Evening star., 1934-12-23
Present Debt Maximum Permits
Fire Billions for Public Works
President Could Raise Fund Without
Going Beyond Figures Set in Budget
Message Last Spring.

secrecy, but the daily Treasury state
ment shows that 81 300, ,000, 900 Of the
fund still rests in the Treasury vaults
in the form of gold. No ofncial in
formation concerning the remaining
5000 600, 900 Is available, but unofhcial
observers who have caught glimpses
of the operation of the fund from
time to time through the Federal Re-
serve Banks are Of the opinion that
1t has yielded q profit.
Inasmuch as 81 800 900 900 OF the
sterilization fund has not been called
upon, its use for current expenditures
next year has been suggested by va
rious members Of the administration
although there has been no indication
as to the official judgment Of the
Treasury on this point.
Seignorage Available.
Another reserve on which the
President could draw Is the seignor-
age on silver coined under the silver
purchase act of 1894. Seignorage on
silver bought under previous legisla-
ton is entered under miscellaneous
receipts of the Treasury. The Treas
ury has already made q "proflt" of
So, ,000, 900 on this account since July
l. However, seignorage on new" sill
ver-that is, silver bought or ma
tionalzed under the silver purchase
acts segregated. The profit from
that source already amounts to $73,-
000. 900. Estimates on the total for the
year are not available, but $50, ,000,-
900 has been suggested as q con-
servative figure.
Another factor to be considered is
the fact that current revenues are
exceeding ordinary expenditures of
the Government, yielding balance
available for such extraordinary pur-
poses as public works. Current reve-
nues are running 25 per cent ahead
OF year ago, and for the fiscal year
promise to come near the estimate of
$3,974 .665 900 made year ago, al
though industrial production has
averaged considerably below the rate
which was used as a calculation for
the latter figure. Up to December 20
of this year revenues were 81, ,794, 1855, =
986, while ordinary expenditures
were 81 1,646,52 100. If this advan-
tage on the side Of revenues were
maintained steadily for the balance
Of the fiscal year the net yield above
ordinary expenditures would be about
$500, ,000. 900. This item has already
been taken into consideration in the
estimate given above of the deficit
for the fiscal year 1885. But for the
ensuing year the margin of revenues
over ordinary expenditures would be
available for emergency use. Assum-
ing that 1t Is no more than seems
probable for the current year, an
other $500, 900, 900 would be added to
the reserve funds on which the Presi-
dent could withdraw.
Funds Are Listed.
According to this calculation, which
Is no more than the very rough type
of calculation which can be made on
the surface of the Treasury state
ments, the President would have avail
able the following extra funds for the
year l936-all of which could be spent
for emergency purposes without taking
the national debt beyond the max
imum figure which he has hitherto
named:
In expenditures previously
estimated but not made
before June 80, 1885 S2,331 O0O, 900
Unobligated proft from de-
Unused part of s;tabili1ationn 'O''OO0'OOO
fund ................ 1900. 1000. 900
Silver seignorage. 100000. 900
Excess OF revenues over or
dinary expenditures dur
ing 1880. 5UO.UOO.uUU
Total SIS. 1856. .OOO. 900
In reserve would still lie $780,
100000 in the sterilization fund, plus
whatever profit it has made.
At the present rate of outflow of
P. w. A. money which already has
been allocated about $1,000, ,000, 900
will remain unspent at the end Of the
present fiscal year. This would have
to be subtracted from the total above,
leaving $4,388, 900, 900 available for ad-
ditional public works and other emer-
geicy expenditures.
r. F. c. Shows Deficit.
This calculation does not take into
account the fact that income may
exceed outgo for the r. F. c. during
the coming year. During the current
fiscal year, repayments and collections
have exceeded payments by SIS, COS. 900.
Copyright 1934)