Evening star., 1935-01-22

SUPPLY BILL CUT.
5000, ,O25,598 Recommend
ed to House, $194,884,642
Less Than 1885.

BY the Associated Press.
The Treasury-Post Office supply
bill, carrying a total of $500, O,O25, ,59S
for the two departments, was re-
ported to the House today by its Ap-
preparations Committee. This was
$194, 1884, 642 less than the 1885 allow
ance.
The amount recommended for the
Post Office Department was S724.-
264, ,449, as compared with $725 ,282,-
569 asked in the budget and with
appropriations of $669, 793, $40 for the
1895 fiscal year. Nearly half of this
$54,470,509 increase was due to forth
coming pay cut restoration.
Treasury Cut ,355,151.
The Treasury Department, with its
subordinate units such as the Public
Health Service and Coast Guard, was
allowed $175,76l,l49. This was a de-
crease of $249, 9,355,151 compared with
1885 appropriations, but in the latter
were included $187, 100000 in "spe-
cial items" such as advances to the
Agricultural Adjustment AdminiStra-
ton for financing cotton and land
bank financing. Budget estimates for
the Treasury were cut $376,3 1886.
The disputed ocean and foreign air
mail subsidies weathered the scrutiny
of the Appropriations Committee and
came through unimpaired in its rec
concentrations of funds for the Post
Office Department. The committee
pointed out, however, that studies are
under way looking to the future sub
sidy policy. Pending the outcome,
concentrations of the budget to con-
tinue the amount of the 1885 appro-
priationS.
The report on the committee hear
ingS showed the Public Health Service
believes it will need a 25 per cent in
crease in funds to combat epidemics
during the fiscal year Health service
physicians said an additional $50 SIT
would be needed for this purpose, Of
which S34,389 would be used against
spotted fever
The report also disclosed the Treas
ury officials have called attention to
increased smuggling in all lines, some
of it backed by the lords OF crime"
Smuggling Gains Shown.
Customs Bureau and Coast Guard
spokesmen testified, during hearings
on the bill, that liquor smuggling had
been gaining rapidly since March,
after falling off in the wake of repeal
Traffic in aliens. narcotics and Grim
inals was described as linked closely
with the liquor trade.
Comdr. S. V. Parker of the Coast
Guard estimated that liquor snug
Cling at the present rate meant an
annual revenue loss of $4,000 900 or
S60,000,000 He added that Is to 20
vessels operate off the coast north of
the CarolinaS in an active week and
perhaps five in Southern waters.
To combat smuggling the commit
tee allowed the Coast Guard S4,4l4,-
900 more for the 1886 fiscal year than
was approved last year.
Secretary Morgenthau, who has
boasted about the way Treasury issues
have been snapped up and oversub-
scribed, was revealed to have been
uncertain about some Government
financing back in September.
Appropriations Recalled.
Hearings on the Treasury bill
showed Morgenthau felt for while
that a Treasury offering would not
be taken up completely.
Describing a sale of securities IN
early December as the most successful
issue that had been floated in four
years. Morgenthau was asked by Rep
reSentative Mcleod, Republican. of
Michigan:
Does that mean there was trouble
with some other issues?"
Il should say So" the Secretary re-
piled.
TO what extent?"
In the issue in September, for
while it looked as though it would not
go. There was so much pessimistic
talk in New York that I think they
succeeded in frightening themselves"