Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-06-11
DEFICIENCY FUND
CURB ADVOCATED
Head of National c. of c.
lJrues Limit on Presiden.
tiaI Authority.
BY the Associated Press.

by Inc AooOClhbto 1853
A curb on the authority given Presi-
dent Roosevelt to shift funds In the
pending 81 ,172 900 900 deficiency bill,
on the ground that excessive emer-
gency expenditures would prevent a
balanced budget and might bring
about imitation. was urged by Henry
L Hartman, president Of the Cham
Der Of Commerce Of the United States,
in a letter to Chairman Glass of the
Senate Appropriations Committee,
made public today.
Declaring there is urgent neces-
sity" that the budget be balanced in
1895. Hartman contended that to
allow transfer of Reconstruction Cor
poration money to relief and public
works purposes might upset this pro-
gram. since expenditures then would
be made outright instead of in re-
imbursable loans.
Budget May Be Exceeded.
1.-THE deficiency appropriation bill
recently passed by the House and now
before your committee" Hartman
wrote, makes possible expenditures
much in excess of those requested in
the budget. Any excess of this kind
will operate against a balance of the
budget in 1896. even if taxes are
somewhat increased.
1T is true that the definite appro-
sal ~
for emergency purposes ($l,l72 000,-
0O0) coincide with the budget recon-
mendations. In addition to this
amount however, the bill authorizes
discretionary transfer of all unobli-
gated R. F. C. funds whether derived
from borrowing, sale of assets or re-
imbursements) to the Emergency Re-
lief Administration and to the Public
Works Administration.
The exact amount of additional
funds which might thus be dependable
for these purposes cannot be definitely
stated, but it is estimated at mini
mum of is billion and a maximum
of about three billion While new ex-
penditures authorized by the bill for
public Improvements are limited to
$500 900, 900, there is no limitation
placed on the amount which can be
used for relief.
up to the present much Of the
r. F. C. funds have been used for the
purpose of making reimbursable loans.
The Government has consequently
been accommodating assets which sooner
or later can be liquidated and the
money received turned into the
Treasury.
Five Billion Assets.
1T has been estimated that after
the debt increase of go billions in
1884 and 1885, as contemplated in
the budget message, the Government
would have about five billion of assets
which could be realized upon to dis
charge debt.
But under the bill the purposes
for which r. F. c. funds may be used
is greatly extended. These contem-
plative non-reimbursable expenditures
with no possible recompense to the
Treasury. 1t must also be recalled
that, in addition to the large increase
In the public debt, the Government
has acquired contingent liabilities to
about six billion dollars"
Continued large expenditures"
Hartman continued, carry a serious
threat of resort to disastrous imitation
as means of meeting Government
charges too heavy to be met by
taxation" He added:
I'VE urge that the Senate limit ex-
penditures by the deficiency bill or
any other appropriation measure. to
an amount that will permit the real
ization of budget balance in 1886. II
the power to transfer r. F. c. funds
for relief and public works is not re-
moved entirely from the bill, it would
appear advisable for Congress to fix
the limits of such transfers at an
amount which will permit mainte-
nance of a program for a balance of
expenditures and receipts in the fiscal
year ending with June 80, 1886"