The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-04

Excess of credits-dedutt.
1t will be noted that many Of
these items, such as public works
fall under appropriations made in
1888, the actual expenditures not
taking place until after June 80
1884.
The above figures do not include
additional loans by the RFC. IF its
loaning authority is extended be.
yond June 80, 1884, it is contem-
plated that any additional loans by
it would thereafter be taken IRON
the new and additional recovery
fund hereinafter referred to.
The estimates of receipts for the
next fiscal year lending June 30
1885 exclusive of foreign debt pay
ments, of increased liquor taxes
and of increased revenue flowing
from amendments to the existing
revenue law, amount to 1894
665 ,479.
Therefore, exclusive of debt re-
tirement, these budget estimates for
the next fiscal year show small
surplus of $13,866,779 But it must
be borne in mind that this surplus
does not include any additional ex-
penditureS for extraordinary re-
covery purposes.
1t is clear that the necessity for
relief and recovery will still be with
us during the year 1934-35. Addi-
tional relief funds will be necessary
Further needs of the country pro-
hibit the abrupt termination of the
recovery program. No person can
on this date definitely predict the
total amount that will be needed,
nor the itemizing of such an
amount.
1t is my best Judgment at this
time that total appropriation of
not to exceed $2,000,000,O00 will
with the expenditures still to be
made next year out of existing ap-
preparations, be sufficient.
I shall therefore ask the congress
for appropriations approximatine
that amount.
This amount is not included in
the budget estimates. If appro-
priated and expended, therefore, ii
will change the small estimated sur
plus of $13,000,000 into a debt in
crease of nearly two billion dollars
1t is only fair, of course. to say
that such a debt increase would be
partially Offset by loans madt
against collateral and assets
pledged
Therefore. the total debt, if in
creased by the sum of two billion
dollars during the fiscal year 1885
would amount to approximately
S31 1874 100000 on June 80, 1885. Il
is my belief that so far as we car
make estimates with our present
knowledge, the government should
seek to hold the total debt within
this amount.
Furthermore, the government
during the balance of this calender
year should plan to bring its 1885,
expenditures, including recovery
and relief, within the revenues ex-
pected in the fiscal year 1886.
Let me put 1t another way: The
excess of expenditures over receipts
during this fiscal year amounts tc
over seven billion dollars. My esti-
mates for the coming fiscal year
show an excess of expenditure over
receipts of two billion dollars. We
should plan to have a definitely
balanced budget for the third year
of recovery and from that time or
seek a continuing reduction Of the
national debt.
This excess of expenditures over
revenues amounting to over nine
billion dollars during two fiscal
years has been rendered necessary
to bring the country to a sound
condition after the unexampled
crisis which we encountered last
spring. 1t is a large amount, but
the immeasurable benefits justify
the cost.