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

gained by amendment of admins
trative sections o fthe income tax
law in which J. P Morgan and 9TH
ers have found loopholes for tax
evasion.
Deliberately utilizing only the
lowest estimates of potential reve-
nue. and generally the higher esti-
mates of potential expenditure, the
President expects the ultimate facts
to be somewhat more favorable than
the financial situation is pictured
today in his message.
His liquor income estimate at the
50 gallon rate now proposed, for
instance. was for an increase of only
$4,000 900 above income at the ex-
listing $110 rate. The message con-
tains an indirect warning to the
states to avoid loading liquor with
burdensome gallonage taxes.
Congressional leaders have told
Mr.. Roosevelt the liquor income
would be far above his estimate. He
told them, in return, that he want
ed appropriated an additional
81 l66, 100000 at this session of con-
greSs for immediate use to continue
the CWA after Feb. Is; to aid home
loan banks: and to refnance farm
loans with the old federal land bank
system.
At the White House conference
last Monday night, Mr. Roosevelt
informed Democratic congressional
leaders that he wanted from this
session an appropriation of $2,000,-
100000 of emergency funds for use
in the next fiscal year.
S6O0,OOO,OOO for Relief
He estimates $6OO,OOO,OOO for re-
lief; $500. 100000 for public works;
$500, 100000 for the RFC; $500 O00,-
600 for the civilian conservation
corps; and $1OOOOO,OOO for farm
credit and home loan aid.
The President asked the Demo-
cratic leaders for a lump sum APP
preparation. Failing that he wants
authority to shift itemized allot-
mentS from one avenue of expendi-
ture to another He feels, for in
stance, that relief needs in the next
seal year may vary between $780,
600, 900 and $8OO.OO0,OOO and does
not want to be tied to a specific
sum.
The rather mysterious $500, 600, 900
for the RFC is to be earmarked,
the United Press understands, to
general emergency needs.
This budget takes no account of
additional taxes which may be levied
at this session. If congress puts
them on-and it must be remem-
bered that an election impends-the
proceeds will be so much velvet. to
use the language of a high author
ity.
Economy Bill Unchanged
Neither is the possibility of war
debt payments reckoned in the to-
tails. But the government will con-
tinue to seek its due from Europe.
Against expenditures for this fis-
cal year is estimated revenue Of
50 259 ,936,756, considerably more
than had been expected. Revenue
for the next fiscal year is estimated
to be 1894 sos ,479.
The economy bill is to remain
unchanged, except for legislation
return of 5 per cent Of the
federal employees Is per cent pay
cut mandatory as of July l.
The overall deficit figure repre-
sents the net increase in public debt
estimated for June 30, 1884, when
the fiscal year ends. There is in
addition S498,171 500 allocated to
public debt retirement.
White House Pleased
Mr.. Roosevelt said the aggregate
Of expenditures in this fiscal year
and the next would be s16,529 Dos. 667
and that on June 30, 1885. the ma
tional debt would be swollen to the
figure of S31 $4,000.
900. He promised then 10 balance
the budget within federal income.
1t IS remarked about the White
House with considerable satisfac-
ton that comparison Of the last
Hoover budget with this first of the
Roosevelt administration shows gen.
eral expenses of the government
have been cut S684,913,167 below
general federal expenses in the last
year of Mr.. Hoover's regime. This
is exclusive of recovery expenditures.
Mr. Roosevelt is not awed nor
frightened by the need to borrow
$40 ,000, 900 900 in the next six
months. OF this sum, s6,000,000,00
will be new money and $4,000. 100000
will be to retire maturing governs
ment obligations.
The President is confident the
credit is sound and
Will remain so despite the stagger-
ing nature Of the recovery bill. =