Evening star., 1933-12-27
RECOVERY RUNS Up
DEFICIT OF BILLION
Roosevelt Concerned Chiefly
With Ratio OF Income
and Outgo.
BY the Associated Press.

BY the Associated Press.
President Roosevelt displayed no
surprise today at the latest Treasury
statement showing a deficit In Govern
ment finances of a billion dollars, and
it was reported at the White House
the figure would mount even higher
as a result of the recovery program.
The Chief Executive was said au-
thoritatively to be interested in making
certain that income in revenue keeps
pace with the normal current expendi-
lures and he understands this income
and outgo is about on an even basis.
The deficit is expected to represent
only a part of the extraordinary ex-
penditures being made by the Govern
ment in behalf of the recovery drive.
Continuing his preparation OF the
budget to be submitted to Congress
next week. President Roosevelt called
in Henry Morgenthau, jr., Acting Sec
retary Of the Treasury, and Lewis
Douglas, budget director.
Messages Unwritten.
flOOSGftlL LOlu uCWopuPSl hiSh oo
his press conference that he has not
started writing his budget message nor
his message on the state OF the Union
to be read to Congress on the opening
day, January 3.
Asked to give his views on past
events and predictions Of those to come
at the turn of the year, the President
replied that he was willing to let the
same old forecasters do the job and
continue to be "the goat"
The Government, meanwhile. con-
tinued the price Of domestic gold at
s34.06 an ounce. 1t was the seventh
successive time this figure had been
announced Bar gold in London was
worth s32.52 on the basis of sterling
opening at s5.141a to the pound.
As to foreign trade, the Commerce
Department reported a favorable bal
ance of s56,0O0,o00 for November
s184, 100000 in goods going abroad
while s128. 100000 came in.
Another development was an estimate
by Walter J. Cummings, chairman of
the Deposit Insurance Corporation,
that the temporary guarantee fund be-
coming effective next week will COM
pletely guarantee 81 per cent of the
bank accounts of the Nation
Praises Plan.
Cummings termed the insurance Of
deposits up to $2,500, which starts
January /, "the most constructive plan
ever devised for the protection Of bank
deposits Other directors of the cor
poration concurred with him in saying:
Deposit insurance should have stim-
ulating effect upon business throughout
the country. In the first place, 1t
should forever end the fear of runs on
banks which are members. Moreover,
II should return large sums from hoard
ing, making it unnecessary for banks to
carry such large bank reserves; free
credit and relieve unemployment"
Meanwhile, lines for a congressional
skirmish over monetary matters, pre-
dicted for early in the approaching ses-
sion, were being drawn both at the
White House and on Capitol Hill, and
President Roosevelt listened for reac-
tionS to a blast against his currency
moves by Senator Reed, Republican, Of
Pennsylvania.
At the Capitol, Republican leaders
were getting ready to outline minority
party policies for the coming session
with their followers. Senator McNary
of Oregon and Representative Smell of
New York, minority leaders in their re-
spective branches, arranged for a series
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