Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-01-17

The budget will be the subject OF
a clash between those who insist
that a balanced budget must precede
recovery and those who contend that
1t is impossible at this time to at
tempt such an undertaking and that,
anyway, the subject Is not decisive.
Operating on a fiscal year that be-
gins in July the Federal government
has just about completed one-half OF
its year, with appropriations for the
last year already voted by the last
Congress. Hence, one should re-
member that in all budget discus
sions, we are dealing with the fiscal
year that begins next July and ends
In the middle of 1886.
Another big item of the emergency
budget Is the $4,000, 900 900 a year
being spent annually for direct relief
through the Federal Emergency Re
lief Administration, the Civilian Con-
~servation Corps and, to a lesser de-
| gree, the Department OF Agriculture.
The Civil Works program, once so
active. is now very quiet. Much OF
| this huge sum becomes necessary
| because % States r contributing
less than / per cent OF the relief to-
| tai although Congress In adopting
the relief measure. stipulated that
States and local units must do
their share"
Now we come to another big issue:
the raising of the money for the two
sets of expenses, which, as outlined,
aggregate about six and a half bill
lion dollars. This, be 1t noted, takes
into consideration no extra money
for the payment OF the bonus, an en-
larged construction program, or for
rushing completion of a treaty navy
II these things are added then add
tionl funds will be needed. At pres
emit, the probably income OF the gov
eminent for the next fiscal year IL
indicated at around four and a hall
billion. leaving a debit side Of about
two billions to increase the nationa
debt, 10Y above all previous records
These figures are based on thing!
as they are and may be increased Of
decreased as business moves up o.
down. However, it seems safe to as
sumo that there will be a deficit IL
the next fiscal year and that the siz,
Of the shortage will depend upon ex
penditures authorized in eNces o
those now being made. New tai
alton Is not expected to provide tn
difference and as special taxes nov
yielding about o%ne-eighth of the gov
ernment's revenue expire In the mex
six months they must be replaced o
the deficit will be larger.
The bonus issue Is certain to see
spirited fight unless some unltgel
g compromise develops. The soldier
( are insisting upon immediate pay
. ment OF the adjusted service certif
Gates, issued In 1924. payable 1
! twenty years from that date an
/ bearing four per cent interest. Tn
President and others are agains
this saying payment Is not due unit
1S45, that soldiers In need receive q.
sistance and that payment toda
!. would disrupt government financ,
Advocates argue that such a larg
, outlay would stimulate retail sale
and benefit business and advanc
the idea that the soldiers have
somewhat privileged status, entitln
them to cash now rather than
I wait until the certificates mature a.
] cording to the terms OF the origins
act. Another phase OF the argumer
is the belief. on the part of man
people, that nee the bonus is pal
9 the Veterans organizations will col
tinue to demand new preference
9 from the government and that the
I supposed power will enable them
! secure what they seek.