Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-01-09
DEMOCRATS FACE
TEST ON FINANCES
Hope to Balance Budget, but
Hesitate to Cut Expenses
or Increase Taxes.
BY DAVID LAWRENCE.

Balancing the budget has become the
paramount test of Democratic cohesion
and leadership.
Although President-elect Roosevelt
has given his views to the Democratic
chieftains in beth Houses, the perplex-
tiles of the revenue situation are such
that there is no definite plan in sight
al yet.
The estimates of needed revenue are
ell based on the assumption that ap-
proximately $500, 600 900 will be collect
ed from foreign governments when, as
a matter of fact, the world situation
indicates clearly such payments will not
be forthcoming. It is not possible, of
course, for Congress officially to take
ccgnizance of the expected default on
purposes the item may be considered
as doubtful from an income standpoint
Hope to Get Closer.
The Democrats naturally feel that If
they can come within two or three
hundred million dollars of balancing the
budget they will be doing better job
than their Republican colleagues, who
have got no closer than billion year
Already the cry has gone up from
Senator King Democrat, of Utah) and
others that the campaign pledge for
reduction in expenditures is being aban-
doned. The Democratic national plat
form promised Is per cent reduction
in the Federal budget. This cannot
possibly be accomplished without heavy
clashes in the Veterans Bureau as well
as in the appropriations for public
works and public roads and the ma
tional defense
loff
peldge somewhat in one of his cam
paign speeches by declaring he will seek
a rs per cent cut in the current opera
ton of Government. This was taken to
mean the one-fourth horizontal reduc-
ton will be applied upon budget of
less than $4,000 100000 The present
Congress has before it recommendations
from Mr.. Hoover which call for net
reduction CT half billion dollars.
Prefer to pass Buck"
Congress, however, is not ready to cut
the Veterans Administration as deeply
as would be necessary to achieve a bill
lion dollars year reduction. There is
talk Of grant of blanket authority to
Mr.. Roosevelt to suspend Federal ap-
preparations at will when he becomes
President, but there is some doubt as
" tl4c COlSGllullOlldIlty VI IllS pTCpOSaI.
1t is clear that Congress would prefer
to have Mr.. Roosevelt carve out various
items in the expenditures of the Vet
Grams Administration and also other
appropriations which are surrounded
with political hazards.
AS a matter Of fact, the Democrats
are in mood Ito pass the buck" to
their new leader on almost everything,
but he is showing an intimation to
pass it right back to them The an
nouncement of 81 plan to broaden the
income tax base has sent chill up and
down the country and Mr. Roosevelt
was quick to say that the idea was not
his. but that of congressional leaders.
He recognizes that nobody who spon-
sors an increase in taxes is going to be
popular. Members of Congress feel that
two years hence they will encounter diff
hculties in retaining their seats if they
will have spread taxation to include
many people not now taxed.
Reduction Also Difficult.
The alternative, namely, consider
able reduction in Government expenses
also is painful to Congress because pc
litical groups are ready with their axes