Evening star., 1933-07-02
TREASURY DEFICIT
: IS S1,7&,0)Q,0())
Expenditures Likewise Drop,
Rejecting SIashes in Fed \
eraI Salaries.
9y the Associated Press.

es LHC hSSoSidtcO ACoS.
The Treasury put the thought OF a
Sl,7s6, 900 900 deficit behind it yesterday
and started on a new fiscal year with
Arm intentions and fresh hope of max
ing the governmental income bulk as
large as its outgo.
The intention had already been made
known through reductions in veterans
expenditures, slashes in salaries and
the most rigid economy program gen.
orally that any administration has put
into effect in the regular Government
departments for years. A factor that
strengthened hope was an increase in
business which is expected to be re-
fected in additional governmental
revenue
The formal announcement that Treas
ury spending had exceeded income by
S1,786, 10000 came from Dean Acheson,
Acting Secretary of the Treasury. He
said receipts in the fiscal year, which
ended yesterday, were s2,080,0o0,0 900,
with an outgo of 1896, 100000.
The Acting Secretary went into de-
tail on the reason for the deficit, the
third in succession. He said that not
withstanding new taxes levied in the
tax bill a year ago, the new beer taxes,
the receipt of nearly s99, 100000 in war
debt payments from foreign countries,
the receipts for the year were only
s74,o00, 900 more than in the preceding
year.
Fewer Expenditures.
The expenditures however. were
$1,000, 10000 less than year ago, when
the deficit was $3.50 900 900. They
reflected reductions in governmental
salaries. and lessened spending. Fewer
taxes were refunded and the postal
deficiency and payments on adjusted
service certificate funds were less.
while there has been an improve
ment in business conditions during re-
cent months the Government revenues
for the fiscal year 1888 were not mate
rally affected" Acheson said.
The 1888 expenditures included
about S461 100000 Of public debt re-
tirements, mainly for the sinking fund.-
the deficit, exclusive of such retire.
This deficit of S1,325, 100000, to-
gether with net payments on account
Of advances made to the Reconstruction
Finance Corporation of s1,277,000, 900,
an excess of expenditures on trust
fund accounts of s5,000,000 and the
increase of s445, ,000,00 in the general
fund balance, resulted in an increase
of s3052,o00,000 in the gross public
debt"
The increase in the public debt
brought the total on June 80 to s22,-
539,0oo,000, as compared with sls,487,-
100000 on June 80, 1882.
Acheson said the average annual in
terest rate on the outstanding public
debt on June 80 was 3.35 per cent, as
compared with the average rate OF $50
per cent on June 80 year ago.
Income Tax Receipts Drop.
On the income side of his ledger the
Acting Secretary said income tax re-
ceipts totaled $746000,O00 which was
S311 100000 less than the year before,
Notwithstanding heavier levies that were
effective in 1888.
This is striking evidence Of the ef-
feet which the depression has had on
one of the main sources of the Govern
ment's revenue" Acheson said. The
amount of income taxes received during
the last six months of the fiscal year
1888 was about $39, ,000,0 900 less than the
corresponding period in the fiscal year
1882, although much higher rates were
in effect in the 1888 period"
Miscellaneous internal revenue, he
said, totaled s858, ,000, 900 or $685., 10000
more than for 1882, the increase being
due to the So-called billion dollar tax
bill and the beer taxes.
Customs duties amounted to $751;
100000, decline Of S77,000,oo0 from
1882. The customs receipts, Acheson
said, was another source OF Government
revenue which had been materially af-
fected by the slump in business.
The decrease OF $1,000, 100000 in ex-
penditures, Acheson said, was accounted
for in part by S500,000000 for Recon-
struction Finance Corporation capital
stock spent in 1882 which was not
duplicated during the last year. To this
was added SIPS 100000 for Federal Land
Bank capital stock in the 1882 fiscal
year, $21, 10000 decrease in Treasury
expenditures, 31,000000 dropped in
War Department expenditures due pr1n-
cipally to reduction in construction
work, $68,00o,0o0 dropped from the
Department of Agriculture, $30,000,0 900
for tax refunds, $86,000,000 for postal
deficiency, and $119,000,0o0 for the
veterans administration.
He said there was a decrease in all
general departmental expenditures on
account of reduction in salaries Of the
Government employees.
The plans for the new fiscal year call
for virtually Is per cent reduction in
the expenditures of every governmental
department.
Several thousand Government en-
ployes are being either dismissed or
furloughed in cutting the departmental
budgets to fit the allowances that have
kaen n, ado for the new wear