The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-05
THREE-RINCED
BUDGET FIGHT
IN PROSPECT
Groups Split on Amounts
Roosevelt Seeks for
Relief.
BY NED BROOKS
Times STAFF Writer

WASHINGTON. Jan. 5.-Presi-
dent Roosevelt's first annual budget
message left in its wake today
three cornered battle which APP
peared likely to occupy the atten-
ton of congress almost continually
until adjournment.
The Presidents suggestion for
two billion dollar expenditure dur
ing the fiscal year 1885 for emer-
gency recovery agencies was met
with an immediate movement on
the part of congress progreSSiveS for
larger sum, principally for public
works.
Opposed to this group were Demo-
cratic leaders resolved to carry for
ward Mr.. Roosevelts program in the
form submitted. and Republican
conservatives who demand an i'm
mediate curtailment of all eXtraor-
diary expenditures.
La Toilette Disappointed
Senator Robert La Toilette rep,
Wis.,. who has advocated ten
billion dollar public works program,
expressed keen disappointment in
the Presidents proposal to add only
$500 900 900 to the sum already be-
ing spent for public works. The
amount is entirely inadequate to
bring about recovery" he said.
Progressives generally believed the
President might be willing to IN
crease the figure later and had pur-
posely fixed the proposed expendi-
lures at a sum which would allow
trading margin" A compromise
with those advocating greater
emergency expenditures was re-
garded as a possibility.
The progressive group argued
that the President might COM
promise after receiving assurances
that the ten billion dollar financing
program, which must be carried on
in the next few months to pay the
recovery bill to date and to meet
bord maturities, can be &C
complished without difficulty.
Fight in Committee
Although there was no indica-
ton of break in the recovery pro-
gram truce agreed TO by Repub-
lican leaders, some members Of the
minority we're outspOken in their
criticism of this years $1,000 ,068,211
deficit, and the two billions which
the President proposes to add to
the national debt next year.
Meanwhile, a fight was brewing in
the house appropriations committee
over the granting of unlimited au-
thority to the President to allocate
funds appropriated for emergency
activities.
Chairman Buchanan Dem, TeX0
is insisting that future appropria-
tons for emergency agencies bear
definite earmarks to prevent them
from being allocated to depart
ments and bureaus without congress
sional authority. In this he has
the support Of Majority Leader Jo-
seph W. Byrns Dem, Tenn, for
mer chairman of the committee.
Wants Funds Earmarked
Mr. Buchanan's proposed limita-
tons are directed against the pub
lie works administration, which has
allocated large sums for govern
ment activities diSalloWed by CONF
gress in regular appropriation bills.
Representative Buchanan is de-
handing provisions in all regular
supply bills that rejected items may
not be financed in any other way.
In private conferences with con-
gressional leaders President Roose-
welt asked that the two billion re-
covery fund for 1885 be given him
either in a lump sum or divided
among various agencies, in which
latter case he asked authority to
transfer funds from one agency TO
another. With limitations as to
amounts, such authority was given
him when the first emergency APP
preparations were made.
On the outcome of this contro-
versy depends the fate of many Of
the emergency agencies established
by the President and the extent to
which he can mobilize them for
quick action in future emergencies.
Congress, on the other hand, is
extremely jealous of the power it
has exercised over the executive
branch of government by appropri-
ating or Withholding funds.
Deficit I Billions
The two billion recovery bill which
the President proposes to incur dur
ing 1885 allows $500, 100000 for re-
lief, $500 100000 for public works,
S500000,00 for further expansion
of Reconstruction Finance Corpora
ton credit activities, S30000O,000 to
continue the civilian conservation
corps, and s1OO,OOO,OOO for the farm
credit administration and the home
loan banks.
This years prospective deficit OF
S7,309, 068, 211 is created by expendi-
lures of S9,4O3 ,OO6,967 for all pur-
poses. including S1.166 900 900 which
the President proposes to spend for
recovery during the next six months.
Of this s400,0OO,OO is for continuing
the CWA until April Is