Evening star., 1934-04-01
TREASURY DEFICIT
BELOW ESTIMATE
Huge Contemplated Bor.
rowing Program Sharply
CurtaiIed. Il
BY the Associated Press.

BY the Associated FTeSS.
The Treasury will have to scoop
money out of its gold-lined bins at a
rate of more than billion and half
a month if the Government is to have
a $1,000, 900, 900 deficit on June 80, as
estimated by President Roosevelt.
The third quarter of the fiscal year
ended yesterday with emergency ex-
penditures still keeping to levels far
below those officially forecast by the
administration in submitting the
budget to Congress.
Figures for all but the last two days
Of the month showed all Government
outlays totaled but a little more than
$2,500 ,000, 900.
Borrowing Curtailed.
AS result, the huge borrowing pro-
gram that had been planned has been
sharply curtailed. Mr.. Roosevelt told
Congress early in January the Gov
ernment would have to borrow $6,-
000,000000 in new money before June
so, in addition to meeting maturities
totaling $4,000,0 100000.
Since then new securities issues
have aggregated 100000 900, while
total of something less than $1,000.-
100000 in maturing issues has been
refunded. Regardless of expenditures
the $4,000 100000 refunding program
must, of course, be carried out.
The lag in emergency expenditures
was attributed by officials yesterday
chiefly to two factors: The public
works program is still slow in reach
ing its expected proportions; repay
ments to the Reconstruction Finance
Corporation have kept its needs we'll
below estimates.
For the fiscal year ending June 80.
President Roosevelt told Congress
public works outlays were expected to
reach $1,677. 100 800. At the close Of
business on March 90 they amounted
to 1919 993,835.
Fund Would Go Over.
II the remainder is not spent in the
present fiscal year, it will be in the
next. Public works officials blame the
slowness with which the program IS
becoming effective on the States and
municipalities to which funds have
been allocated but which have yet to
let contracts for the work involved.
Mr. Roosevelt estimated the r. F.
C's needs at 1869, ,740,0 900. Thus far
the corporation has called upon the
Treasury for ST .284 ,445 095. When the
estimate was made the administra-
ton was considering a program of r..
F.. c. loans to private industry. since
virtually abandoned, which may &C
count for the difference.
In addition to S400. 600, 900 Of pub
lie works money for the Civil Works
Administration, Congress appropriated
5000 100000 more for that and relief
purposes, making the estimate for the
fiscal year 81. 300, 100000. The life of
the civil works program has just come
to a close with total expenditures of
about $500, 100000.
500, 900, 900 Savings.
This left a saving of s70O,00O,000
as compared with expected outlayS,
but this may be partially or largely
offset by increased Federal relief ex-
penditures necessitsted by taking men
from the civil works rolls.
The effect of increased veterans
payments and increased Government
empoyes' compensation, voted over
President Roosevelt's veto is COM
paratively negligible so far as this fis-
cal year is concerned. officials esti-
mate the resulting outlays before June
80 at about $65 100000
OF the entire roster Of regular Gov
ernment departments and bureaus
and alphabetical emergency agencies,
or,ly ono hoe eyceeded its hlIdoet eStj
mate to date. This is the Farm Credit
Administration. to which the Treas
ury has advanced s40,193722 as COM
pared with its budget Of 10000, 900
even.