Evening star., 1935-09-30

CoutIUl III Tic 1OVcIuIuent, pro-
pose this year to inaugurate the
policy of having a summation of
the budget prepared for publica-
ton Immediately after the Con-
gress has acted on all financial
matters. This summation will pe
ready on or before July !. unless
the Congress is still in session. It
will be presented along the lines OF
the general budget summary and
supporting schedules, including
statements Nos. l and 2, as shown
In the budget. It will exhibit the
revenue estimates, So revised by
the Treasury as to reflect any
changes in the economic situation
during the preceding six or seven
months and also any revisions
made by the Congress in the tax
laws. 1t will provide a complete
summary of all appropriations
and expenditure authorizations
made by the Congress and related
estimates Of expenditures. Lastly,
it will indicate the need for ex-
ecutive or administrative measures
in controlling the execution of the
budget during the fiscal year
1886"
Economic Conditions and
Changes Are Reviewed Briefly.
Since so great a part of the
Federal program is Influenced by
economic conditions, it is sppro-
pirate to review briefly the changes
which have taken place during the
past fiscal year.
At the opening Of the year in
July. 1884, and despite noticeable
improvement during the preceding
IL months, business was in slight
decline because of accumulation Of
inventories, and because Of the
drought which affected seriously a
vast area of agricultural land.
There was lag in the activities Of
heavy industries. Some pickup
was apparent in the Fall and sub
sequently output expanded to q
level higher than that of the pre-.
ceding Winter. During the Spring
Of 1885 normal rainfall assured
favorable crop conditions, and ex.
penditures for durable goods and
equipment showed a steady in.
crease. Automobiles, electrical ap-
pliances and household furniture
were sold in much larger quanti-
ties and demand for farm and in
dustrial machinery increased con.
siderably. Automobile output dur
ing the first six months of 1885
almost equaled that Of the like
period in 1929. Expansion also
occurred in the construction of
buildings other than public works,
following three years of relative
inactivity.
The burden of private debt and
OF interest payments was light
ened during the year both by a
further decline in the volume of
Indebtedness and by a general re-
duction in rates of interest. Mort
cages on farm and urban houses
were being refunded at lower rates.
partly by Government agencies or
as result Of Government policy.
There was a gradual improvement
IN real property values and some
revival in demand for mortgages
by private investors. In the Cant
tai market a large volume Of Sc.
curity offerings for refunding pur-
poses was sold during the Spring
and Summer.
Cites Pay Roll Increase
AND Dividends by Corporations.
industrial pay rolls were nearly
D per cent larger than In the pre-
ceding fiscal year, and dividends
paid by representative corporations
increased. Prices for AGRICULTURAL
products were higher, and farm
income for the country as a whole.
including rental and benefit paw
ments, increased nearly 20 per
cent. The increases noted are to
be compared with an increase of
about 4 per cent in the cost of
living.
On the whole, economic condi-
tions were decidedly better for the
nscal year just closed than in the
preceding year, and of course
vastly better than in 1893 and still
better than in 1882. We have wit
messed larger distribution of goods
70 consumers and a reduction In
plant inventories; a closer rela-
tionshp between industrial and
agricultural prices; further reduce
ton OF the burden of private In
oeotedneSS; an increase in na.
tional income. At this date in
ventories are low. Industry has
shown its strength against the
current of seasonal slackness, and
output and trade are expanding.
Capital market conditions are IA
vorable. Crops are expected to be
larger this season and to WELD
farmers more income than In the
past year.
Fiscal Year Expenditures
Cited as S7,375,825,166.
Total expenditures of the Gov
ernment for the fiscal year ended
June 80, 1885, as shown in the
attached summary table, amounted
to s7,375.S25,166. against an esti-
mated expenditure shown in the
budget Of last January of $s,5s1,-
o69,o26. Actual spending during
the year was less than the esti-
mate, therefore, by $1,2o4, "a, $50.
OF this difference between esti-
mated and actual expenditures,
nearly a billion dollars was for
account of recovery and relief. and
some two hundred millions for ac-
count OF regular Government
agencies. For recovery and relief
there was expended s4,262, ,257,2
against an estimate OF $5,25e ,802.-
852. 1t may be pointed out here
that when the budget was made up