Evening star., 1934-01-07
SPENDING SPEED UP.
LEAVES SKEPT|C|SM.
R. F. c. Goes at Pace That
Will Equal Presidents Plan
if 1t Is Maintained. .

The start Of the spending spurt
projected in President Roosevelt's CO.
lossal budget program was suggested In
the daily Treasury statement issued
yesterday.
In the first three business days Of this
year. the Reconstruction Finance Cor
poration paid out s96,3l7 ,6O3.5O. 1t In
creased its total disbursements for the
fiscal year, up to Friday night, to $685.
e23,79l as against the s3,96s, ,740, 800 net
expenditures Mr.. Roosevelt has prof.
ected for this greatest of all Govern
ment lending agencies for the IL months
ending June 80 next.
While advances at this rate of s32,-
100000 day would deplete the prof.
ected balance of $3,275, ,8l6 .6o9 in the
SIX months ahead and justify the Pres
ldents estimates. most OF official Wash
lngton remained to be convinced that
he would carry out his complete spend
Ing program of more than 81 900 .ooO,-
600 a month for the rest of the fiscal
year.
Disbursements Speeded.
The r. F. c. was shown bv the
new year with disbursements 10 times
as fast as the average daily rate for
the first half of the fiscal year. The
| circumstance was cited in support OF
the Presidents emergency estimates
and In the face Of skepticism, especial
ly in the liberal wing of his own ad-
ministration, that he could long main
tain this rate of expenditure without
opening up new channels of disburse-
ment, as for example to private in
dustry.
The fact that r. F c. officials them
selves were at loss to account for dis
bursements of more than $500 900,
600, at the very outside, in the remain
ing six months Of this fiscal year, was
| being mentioned by liberals who regard
the Presidents budget as a compro-
mise with conservative budget -balancers
and doubt that sound uses can be found
for so much money at once in the alb
sence Of preliminary spade work
Need for Credit Doubted.
This view of the extreme liberal wing
of the administration includes a belief
! that, since the emergency expenditures
cannot be made at the rate projected
the administration will have no need
to borrow $4,000 000,0 OF new money
| in the next six months in addition tc
| the $4,000, 100000 necessary to meet
maturities. This skepticism persists
even in the intimate presidential circle
despite Mr. Roosevelt's unequiyoca
statement in his budget:
In order to make clear to the Con.
| greSs what our borrowing problem is fol
! the next six months. permit me to re-
mind you that we shall have TO borrow
approximately $4,000 900, 900 of new
money and. in addition. $4,000. 900 ,00C
10 meet maturities of like amount"
Total Would Be Is Billion.
The Treasury proceeded as If pre-
! pairing to go to the people for the ful
| $4,000. 900 900 before June 80. In thu
event this should be necessary. th'
Federal Government would have a tota
financing operation of sl5,000.0o0 600 il
the calendar year 1884. TO say nothing
Of the $4,000 900 900 of uncalled fourtf
| Liberty loan bonds which may or ma,
not be refinanced, in whole or in part
on October IS. assuming six months
| notice by April Is.
The additional $1,000 900 900 financ
| ing foreseen before the end of this cal
endar year. assuming the President goe
through with his plan to borrow $40,
| 900, ,000. 600 by June 80, is accounted
for by the s345 100000 of Treasur,
notes due on August /, the 1892 0Ol
Of Treasury certificates due on Decem
Der Is. $4,000, ,oo0.o0o Of Treasury bill
and probably more than $500, .00'
to help offset the prospective Treasur'
deficit of $1,000, 100000 estimated b,
| the President as Of June 80 next.