Evening star., 1934-01-04


The public debt on June 80. 1919,
the year after the World War, stood at
s25, ,482, ,034,4l9, higher than at the close
Of any fiscal year in the history OF the
country up to that time. The public
debt gradually dropped thereafter until
il stood at Sl6,185, ,308 299 on June 80,
1880. On June 80, 1882, the public debt
had risen again to sl9,487 O9,766.
Lifting of Pay Cut.
The President, in his budget message,
recommended that one-third of the
present IS per cent cut in the pay Of
Government workers be lifted and that
the pay cut for the fiscal year beginning
July l next should not exceed 10 per
cent
Whether there will be any restoration
of pay to the Government workers dur
ing the next six-month period will de-
pend upon an analysis now being made
by the President of the cost OF living re-
port submitted by the Department Of
Labor.
The President appended to his mes
sage on the budget legislation which he
asked be enacted, fixing the pay cut at
10 per cent for the next fiscal year,
with the proviso that he be permitted
to reduce still further the cut or wipe
it out in whole, if he finds that living
costs advance or other conditions
warrant such action.
He said in connection with economy
legislation:
The estimates of appropriations sub
mitted in the budget are predicated on
the continuation of certain legislative
provisions which are appended hereto.
The most important is that having to
DO viii roi11ptinY nf NnnoNpncatiNn Of
Federal employees. 1t is eminently
fair that, the cost of living having fallen
as compared with 1923, the employees
of the Government sustain some re-
duction in compensation.
Consistent With Policy.
This is not inconsistent with our
policy of advocating an increase in
wages in industry, for wages there had
fallen far beyond any reduction con-
templated for Federal employees and in
most grades are even now substantially
below compensation paid Federal en-
Of Is per cent,
Another legislative provision proposed
by the @ President is one e&empting the the
the prohibition against automatic in
creases in compensation for the Govern
ment service.
The estimates of expenditure for the
fiscal year 1885 were fixed at 1860 798,-
ZOO including the estimates for both
ordinary activities Of the Government
and the emergency activities. Estimates
of revenues for the fiscal year 1885
of foreign debt payments, of increased
liquor taxes. and of increased revenue
flowing from amendments to the exist
ing revenue law).
This would give the Government 6
surplus for the year Of Sl3,866, ,779
But the President declared it was neces
sary to continue recovery and relic
work during the fiscal year 1885, ant
additional funds would be necessary
Therefore, he proposed to ask the Con
gress for total appropriation of not Il
exceed S2,000,000,000 for continuing
these activities. This amount is no
included in the budget estimates, and !
appropriated and expended, Will br1nl
about the $4,000 100000 excess of ex
penditures over revenues for the flsca
year 1895 already referred to.
Have Loans Outstanding.
The silver lining to the huge publl
debt, as described by the President, /
found in the fact that the variou
governmental agencies have loans out
standing with book value OF S3,558,
5l6,l89. against which collateral or as
sets have been pledged. Furthermore
the proposed further increase of So.
600 600, 900 during the coming flscs
wear, for relief and recovery. would b
partially offset by loans made egains
collateral and assets pledged. Indeed
the secured loans made by the Govern
ment in the recovery drive will excee
by a considerable amount the figure
now given.
In addition to II