enlisted strength Of the marine corps to an average of 13,600 men is contemplated. The enlisted strength of the navy is 10 be main tained at present figures.
 The recommendations provide for completing the modernization of the battlesblps Mississippi and New Mexico. and continuing work on the Idaho; continuing at normal rate .~ork on ships now under construc-