Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-06
POSTAL DEFICIT
S8D,OOO,0)) NET
Brown Recommends Cut in
Expenses and Wage in
Particular.

4 net postal deficit of approximately
$50 1000 600 today was forecast for the
current fiscal year ending June 30 next,
In the annual report of Postmaster
General Brown. in which he recon-
mended reduction Of postal expendi-
lures "in general and the wage ac-
count in particular. to balance the
books of the Post Office Department,
The net deficit in the past year was
2,246, 1880.
Laying 1.-THE present disappointing
volume" of business to "the continued
commercial stagnation," Brown outlin-
ing his views on re6u Of eXpendi-
lures, emphasized that in his judgment,
resort should not be had to further
rate increases as a means Of balancing
the postal budget"
For the year ending June 80 last,
which Is covered by the report, Mr..
Brown said postal receipts were $685.
I'll ,92294, and audited expenditures
totaled $793, 1872, 53403, for gross de-
ficiency of S2o5 ,55O,611.09. Included in
this gross was $50, 3O4, 422. SO for ocean
and air mail SubventionS, free mail
service for Congress and the executive
departments and other non-postal func-
tons. This net, exceeding S152.000,000,
compared with net of $93,016,8Sl. 80 for
the preceding year. The gross for the
previous year was SAG, 066, 189 Sc.
$500, 00O,0O Revenues.
A preliminary estimate for the cur
rent fiscal year. the Postmaster Cen
eral said, indicates revenues approx
mating $500, 1000, 900, and gross expendi-
lures of $735, 100000. Allowing for the
non-poStal disbursements will put the
net at about $50, 100000, he explained.
The new rates, which went into Ell
feet in July, are figured to raise $780,
10000 this year, according to the pos
tai head. who said there had been mo
unexpected diversion of business from
the mails as the results of the higher
rates. but added they had resulted in
diminishing use Of mails by companies
sending out bills.
In this connection, he urged return
10 the two-cent rate for local mail,
saying loss of revenue sis believed to
be justified" because Of the lower cost
Of this service and ''the widespread
public convenience which will result"
With this change and such others as
experience may suggest, Brown sug-
gested existing rates should be con-
tinued until the postal finances have
been restored to a sound basis"
Until that time he said, lit is the
departments view that the postal IA
eilities should not be extended or en-
larged, except as may be necessary in
new and growing communities, and
that non-eSSential service should be
everywhere dispensed with
Lower Rates Desirable.
Increasing revenues from a return OF
business activity, he said, should be
returned to the public through lower
postage rates as soon as this can be
done without destroying the balance"
between postal receipts and expendi-
lures.
The mail volume has declined to
about the level of 1922. Brown said,
and revenues have fallen off S117,-
100000 since 1880, while expenditures
dropped "but SIC, oo0,0 0o" He explained
that fixed and contracted charges
which can not be suddenly curtailed
to correspond with shrinkage In the
volume of mail" prevented a further
decrease in expenditures.
The economy law saved about SAL
100000 for the department this year
he said, and was expected to be pro-
ductiye of a S50,000,000 saving in the
next year. Brown added, however, that