Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-10-01
King

originally estimated, the Utah Senator
said he hopes this result will come
about, but even If it does we will still
have a deficit Of $3.50, 900, 00o."
The Presidents budgetary an
nouncement that the prevailing rate
of recovery points to the steady de-
cline Of Federal expenditures for emer-
gency activities" and that the new
budget was being prepared with
view to sharply decreasing the spread
between income and outgo" also
brought comment from Senator Dona-
hey, Democrat, of Ohio.
II approve OF the idea Of keeping
expenditures within the revenues as
far as it is possible to do" he said.
The Presidents statement will be
Of interest to everybody"
1.-THE Government ought to meet the
emergency needs and get back to COM
mon sense just as quickly as it can
Senator Davis. Republican, Of Penn
sylvania, said: The President is still
long way from balancing the budget
actually and positively"
Our only hope for a return Of pros
pcrity," he said, lis through literal
balancing Of the budget. by means
Of rigid administrative expense cur
tailment, minimum of legislation in
a short and Snappy second session of
the Seventy-fourth Congress, and no
further harassment of business"
Curran Answers Business.
The portion of the Presidents
statement declaring the country's tax
structure stronger than ever before"
drew the fire of Henry H. Curran,
president Of the National Economy
League.
THE fact is that the underlying
tax structure OF the Government is
weaker than it ever was before in our
history" he said. In this very year,
by the Presidents own statement, the
tax structure Is over $4,000, 000, 900
weaker than the amount of money
necessary to pay the expenses Of the
Government. The test Of any tax
structure is its ability to pay bills"
Under the Presidents revised fig
ures, the Job of borrowing $4,000, 000,-
600 in the next nine months was
given the Treasury, and while they as
serted they expected no difficulty in
finding lenders, officials were graft
fed, nevertheless, that the increasing
revenues and decreasing expenditures
NY,t1 10 10 t4I - L.
some $685., 900 900 less than had been
estimated in the original budget Of
last January.
Borrowing Program Heavy.
Studying the new estimates pre-
sented by the Chief Executive. fiscal
observers noted that while the jan
uary budget called for total borrow
ings of s3,788,623,782 in new money
to meet running expenses, the new
summary set the figure at s3,l23,-
726, 722.
Since the fiscal year began on July
/. the Treasury already has borrowed
$1.726, 000,0 C0, leaving sl,39S,00 900
still to be raised. But in addition,
3,766 10000 must be borrowed to re-
tire Government securities which ma
ture before the end of the fiscal year.
It was noted, too. that while in
January, the President proposed that
$739, 900, 900 of the Treasury's cash on
hand be used to pay this years ex-
penses in addition to the sum then
proposed to be borrowed, the new
estimates cut the depletion of the
cash balance to $l58.000,000.
The revised figures, published yes
terday, estimated the years deficit at
$3.28l ,00G, 900 or some 81 ,237,000,0 900
less than the January estimates. Rev.
enues were computed at S479,000,000
greater and expenditures at $685.
100000 less.
Figures Are Reduced.
Analysing the Presidents figures
and reducing lump-sum spending esti-
mates to daily averages, observers
were struck by the fact that the
figures cited would require reduction
of nearly a million dollars a day in
the ordinary" expenditures Of the
Government for the remainder Of the
fiscal year. They would require, too,
q Jump of more than 100000 daily
in emergency" OUTLAWS.
Thus far in the fiscal year, spend
ing for ordinary purposes has to-
tailed $685. 900, 900. a daily rate Of
SIC, 100000 The new estimates fore
cast a years total Of $3,5s7, 900 900,
leaving 81, 662, 0oo, 900 still to be spent.
or a daily average of s9,610,000.
Recovery and relief expenditures
have totaled sS7oOoO,oo so far, or a
average of $9,775,000. The revised
budget calls for an outlay of s4,155.-
100000, or s3.2S5, 100000 still to be