The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-07

year of putting to work $500
There was no recOmmen-
dation for increased taxes.
Expiring nuisance levies are
to continue.
Mr.. Roosevelt said relief
appropriations for the current
fiscal year would be exhausted early
next month. He asked Congress to
transfer 5000, 900 for unobligated
emergency appropriations to pay for
relief until useful work financed by
the Government absorbs the dole
horde.
The gross deficit in the 1886 fiscal
year will approximate S4,520,OOO,OOO'
of which $685.. 100000 will represent
debt retirement. Administration
spokesmen assured questioners this
budget was not a step toward cur
rencv initiation. The President estl-
mated that 100000 persons had
been re-employed since March, 1888.
The message estimated that the
national debt would increase from
approximately S31. 000,O00,000 on July
l. 1885, to a record high Of S34, 239,-
100000 on June 80, 1886, the end OF
the next fiscal year.
Trend Is Downward
Mr.. Roosevelt said the budget he
presented this afternoon was in bal
ance except for expenditures to
create work for the jobless.
The trend of net recovery and re-
lief expenditures is downward for
the next fiscal year compared with
the one which will end June 80,
1895. and regular Federal expenses
are increasing.
Mr.. Roosevelt fOreseeeS over all
expenditures of SS.52O,OOO, 900 in the
next fiscal year. slightly more than
half of it for recovery and relief.
The Administration is convinced this
rising rate of expenditure does not IN
any way require currency initiation
Profits on gold seizure-S2,8 1l,-
600. O0O-have not been tapped so far
for regular or emergency Govern
ment expenditure. That hoard IS
regarded as a comfortable backlog OF
ready cash for use in unforeseen
and unprecedented emergency
Treasury statements indicate, how
ever. that some profits from the
minting of silver have been spent.
Defense Outlay Is Huge
For national defense Mr.. Roose-
welt proposes an unparalleled peace
time outlay of 1893, s4S,O 65, of which
approximately s1O6.OOO,OG0 is car
ryover from the present fiscal year.
The remainder is new money" for
the defense of the nation.
Mr.. Roosevelt expressed the hope
as he submitted his message to Con-
greSS that diminishing figures for
recovery and relief and for total
expenditures represented the begin
ming of a series of annual reductions
leading to an absolutely balanced
budget. He expressed no opinion
when the budget might be balanced.
His resume of the financial plan
for the fiscal year 1886 showed that
recovery and relief costs in the
present fiscal year include a charge
of Sl99O00.OOO for Agricultural Ad-
juStment Administration payments
10 farmers.
Represents Only Excess
The $ls9, 10000 represents only
the excess of AAA expenditures over
receipts Of processing taxation. The
total AAA expenditures are esti-
mated for the present fiscal year
at s7SS,0O0,O00 and processing tax
collections at S589. 600. 600 For the
next fiscal year Mr.. Roosevelt esti-
mates that AAA taxes will exceed
expenditures by S9S.000.000 and this
sum has been credited against pros
pective recovery and relief expendi-
lures. reducing that sum from
$4.110,000,0OO TO the foregoing
$4.0I2 100000.
While Mr.. Roosevelt has not at
tempted 10 belittle the rising ma
tional debt by counting RFC and
other obligations as assets, neither
has he charged against the Gov
eminent as a liability certain con-
tingent obligations Of the Govern
ment. These are represented by
bonds Of the Farm Credit Admin
iStration, Home owners Loan Cor
poration and other emergency
agencies which actually are guaran-
teed by the Government. II these
obligations are defaulted the Treas
ury would have TO make them good.
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