The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-02
LADORIOUS TASK OF CUTTING
EXPENSE Starts IN SENATE.
HOOVER'S MESSAGE JEERED
Lawmakers Settle Down to Final job
Involved in Balancing of Budget;
Sharp Antagonist Flares.
HARRISON LEADS RAZZBERRY CHORUS
Presidents Heroic and Historic Dash Had
Nothing to Do With Passage Of
Tax Bill. He Declares
BY RUTH FTNNEY
Times stan Writer

WASHINGTON, June 2.-The sem
ate settled down today TO the final
task involved in balancing the bud
get-reduction Of government ex-
penditures.
In solving this problem. it, at the
same time, may decide on a program
for federal relief
The first hours debate on the SEN
ate economy bill disclosed the close
relationship between the two, and
while the Garner and Wagner relief
bills still are both pending before
committees. ageement on a general
policy for financing public works
considerably would shorten both ma
jor tasks remaining before adjourn
ment.
The first hours debate disclosed,
also sharp antagonism in the senate
to the committee plan for effecting
federal economies largely at the ex-
pense Of government workers.
Proposals Are Studied
Overnight, the senator's, in their
FIRST opportunity TO study proposals
Of the economy committee, have
been considering alternative means
Of saving the necessary amount.
one of the first alternatives laid
before the senate proposes financing
ri fQ0o ewraY,Iffftrac for y1,,k II
works by bond issue instead of by
current taxes. This proposal is part
Of the Wagner relief bill
The fiscal situation now confront
ing the senate is this.
II the tax bill finally becomes law,
substantially as adopted by the sem
ate, savings in current appropria-
ton bills necessary to balance the
budget are. according to Treasurer
Secretary Ogden L. Mills, $3.50 000,-
600.
President Hoover placed the fig
ure at $500 100000 in his message
Tuesday. allowing for possible neces-
sary deficiency appropriations.
Millions Must Be Trimmed
OF the saving to be made SAL
100000 has been accomplished al
ready in the house of representa-
tiveS. This is the amount by which
the house cut the appropriation
bills beneath the estimates submit
ted by the budget.
That leaves an additional $685.
100000 20 be saved by the senate,
if Mills figure is accepted, or $685.
100000 according to the Presidents
estimate.
The senate already has trimmed
S17,500,000 of the appropriation
bills it has passed on, including
those for interior, state, justice,
commerce and labor departments.
This means that an additional
s191 100000 remains to be saved
under the Mills estimate, or S241,-
100000 under the Hoover estimate.
Three Ways TO Slash
There are three principal ways
under consideration by which this
might be done.
The economy bill now pending
before the senate proposes to save
S23S. sos, 900 largely through 10 per
cent pay cuts in federal salaries,
reduction of annual leave with pay.
reduction OF veterans benefits. of
vocational education. and so forth.
II it should be passed without
substantial change. small additional
economies would have to be made
in the remaining appropriation bills
10 achieve the amount asked by the
President.
The second plan-backed by SEN
ator Elmer Thomas Dem. Okla -
provides for transferring public
works expenditures from the annual
supply bills TO the relief bill. where
they will be financed by government
bonds.
Against Salary Cuts
This Immediately would effect
savings Of about $500. 900 900 in the
budget. less a small amount for
carrying charges on the new bonds.
It's adoption would make unneces-
sary further consideration OF salary
cuts.
The third plan would call for dras-
tic cuts in certain functions of the
government, such as ship subsidies.
prohibition enforcement. national
defense. and other debatable items
Of expense.
Comments of senators upon first
presentation Of the economy bill
Wednesday seemed TO indicate I'M
alierable opposition to acceptance of
10 per cent salary cuts for low-paid
workers, and also for those receiving
more money.