Evening star., 1932-02-24
BIC SAVING OFFSET
IN i. s. SUPPLY BILL
Postal and Treasury Cuts
Balanced by Building and
Added Debts.
BY the Associated Press

Dy the ASSoClaIe0 PreSS.
Many millions of dollars carefully
culled from next years operating costs
OF the huge Treasury and Post ONCE
anced by additional public debt require
ments and the Federal building pro-
gram, in the annual supply bill reported
today to the House
In the biggest regular appropriation
measure, $1,059,0 $685. 900 has been set
aside to operate the two departments,
and $l,l61 .687, 900 for public debt re-
tlrement, interest and other permanent
outlays. These sums total nearly half
OF the S4600,000,00O budget submitted
by President Hoover.
Inc Appropriations Committee cut
S22,677, 900 off the budget estimates for
me operating expense bill, reducing this
S44,60S,O00 below current expenses. The
Post Office Department received ssO5,-
oo6,oOO. or $7,972, 900 below the budget
and S37,297,000 less than this year. The
treasury was allowed S254.311 900, or
Sl4, IO4 900 less than the budget and
1881 900 below current outlays. The
Democratic economy knife pared a net
per cent savings from the direct ap-
preparation measure.
Sinking Fund Increased.
An increase of sII8666 900 in the
permanent outlays was caused largely
ny increases to $426, ,489.000 IN the sink
ing fund to retire the public debt, and
to $640, 900, 900 in interest, and by S69,-
100000 charged off on cash repayments
by foreign governments.
Secretary Mills explained to the COM
mittee this was due to an increase in
the amount of the public debt outstand-
ing resulting from the issuance of
bonds to meet the Treasury's deficit"
Mills said the surplus $3,400, 900 900
paid into the sinking fund since the
World War above legal requirements
mad been about counterbalanced by
So. 100000 increase in the public
debt.
You have drawn on your reserve
fund, and when we approach the
fiscal year 1888 there are only two
things to do. and to do just as vigor-
ously as We know how" he told the
committee. Cut expenditures to the
bone and raise taxes until the Ameri-
can people and the rest of the world can
be assured that during the fiscal year
1888 current revenues will balance cur
rent expenditures, and that while we
cannot reduce our public debt in 1888
through operations of the sinking fund,
under no circumstances will the public
debt be increased after June 80. 1888"
Mills recommended the abolition of
bureaus to further economic in Gov
ernment expenditures, saying there are
some that could disappear without doing
any harm to the Government"
Following its course laid down by
Chairman Byrns, the Democratic COM
mittee Slashed many items, but allowed
$l33, ,406 900, an increase of S25, ,99l, 900
in tho hlYr1n for r1ithIip h1lillinO
construction to aid employment on pre-
viously authorized projects. 1t made
no new authorizations OF projects, and
cut the budget estimates by $l2,785, 900.
Economy Cuts Outlined.
Under the Treasury, divisions to re-
ceive economy cuts included the Coast
Guard. which received $28 1872 900, or
sso5, 900 less than the budget and S4,-
098000 below current expenses, Gus
toms Service, $22, TOO, 900, or 81 ,283 900
less than for this year; Internal Reve-
nue. Bureau, $33 $4,000, or $26,312,000
below 1882 Industrial Alcohol Bureau,
$4,725, 900, or $89, 900 less, and the Pub
lie Health Service, $11, ,42i 900, q cut Of
$697 900, ss@
Postmaster General Brown estimated
before the committee that the postal
deficit for the current year would
reach about S200,000,000 due to de-
cline in revenues, which, he said, would
total about $500. 900 900, compared to
S656 .o00, 900 in 1881.
that about $50, 500, 900 Of the deficit was
due to ocean and air mail subsidies and
other non-postal functions, and said
the only substantial increased item was
that for transportation Of foreign mails
from $50, 200, 900 to $3S,8l6,000, due to
contracts entered into in an effort TO
build up the merchant marine.
While the committee cut the domestic
airmail appropriation from 100000
to SIC, 9,00o, 900 for next year, it left un-
changed the 100000 for foreign air
mail transportation. 1t noted that reve-
nues of $6,210,000 from the domestic
airmail service were S1l 1888, 900 below
expenditures and said Postmaster Cen
eral Brown would seek further decreases
in the contract rates paid airmail
operators.
44-Hour Week Blamed.
Chairman Byrns reported that the
44-hour week instituted in the postal
service last year had increased the cost
to the Government $7000,000 a year.
Through economies and reduction in
personnel by not filling vacancies and
by not increasing salaries, the COM
mittee effected saving of S17,0 900
in postal employees pay as compared to
this year. A total decrease Of $7,972000
under the budget estimates was recon-
mended on allotments for personnel
The measure carried provisions pre-
venting increases in salaries of en-
ployes, filling of vacancies except where
necessary, purchase OF foreign made
goods when domestic materials may be
bought, or the payment Of more than
$3.50 for any automobile, except buses
and trucks It also abolished % offices