Evening star., 1933-01-18
Text of Hoover Message
President Pleads for Balanced Budget as Basis OF
Recoyery-Cdlls Attention to Further Deficit and
Need for Enforcing of Strictest Economies.

CFrom the $50 Edition of Yesterdays star.l
The Presidents message to Congress.
on budget balancing follows.
ITO the Senate and House of Repre-.
sentatives:
In my budget message of Decembel
S, laid before the Congress the finan.
cial situation of the Government, to-
| gether with proposals for the next
fiscal year.
1T was pointed out that due to de.
creasing revenues and despite the eff
forts of the Congress and the admin.
istration, we we're again faced with {
deficit during the next fiscal year.
urged upon the Congress the necessity
| for further drastic reduction in ex-
penditures and increase in revenues.
| II now approach Congress again upor
this subject, knowing that the members
/ are fully possessed of the complete
| necessity of balanced budget as the
| foundation of economic recovery. ano
| to urge that action SnouId be taken
| during the present session to bring
| this about.
| Confidence Great Problem.
The great problem before the world
| today is restoration and maintenance
of confidence. I need scarcely repeat
| that the maintenance and confidence
in the financial stability of the United
| States Government is the first contrl-
button to all financial stability within
our borders and, in fact, in the world as
| a whole. Upon that confidence rests
! the credit of the States. the municipah-
! ties. all our financial institutions and
| industry-it is the basis OF recovered
employment and agriculture.
The increases in revenues enacted
at the last session have not had the
results hoped for because OF the con-
tinued economic stagnation. The IN
come of the Government for the next
fiscal year. nominally estimated at 81
$50 100000, is likely to fall short under
the present world conditions by any
where from 100000 900 to $500 900, 900.
Expenditures. tand ! speak in terms
of expenditures rather than appropria-
tions), because of the confusion caused
by carryover of appropriations for the
present fiscal year, including. Post Of
flee deficit. but excluding debt redemp-
ton, are estimated at about S3,77l ,0oU,-
600. If expenditures are continued dur
ing the next fiscal year at the present
rate, there would thus, be deficit of
from $920.000,000 to $1,l20, 100000 in
the next fiscal year exclusive of sink
ing fund charges.
Obviously the first necessity of a
nation of decreasing income is reduc-
tion in expenditures. My message OF
December 5, as supplemented, recon-
mende5 very large specific reductions
of appropriations and economies for the
next fiscal year. These proposals tin
cluoing the effect of previous appro-
priations and obligations) would reflect
an expenditure next year excluding debt
redemptions, but including Post Office
deficit, of about S3,233 600 900, a de-
crease as compared to the current year
of about $5SS,0o0,0o0.
S69o,0O0,0 900 Deficit.
Assuming that these economies and
reductions of appropriations will be
adopted, on this basis of calculation
there would still be deficit exclusive
of debt redemption reduction OF about
| S400 600, 90 to $500, 100000. Certainly
with the general economic outlook in
respect to income and the legislative
outlook with respect to recommended
economies, the latter figure is the most
likely of realization.
The first essential is that the maxi
mum appropriations snd economics set
cut in the budget me sage as supple
mented should be adhered to. The
second is that there should be no new
authorizations or appropriate MS brought
forward The third is that even the
appropriations recommended should be
reduced ct every point the Congress is
able to find an avenue therefor. So far
as appropriation bills as dealt with by
the House of Repre- entatives or the
committees thereof, the results have
| been disappointing Maximum appro-
priations for the different departments
which were recommended in the execu-
tive budget have not been adhered to.
MY executive orders to consolidate some
So Government functions into a few
divisions, with resulting economies. ap-
pears likely of refu-al by the Congress,
with resulting continuing waste. I re-
gret to say that the same forces are at
| work which thWarted the savings of
several hundred millicns We sought to
| effect at the last session of Congress.
| We are during the current year and
even in the next fiscal year suffering
from that failure.
| In the five departmental bills
adopted by the House or by the COM
mittees thereof at this session. a total
of appropriations we're recommended by
| the executive which wou' d result in an
expenditure exclusive of debt redemp-
! tom of So ,263 900 900. being a decrease
/ Of expenditures IN these departments of
| e4,400.000 under the present fiscal
year Some items in these bills have
been genuinely decreased by action OF
! the committees or the votes of the
House Others have been increased
| Still others have been given the an
pearance of reduction. but in reality
must be restored during the next fiscal
year by deficiency bills.
So, 500, 700 Decreases
THE Items in which there have been
genuine decreases in these appropria-
tons aggregate about s23, 100000 (but
Of this $10000.000 is reduction in the
| public buildings for which commit
ments have been authorized
| Items have been decreased which In
all probability will he required through
defic' encv bills amounting To approx
matelv $4l.420.000.
Items have been increased amounting
to approximately $50 100000.
There is thus produced an appear
ance Of slightly greater savings thar
recommended in the executive budget
but in reality an actual increase by ovel
S35 900 900.
If the Congress would accept thu
cuts recommended in the executive
budget and also the genuine cuts made
by the House Committee on Appropria.
| tionS. or as passed by the House. i
would represent a real decrease in Gov.
eminent expenses over those in tn
budget in respect to these bills of som,
s23 500 900.
There are yet remaining to be re