The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1935-11-07
BUDGET BASIS FOR 1886
LAID BY THE PRESIDENT
Preliminary Steps Are Taken In
What Will Be Vital Move;
Much Depends On It

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President, the Secretary of the
Treasury, and the acting director
Of the budget met at LAS today,
sharpened their pencils, and forth
with went to work on the most i'm
portant domestic problem facing
America-preparing the 1936-elec-
ton year-budget.
AS to emphasize the momentous
character of the task, Henry E.
Morgenthau Jr., Secretary of the
Treasury, held not one, but three
separate appointments on the Pres
ident's work-day. He had lunch
with Mr.. Roosevelt from / to las;
he joined with Daniel w. Bell, act
ing budget director, in the discus
sions which mark the first prelimi-
nary act in drawing up the budget
from las to 2:30; and then at 2:30
he engaged in yet another round
table talk at the Presidents desk
with another group of new-deal Of
fetal, seking to iron out a matter
also affecting Americas pocket
book.
President To Present Views
Preceding the budget conference
Stephen Early, the Presidents Sec
rotary, told the press that the Pres
ident intended to lay down his fun
damental views on the 1886 budget
to his fiscal advisers at the prelimi-
nary conference today.
From now on, rightup to the &C.
tual budget message which comes
with the opening of the next ses-
sion of Congress in January, the
work of preparing the budget will
go on. For various reasons the pres
ent financial decision of Mr.. Roose-
welt will be of the first Importance
to the nation.
Politically, the new budget will
be of tremendous interest in the
presidential election. It will not,
however, be the last statement of
Administration finances before No
vember, 1886, for Mr.. Roosevelt has
instituted the practice of issuing a
supplementary budget shortly after
Congress adjourns.
January Budget Plan Vital
Presumably, this will be done
again some time next summer, just
as the supplementary budget for
this year was issued Sept. 30.
More vital than that, the Presi-
dents decisions as worked out with
his advisers, will have a profound
effect on the course of American
monetary and credit developments
IN the critical months ahead. Amer
lea has been piling up deficits, be-
gining with the last two years of
the Hoover Administration, on
through every year 60 far of the
Roosevelt Administration. At the
present time, the United States is
spending twice as much money as
it is receiving.
Must Cut Expenses
Every one has agreed, from New
Deal officials down, that such con-
dition could not be kept up. Mr..
Roosevelt's announced aim has
been to end the situation as the
emergency subsidized.
In this Sept. 80 budget message,
Mr.. Roosevelt said no new taxes
would be necessary in 1896, if bust
ness recovery continued, and if
Congress did not vote new expen-
ditures. Another development that
might cause new taxes, he said, was
a Supreme Court overthrow of the
processing taxes.
Mr.. Roosevelt forecast total re-
ceipts for the present fiscal year
ending June 80, 1896, of $4,470, 349,-
40; total expenditures of $751;
$4,000; with consequent deficit of
1921 1882, 800. Such a deficit would
be about $3OO,OOO,OOO less than last
years.
More Bonus Agitation
It is pointed out here, however,
that Congress is more than likely
to pass, the soldiers bonus at the
next session; the chances of the
Supreme Courts upholding the
processing. taxes are more than
dubious.
Even with business revival, un-
der such added financial handicaps,
the President will find it necessary
to- increase taxation if the goal of
liz ,.e<l..o4;oxa i. Tho; do&o;t ;c 70