Evening star., 1935-09-05
|DEF|C|T HELD LESS
THAN bUDGETPLAN
SET BY ROOSEVELT.
Morgenthau Deducts p. W
A. Income in Figure or
| Fiscal Year Outlay.
PRESIDENTIAL ORDERS
| ON AGENCIES WATCHI.
Budget Bureau Policy Is He
Possible Move to Curb OPP
| position Attacks.
BY the Associated Press.

By the Associated Press.
Secretary Morgenthau today looked
over Treasury figures for the first two
months of the present fiscal year and
concluded I'VE are within the Presi-
dents budget"
Calling particular attention to
money lent by Government agencies.
the Secretary, talking at his regular
press conference, pointed out there
we're what he termed recoverable
loans that should be taken into ac-
count in the $672 .O0o, 900 deficit shown
for July and August.
That is, he explained, the Commod-
ity Credit Corp. lent S188 ,000. 900 more
this year than last in the same period,
and the Reconstruction Finance Corp
the same amount more. But the Pub
lie Works Administration received
back, he said, s131 900 900 more than
1t lent to States and municipalities and
railroads.
Subtracting this $13l, ,o00, 900 from
the $4,000, 900 total excess lent by
the Commodity Credit Corp. and R.
F. c.. the Secretary arrived at the
SEAS 100000 net recoverable loan fig
ure he subtracted from the initial two
month deficit.
Puts Deficit at s427, 200, 900.
That gave him a net deficit for the
two months OF 27,000,o00. The
President had estimated a $4,000 000-
600 deficit for the entire year. Nor
genthau's s427 600, 900 for the first
two months, if sustained at that rate
for the rest of the year, would
bring the total deficit to around
81 500 ,000, 900.
The more you go into 1t for the
first two months, the better it looks"
Morgenthau said.
Meanwhile, the orders President
Roosevelt issued yesterday placing all
emergency agencies under the Budget
Bureau aroused speculation as to
whether this might not be a move
toward meeting opposition attacks on
New Deal spending.
First STRINGS Of the approaching
election campaign have indicated that
heavy governmental expenditures and
an unbalanced budget would figure
prominently as an issue. Republican
spokesmen apparently intend to keep
it live subject.
In his talk with newspaper men at
Hyde Park, N. Y, however, Mr.. Roose-
welt said the national emergency had
passed and that his orders contem-
plated a reduction in employe per-
sonnel and eventual consolidation
where possible.
Powers May Be Released.
Observers here wondered whether
this meant that when Congress meets
in January the President would re-
linquish any of the emergency powers
voted him to deal with the domestic
crisis. Critics have seized upon these
added powers also as an issue, calling
them "dictatorial."
Even before he left for Hyde Park
the President gave hints of moves to
trim down Government agencies. He
arranged with heads of bureaus deal
ing with housing activities to prevent
an Overlapping Of their functions. H
also set September IL as a deadline
for receiving applications for none
from the $4,000 ,OOO,0 works fund.
Some Of the largest cuts in per
sonnel and expenditures are expecte
to be made in the various relief or
ganizations. AS the works program
progresses, more and more States will
cease to receive direct relief funds
which likely will result in a reduction
in administration stats.
Under the new presidential orders,
the emergency agencies will have to
obtain in advance monthly approval
from the Budget Bureau for all ad-
ministrative commitments. Officials
here declined to say whether this was
preliminary to a definite drive to
balance the budget.