Evening star., 1933-11-17
DOUGLAS PLANNING|
BIG BUDGET SLASH
Adheres to Idea of Cutting
Federal Expenses rs
Per Cent.
~ the Associated Press.

~ the Associated Press.
A two and one half billion dollar
budget for 1885, which would care for
the ordinary expenses OF the Govern
ment and make allowance for an ex-
penditure of $i35, 100000 to restore the
pay cut If living expenses justify, is
the goal Of Budget Director Douglas.
This was made known last night at
the same time rumors were dispelled
that the shake-up in the Treasury was
to bring about the resignation OF the
Arizonan.
In informed quarters Douglas was
represented as being determined to fol-
low along with President Roosevelt's
campaign pledge to cut the normal ex-
penses Of the Government 25 per cent.
Intends to Stick 1t Out.
His attitude was said to be that he
felt he had been delegated the job of
slashing Government costs to within
income and that he intended to stick
and finish it.
AS the law is now written, the pay
expenditure will be up to the Presi-
dent, the amount to be restored to be
dependent upon the level to which liv-
ing costs rise.
At least part Of the 10 per cent cut
Is expected to be given back before the
next fiscal year, however, as January l
is the date when the schedule next
must be set, and study now is under
way to determine what is to be done
ut that time.
Estimates for the first complete an
nual budget Douglas has handled now
are in the final stages of preparation
for submission to the coming session of
Congress.
November q Is Set.
Those for the first of the nine reg
ular annual supply bills-the independ-
ent offices measure containing esti-
mates for the Veterans Bureau-are to
be sent to the House Appropriations
Committee by Douglas on November 27
Estimates for the Navy, Justice, State,
Commerce and Labor Departments are
to follow soon thereafter to permit ap-
preparation subcommittees to hold hear
ings in December and to whip bills into
shape for House action in January
The ordinary budget estimates in
clude about $650,000,000 of anticipated
post Office expenditures which are not
expected by Post Office Department
officials to exceed postal revenues next
year. Should this hoped for offset oc-
cur, officials pointed out, there would
be no drain on the Treasury by this
department.
Figures Not Included.
The budget estimates prepared by the
bureau do not include figures for ex-
traordinary expenditures or public
works and relief purposes, nor for the
public debt sinking fund and interest
requirements, which aggregate $1,159,-
100000 for the current year.
From high official sources 1t was
learned that the administration has not
definitely decided whether it will ask
for additional public works employment
funds but 1t was generally conceded that
more relief funds would be requested Of
Congress.
This was attributed in official sources
to a division Of opinion among advisers
of the President over whether 1t would
be necessary to supplement the SO, ,300,
100000 public works fund, most OF
which has been allocated.
The Government is faced with the
problem of reinancing large portion
of the public debt within the next few
S588, 100000 deficit between ordinary
receipts and expenditures for this year.
Economy Imperative.
In order to facilitate the refinancing
some Government officials indicated
they regarded it as imperative that
much of the economy program begun
by President Roosevelt last Spring be
continued by Congress If at all feasible.
However, it was said that some Of the