Evening star., 1934-01-04

will be much in excess of $50,0OO,OOO.
Must Borrow Huge Sums.
The Governments borrowing problem
for the next six months, the President
told Congress, calls for approximately
100000 000 $4,000 100000 OF new
money and $4,000. 900 900 to meet ma
turtles of a like amount. The Presi-
dent is confident, and so expressed
himself, in commenting upon the
budget message, that the Government
will have no difficulty in borrowing
these huge sums. His belief is predl-
Gated on the declaration that during
the fiscal year 1886, under its present
plan, the Government should be able
10 balance its budget and thereafter
bring about a continuing reduction OF
the national debt.
The budget estimates for 1895. ex-
elusive of the Agricultural Adjustment
Administration benefit payments and
refunds Of processing taXes-Whlch are
expected to offset each other-but IN
cluding all other appropriations for
regular departments and independent
establishments, plus the interest on the
public debt and debt retirement are
S2,980, ,293 1880. These estimates Tor
the so-called regular establishments OF
the Government are less by 1884, 1913
167 than the budget estimates sub
mitted for the fiscal year 1884. This
reduction, the President holds, is the
measure of savings in the cost of run
ming the regular departments OF the
Government made by the present
administration.
The President did not mlnce words IN
his budget message. nor did he Wlthnolo
any information regarding expenditures
and receipts. Indeed. he leaned over
backwards in order not to give too
bright a picture of the financial sltu-
alton Of the Government. He flrst out
lined the expenditures made by the
Government during the current nscal
wear ending June 80 next, ana ne LOOK
this step so that Congress might nave
a clear understanding OF the nnanclal
situation. He showed a total govern
mental expenditure in the year amount
ing to s9.403, ,006 967, divided as 1ol-
lows: General expenditures, S3,O4o.-
52O267. and emergency expenditures
s6.357,4S6, 700. These expenditures are
exclusive of debt retirement amounting
to S48S,171 500.
Sets Receipts at s3,259,93s,156.
"As against these expenditures, said
the President. which have either
been appropriated for or for Whlch
eppropriations are asked. the eStlmat-
ed receipts fer this fiscal year are
S3259 ,938,756.
ION this basis, including, however
certain additional expenditures for 1884
which are not included in the ouoget
estimates but which are believed to De
necessary. and amounting to Sl,loo'-
100000. the excess Of expenditures over
receipts will be s7,309,068, I'll. In
terest charges on the borrowings IN
excess of budget estimates will slightly
increase this figure.
"On the basis of these estimates, tne
public debt. in the strict sense OF the
term at the expiration Of this f1scal
wear will therefore amount to ap-
nroXimately s2o847, 900, or an in
crease as shown above of S73O9,O ,O68,-
oil" Dealing with the fiscal year
1885, the President estimated eXpenol-
lures. exclusive of debt retirement OF
S525, 1863 500, and exclusive also OF sucn
sum as may be necessary for new ana
extraordinary recovery purposes for the
new fiscal year at s3960, 798,70O.
The general expenditures were gwen
as follows: Departmental. S3,2O2,O74,-
900: legislative. Sl8,734500, and in
dependent establishments, s542 466 ,6oU
total, general expenditures. S3.763.-
276,OOO, which, less S525, ,763,800 public
debt retirement, makes the total OF
general expenditures s3,237,512 200.
Emergency Sum s723,2s6,5Oo.
The emergency expenditures were
estimated at S723. .286. .5oo-including
expenditures for the Public Works Ad-
ministration. the Agricultural ADJUST
ment Administration. the emergency
conservation work, the Reconstruction
Finance Corporation, Tennessee valley
Authority and the Federal Land Banks
The s2000.O00.O00 which the Presl-
dent plans to ask of Congress for con-
tinuing relief and recovery work dur
ing the fiscal year 1885 are not in
cluded in these estimates, however.
The President has frankly told the
confessional leaders he hopes they
will make this appropriation lump
sum appropriation. allowing him to dis
tribute it as it is necessary 20 the
various Government agencies. If Con-
rress insists on itenlizing the appro-
priation. he will ask that he be per-
mitted to shift funds from one agency
to another. If it becomes necessary.
A rough estimate of the uses to
which this s2,oo0.00o, 900 are to be
put includes s550,00O.000 for relief dur
ing the Winter 1934-35; s500,0o0,oo0
for the Public Works Administration;
s50o.00000O for the Reconstruction
Finance Corporation for making loans
where they may be necessary. and
800 600 900 for the Farm Credit and
Home Loan Administrations.
s40O, ,O00. 900 for Civil Works.
OF the 1856 100000 which the Pres
ident asked of Congress to be ex-
pended in recovery and relief work
during the remainder Of the present
fiscal year. ending June 30 next the
largest single item is about S400 0000.-
600 for continuation of the civil work.
program-for continued employment OF
some 100000 workers until about
April IS This the President deems es-
sential.
money during the present fiscal year
If 1t is made. will swell the tctal eX'
penditure for the year to approximately
S1O5oo.oO0. 900
While the President has not included
IN the estimates of governmental re-
ceipts payments by foreign government!
of debts owed this country. he explained
in discussing this feature of his bulge
message that this Government was b,
no means abandoning these debts ant
that 1t expected them to be paid.
The failure of the President to esti
mate much larger sums for the publi
works program will come as a shocl
to some Of the members of Congress
who are demanding that the program
be extended until it becomes a $4,000,
100000 or even a $4,000 000000 pro
gram.
Fixes Control of Expenditures.
The President announced to Congress
that hereafter control Of the emergenc
expenditures, the expenditures made b
the N R A the A. A. A, the P. w. A
and all the rest of these new agencie
would be exercised by the authorize
who have control over the general ex
penditures of the Government, tn
bureau of the Budget and the Con
troller General. for example. Here
after Gen. Hugh S. Johnson, nations
recovery administrator. will have I