The Waterbury Democrat., 1935-09-30
Roos ,e,DeIt ShaOes. Billion OFF Budget
Business Improvement, Tax Increase Warrant Cut Ile
 Maintains Deficit Decrease Is Anticipated

904,es9. Because of increased tax rates and higher tax revenues, this estimate was raised to $4,47O,349, 14O, giving the government $478,- 444,5O1 additional estimated rev enue. { -
 Through these revislons, 1t is now estimated that the government for the current fiscal year will be ''if the red" only to the' extent of e81,982,s ,se0 instead of $4,- 52S, ,508,970,i a reduction of $1,246,- 526,110 in the prospective deficit.
 The president held out hope for further progress toward bai- anced budget in the 1897 fiscal year beginning next July 1, but failed to set definite time when government income would balance its outgo.
 He indicated that should coll lection of processing taxes be de- clared unconstitutional, new rev. enue sources would have to be found to take the place of these levies which are now bringing in half a billion dollars annually.
 "The underlying tax structure of the government" he said, Ifs now stronger than ever before in our history, and as normal business re- turns, will produce revenues ade- quate> for all essential purposes. "The prevailing rate of recovery points to the speedy decline of fed- eral expenditures for emergency activities. The 1897 budget is now being prepared with view to sharply decreasing the spread be- tween income and outgo.
 Tt will be understood that esti- mates of receipts contemplate con- tinued collection of processing tax es. If the attack which has been made upon this act is sustained we will have to face the problem of financing existing contracts for benefit payments out of some form of new taxes"
 Recovery and relief expenditures furnished the largest saving in the revised budget, the estimate for these purposes being slashed by $427,187,475 from $4,5S2,011,475 to $4,154,824,000. Interest on the pub- lie debt and debt retirements were to take $215,434,000 less because of lower interest rates and smaller than expectd borrowings.
 Interest will take $745,000, 900. instead of $875,000,000 and public debt retirements $551,00O, 900, in- stead of $636,434,000. Another large savings was in national de- fense costs, presumably because of the lag in construction activities. National defense will take $700,- 900, 900, instead of $792,4S4,265. Costs of civil departments were cut $S1,474,169 to $70s,5s3,oo0.
 On the revenue side of the budget, the president estimated that alcoholic beverage taxes will bring in $494,840,000, or $64,840,- 900 more than had been estimated in the original budget. Gift taxes are to bring in $60,00O,000, instead of $25,O00,00O.
 Reviving foreign trade resulted in a boost in the customs collec- tions estimate to $353,000,000 from $29S, 100000, while tobacco levies are to bring in $478,370,000, in- stead of $430,00O,000. The yield  from manufacturers excise taxes was boosted to $364,790,000 from $338, 000,000.
 Despite the slash in expenditures estimates, the government this year likely will set another peace time record of expenditures of $7,375,825,166 made in the fiscal year ended June 90, 1895.
 The budget revision figured that the governments debt on June. 30, 1936, as the result of borrowings to meet the deficit, would reach an alI-time record of $30,723,619,- BAG. Before the success of deficits in 1890 the public debt was only $16,000, 900 900.
 President Roosevelt reiterated that the continued deficit was caused entirely by recovery and relief costs. He again indicated that as soon as these are reduced, it will be possible to balance the budget.