Evening star., 1933-12-28
Expected to Request Con.
gress to Approve S6,OO0,-
100000 Budget.
"PAY-AS-YOU-GO" BASIS
WITHOUT TAX RISE SEEN
Believed to Be Considering Recon-
mending Renewal Of Loaning
Power of r. F. C.
BY the Associated Press.

BY the Associated Press.
High Democratic spokesmen described
President Roosevelt as determined today
to concentrate primary attention OF the
Seventy-third Congress upon a budget
designed to provide an $500, 900 900 sur
plus above ordinary Federal operating
costs In l934-35.
Although reconciled to q present.
year deficit well above the billion mark
because Of emergency expenditures, the
administration was said to have set
down tentative budget estimates read
ing: Income. s3,4oo,o 900 900, ordinary
outgo, s26Oo, 100000.
$4,000, ,OOO,O May Be Asked.
The total to be requested Of Congress
has been described IN some quarters as
possibly reaching the $4,000 900 900
mark, including emergency spending.
Sources close to the administration,
however, spoke Of at least a partial
"pay-as-you-go" basis without major
tax boosts through Reconstruction
Finance Corporation loan payments
estimated to total another S700 900 900.
The President is expected to recon-
mend a renewal Of the loaning power
Of the Reconstruction Corporation
which expires January %, and it was
considered likely that Congress stimuli
taneously would boost its loaning
strength by the amount asked by MI.
Roosevelt
There also was possibility, however.
that the biggest demands for these
loans might well fall in the current
fiscal year, year in which the White
House expects expenditures to exceed
receipts substantially.
Jesse Jones, Reconstruction Corpora
ton chairman, said upon leaving
White House meeting yesterday that no
decision had been reached on how
much additional funds his organization
would ask. He said he did not favor
direct loans to manufacturers and In
dividuals.
In connection with direct industrial
loans, as well as aids to municipal
financing, it was thought likely in some
quarters the banks would be relied on
to make more money available.
Jones, who has said the railroads
would need assistance In meeting S400,-
000, 900 of maturing obligations during
1894, does not favor advancing more
than Is per cent from Government
funds.
Mapping Program.
AS the President continued today to
shape his program for the coming ses-
sion, there were authoritative indica-
tions that he intended to press ahead
his gold buying commodity dollar plans.
Administration officials interpreted
late figures, showing American foreign
trade In November to have the largest
favorable balance in months, as at least
partial result of the gold buying pro-
gram, with its accompanying dollar de-
probation abroad.
During November the dollar fell from
S4.70 to the pound to $3.50 before re-
, turning to s5.l3 on December l. The
dollar franc trend was similar
The r. F. c. again offered today
s3406 an ounce for newly mined do
mestic gold.
This price was repeated for the
strength abroad.
Bar gold in London was worth S32 i8
an ounce on a sterling opening Of
s509l2 to the pound.
Support is Promised.
Meanwhile, Senator Connally, Demo-
crat. of Texas, today told the President
him on his commodity dollar program
and would support it.
Connally, a member Of the Finance
Committee and an original advocate
of dollar devaluation, demanded that
the Federal Reserve system surrender
all its gold to the Treasury.
The Senator declined to intimate to
newspaper men in any way the views
of President Roosevelt who is care
fully guarding his monetary moves.
Connally predicted Congress would
insist upon the Reserve system sur
rendering its gold.
Il told the President I am strong
as horseradish for his dollar devalua-
tion program" said Connally. Con
gress and the people are behind him
on his money program and will stand
by him"
Speculate on Message.
Although the content of the Presi-
dents annual message remained known
only to him, it became apparent Mr..
Roosevelt, in addition to resubnitting
several unfinished items from his extra
session program, might make suggeS-
tions for permanent railroad legisla
ton, regulation of stock exchanges and
a communications control plan.
Among the unfinished business is the
st. Lawrence seaway pact ratification
and legislation to grant the President
power to appoint a nonresident Gov
ernor OF Hawaii and declare arms en-
bargoes against shipments Of munitions
to belligerentS. In addition the Chief
Executive will send 10 the Senate scores
Of recess appointments.