Evening star., 1935-01-07
ASKS -FOUR BILLION
FOR us. lob RELIEF
Years Deficit to Be S4,.
0OO,0OO,O00, President
Reveals.
Continued From First Page.)

l, 1895. I see no reason, however,
for the restoration of this reduction
prior to that date. The index figure
for the cost of living, on the basis
of which salary restorations are pro-
vided by section 5, title II, of the
economy act of 1888, now indicates
that such restorationS in all proba-
bility would not even be justified on
next July l, or for some time there
after"
This language was interpreted as
meaning that if the Congress under
takes to make this pay restore ton as
of January l of this year a presiden-
tial veto will follow.
The budget submitted to Congress
today makes no provision for the
proposed system of social security in
surance, including old-age pensions
and unemployment insurance. ESti-
mates for necessary expenditures by
the Federal Government to partici-
pate in such insurance will be sub
mitted later Nor is it expected that
the outlay needed will be very large.
3-Cent Mail Rate Kept.
In discussing the budget for the
Post Office Department, the Presi-
dent said it was based on the con-
tinuation of the Scent postal rate
for non-local first-class mail. I'm
less this rate is maintained, the postal
expenses will be increased by about
S75 900 900. The President recon-
mended the extension.
It is clear from the budget figures
that the estimate deficit for 1896 will
be less than the estimated deficit for
the fiscal year 1895 by S341 ,109, 1858.
The President, in his message, made
no prediction regarding an ultimate
balancing of the budget. The hope
exists, however, that with increasing
recovery of business the deficit may
be reduced and finally wiped out.
The President wrote.
In the budget message of last year
I said, speaking of the fiscal year
1886, that We should plan to have
a definitely balanced budget for the
third year of the recovery and that
from that time on to seek a con-
tinued reduction of the national
debt.
Unemployment Still Large.
recovery achieved since that state
ment was made, unemployment is still
large. The States and local units now
provide smaller proportionate share
of relief than "a year ago, and the
Federal Government IS, therefore,
called upon to continue to aid in this
necessary work.
For this reason it is evident that
we have not yet reached a point
at which a complete balancing of the
budget can be obtained"
The President added, however, that
he is submitting to Congress a bud
get for the fiscal year 1886 (which
balances except for expenditures to
give work to the unemployed" Such
deficit as occurs, therefore, will be
expected to decline as rapidly as pri-
vate industry is able to employ those
who are now without work.
Substantial offsets against the pub
lie debt are expected in the shape of
repaid loans. In this connection the
President said, reviewing the fiscal
year 1884, that part of the expendi-
ture of $4,283 900 900 for recovery and
relief is repayable. The attitude of
the administration as revealed at the
White House with respect to loans
made by the Government s that they
must be repaid. No minority group,
it was explained, may expect to have
its debt cancel d. This, it is under
stood, includes the veterans.
$9O0,0O0,0O0 For Direct Aid.
It is estimated that approximately
$900000,000 will be needed for direct
relief until the administrators new
work relief" program can be put into
effect. The President asks that this
sum, from unobligated portions of re-
covery and relief appropriations be
transferred to emergency relief needs
during the remaining months of the
current fiscal year. He asked that
this be done without delay.
The President showed in his mes
sage that recovery and relief appro-
priations and authorizations from
February 1, 1882 to November 80,
1934-nearly three years-reached a
grand total of $14,412, 100000 OF this
total there remained unexpended
on November 80, S6,247 100000. A
large part of this remainder has al
ready been obligated.
The budget estimates for national
defense during the coming fiscal year
are 1892, ,484,255 This is an increase
of approximately $180,000,000 over
the current fiscal year and of more
than $300,O00,000 over the fiscal year
1884. This very considerable increase
is due largely to the determination of
GnuorY1nNnnf RI hi1i1 6o Mo-
up to treaty strength. The eXpendi-
lures for the civil departments and
agencies of the Government are esti-
mated at $788 8,057, ,169. an increase of
approximately $l20,O00,O00 over the
expenditures for the present fiscal
year. This, it is explained by the
President, is largely due to the fact
that certain public works and other
recovery expenditures have been
transferred from recovery items to the
estimates for permanent establish
ments. For example, the estimates
for the Tennessee Valley Authority,
amounting to about S50,000,00O a
year, have been so transferred, and
also items for Fthe rivers and har-
bors, running around $6O,OO0,o00.
Reviews Economic Situation.
The President reviewed briefly the
economic situation Of the country
because of its profound influence on
the Federal budget" He told Con-
gress that business was substantially
more active, that the average of in
dustrial employment had expanded,
and that the total number Of un-
employed at the end of the fiscal
year 1884, although still very large,
had decreased by about 100000, as
compared with June, 1888, and 4,000,-
600 as compared with the worst point