Evening star., 1935-05-06
PLAN MAY FORCE
BALANCED BUDGET.
Tydings Proposal to Make
Provision of Revenue
Precede All Bills.
BY G. GOULD LINCOLN.

A budget-balancing proposal which
would make impossible excessive Fed
raj Government expenditures over
'eceipts, unless accompanied by new
AK legislation, will be offered in the
Senate by Senator Millard z. Tydings
If Maryland, Democrat.
The plan in itself Is simple and
Easily understandable. 1t would put
IN effective brake on both Congress
appropriations. The
Maryland Senator Is one Of those who
mas taken to task the Roosevelt ad-
and the Congress for
going ahead with vast Government
which he insists will
bring ruin to the American
people unless checked.
A joint resolution which Tydings
will introduce at the earliest oppor-
tunity requires an automatic bal
ancing" Of the budget. 1t amends the
budget and accounting act of 1921.
which demands that the President
transmit to Congress on the first day
Of each regular session the budget.
30 that the President must transmit
also to the Congress at the same time
q budget bill. This bill will allocate
to each Government department and
other agency, including the Municipal
Of the District of Colum-
bia, such sums of money as are needed
for the Government for the ensuing
year.
Budget Given First Rank.
It Is further provided that no other
legislation shall be passed by Congress
until after the budget bill shall have
been passed
In explanation Of his resolution.
Senator Tydings made the following
statement:
The resolution provides that at the
beginning Of each session Of Congress
the President shall transmit to il an
itemized account Of the estimated rev.
enues to be received during the COM
ing year Accompanying this revenue
list shall be one budget In which the
estimated revenues are allocated in
detail to the various departments and
branches of the Government. II Con-
gress decides to increase the amount
allocated to any department it must
take the amount of said increase from
some other department or depart
ment. No other legislation can pass
both houses until the budget has been
adopted by the Congress.
In the event that Congress wishes
to make appropriations in excess of
the estimated revenues the resolution
requires that new taxes must first be
provided to raise money for said ex-
cess appropriation.
15-Year Liquidation Limit.
"In the event that Congress wishes
10 make excess appropriation and
wishes to borrow the money Tor such
appropriation, then the resolution re-
quires that In the act appropriating
said money the Congress shall lay
the taxes necessary to hquidate the
loan in q period not to exceed IS
years.
In times Of war and for one year
after its close the provisions of the
resolution do not apply.
If the resolution passes the Con-
gress and is signed by the President
the Federal budget will automatically
be kept in balance at all times. The
resolution closes up the holes In the
budget law under which Congress
now functions and which permits the
Congress to appropriate large sums
of money without providing where
the money is to come from"
If the Tydings plan should be
adopted. 1t would compel Congress
to pass laws to raise additional rev.
enue If the Government appropria-
tionS are made in excess of estimated
revenues. Senator Tydings believes
that this would be a salutary thing
both because 1t would bring reduced
appropriations and because it would
prevent the piling up of huge deficits
1t would bring reduced appropriat tions
in all probability because while
spending public money Is popular
taxes are not.
Present Program Cited.
President Roosevelt sent to Con-
gress when 1t met last January q
budget message which set forth rec
commended expenditures during the
fiscal year 1886 at q total of $3.50
4l3,609. The President estimated the
revenues for the fiscal year at q total
of 1891 ,9O4 ,639. The estimated
deficit for the year. therefore, was
$4.52S. .50s,970. Included in the budget
was the $4,000 .0O0. 600 appropriation
recommended for work relief" Con-
gress already has made that appro-
priation in the $4,880, 900 ,000, 900 re-
lief bill, now q law. But no effort has
been made to levy increased taxes
The President, in his budget message
said that he proposed to borrow
"a, ,0O0. .000, 900 to take care of the sit
uation.
Under the Tydings plan Congress
would have tied tax legislation to the
Presidents relief bill. If the bill au-
thorized the borrowing of the money
then the taxes would be such as t.
retire the Government obligation.
within Is years.
The President in his budget mes.
sage Of last January said that the plar
to raise $4,000, 1000. 900 for work relic
and to run the deficit up to such higf
figures was within the credit structur,
OF the Government. He also insisted
that m nAo tinvS xs,e,,td L. ~>.~.-..