Evening star., 1935-01-07


the fund for 1886 has been estimated
at $155, ,00G 900. An effort will also
be made during the coming year to
establish this fund on a more definite
basis consistent with the Govern
ment's actual liability under existing
law. The expenditures for national
defense have been increased for 1885
over 1885 by $3.50 100000. This in
crease is due to the current policy of
the Congress and the Executive to
make up for the delay by the United
States in meeting the provisions of
the naval treaties of 1922 and 1890,
and to provide replacement and i'm
proved equipment for the Army. Vet
erans' pensions and other require
ments have also been increased by
about 100000, after adding to
the 1885 figure the estimated supple
mental amount previously mentioned,
which Is due to the application of new
laws and revised rules pertaining to
service connected disabilities.
Decrease in Interest Rate.
Another increase in the estimated
expenditures is $2000O0,000 from an
appropriation of $3O0,O0O, 900 which
am requesting for public works. This
appropriation is intended to take care
of the normal public works require
ments of the Government usually in
cluded in the annual supply bills,
such as Federal highways, river and
harbor improvements, and general
public works, including the construc-
tion program of the Tennessee Valley
Authority. This requested appropria-
tion may therefore be regarded as
regular instead of emergency. The
debt charges for interest and retire.
ments have increased considerably
due to the growth of the national debt,
but the decrease in the average an
nual interest rate has served to keep
these charges down.
The estimated expenditures for re-
covery and relief during 1886 are
placed at S4110,000 excluding
S472, 100000 for the Agricultural Ad-
justment Administration. 1 recon-
mend that $4,000, 100000 be appropri-
| ated by the Congress in one sum.
subject to ALLEGATION by the Executive
principally for giving work to those
unemployed on the relief rolls. An
estimate of expenditures covering this
amount is included in the budget.
The total receipts for the f1cal year
1886 are estimated at approximately
S3,992 100000. When $4,000 900 of
estimated processing taxes are de-
Quoted from this amount, there will
remain for general purposes, S3,422,-
100000.
Gain in Estimates.
The detailed estimates of revenues
and receipts for 1886, shown in
statement No. l. indicate a gain of
Sl37, 100000 in the collections from
income tax over those for 1885. This
gain Is due to anticipated improve
ment in business and to the upward
revision OF rates in the revenue act
OF 1884. The miscellaneous internal
revenue taxes for 1886 are estimated
to increase some s143 ,O0O,O over the
collections for 1895. This increase is
predicated on the assumption that the
taxes terminating on June 80 and
July 81. 1885, will be extended by
the Congress, and also that the tax
rates which would be reduced on
June 30, 1885, will be continued
OtherWlSe there will be a reduction
IN the total estimate of miscellaneous
internal revenue taxes of 1878, 900. 600
thus bringing the total estimate down
to 81 ,308 900, 900, excluding processing
taxes. Customs are estimated to yield
100000 for 1886. representing a
small increase of s11,00O,0OO over
1885. Miscellaneous revenues and
other receipts are estimated to pro-
duce S250,O0O000. a gain of about
S23,000000 over 1885.
While l do not consider 1t advisable
at this time to propose any new or
additional taxes for the fiscal year
1886, do recommend that the Con-
gress take steps by suitable legisla-
ternal revenue taxes, which under eX-
isting law will expire next June or
July, and also to maintain the
current rates of these taxes, which
will be reduced next June. I con-
slider that such taxes are necessary
to the financing of the budget for
1886.
wants S-Ocnt fOStdSe.
In this connection, may I say, too,
that the postal revenues, as estimated
in detail in the annexed budget of
the Post Office Department. are based
on the continuation of the Scent
postage rate for non-local first-class
mail. Unless this rate is continued,
the postal expenses for 1896 which
include steamship and aircraft sub
sides and free carriage of Govern
ment mail, will be increased by about
| S75,000,0 all of which will become
an added burden on the general
revenues OF the Treasury. I, there
fore, recommend the extension of the
3-cent rate.
If the estimates submitted in this
budget are approved, and if the ex-
penditures for which authorization is
asked are made in full the deficit, in
Guiding statutory debt retirements, will
amount to $4,528, 900 900 for the fiscal
year 1886. The national debt will be in
creased during this year by approxi-
mately 3,152,000,000, thus bringing
the total debt up to $34 4,239 900 900.
But this increase, as I have pointed
out, will be due solely to continued
relief of unemployment.
A number of the emergency
agencies now authorized by law will
terminate during the present fiscal
year. Most of these agencies fill i'm
portant present needs and should be
continued. As rapidly as seems prac-
tical, am bringing the ad-
ministrative expenses of these agencies
under the supervision of the director
of the budget.
Economy Legislation.
Many of the estimates of appro-
priations contained in the budget are
based upon the continuation of GER
| tain legislative provisions with refer
erice to economy which are now in
force. They are appended hereto
| and should be re-enacted if the esti-
mates are to be sustained. Among
those continued is the provision for
certain special salary reductions, the
suspension of the re-enlistment bonus
ROOSEVELT WOULD