Evening star., 1935-01-05
Budget of S8,000,0 ,000,0 900
for Coming Fiscal Year
Predicted by Those Close
to Administration.
C0NFEREE SAYS A. A. A.
MODIFICATION ONE GOAL
Townsend Plan Seen as Threat
to More Conservative Program
for Age Pensions-$416, ,Q00,-
coo Nuisance Tax Continuation
Considered Likely.

Considered Likely.
Copyright, 1885, by the Associated Press)
President Roosevelt intends to ask
Congress, an authoritative source said
today, to provide $4,000 100000 for
what he terms the American Plan" )"
to quit this business of relief" and
put 3,5o0,ooO unemployed to work.
This, as outlined by persons promi-
nent on Capitol Hill, would be the
work relief figure for the fiscal year
beginning next July /, though it would
not all be spent if reviving business
absorbed enough of the jobless
For ordinary Government running
expenditures in the year, it was indi-
Gated, about $4,000, 100000 more would
be required. Thus the budget would
be about 100000, 900.
May Get Unused Funds.
President Roosevelt outlined to con-
gressional leaders last night a plan to
expend about $3.50, 900 900 to tide the
relief efforts over the transition period
from the "dole" to "jobs-for-all." This
sum is expected to come, at least in
large part, from funds previously ap-
propriated.
1T is likely" said Senator Robinson
Of Arkansas, Democratic leader, after
the White House conference, that
funds for relief will be provided by
joint resolution and that certain sums
heretofore appropriated and which it
may be found not necessary to expend
may be transferred to that purpose by
appropriate legislation"
In his first message to the Seventy
fourth Congress yesterday, the Presi-
dent enumerated many tasks.
Among them were consolidation of
Federal regulation over all forms Of
transportation, renewal and clarifica-
ton of the N. r. A, strengthening of
crime detection and prevention, aboli-
ton of "evil features" of utility hold
ing companies improvement in forms
and methods of taxation and tapering
off Of emergency credit activities.
Objectives Forecast.
Although there was no detailed an
nouncement of last nights discussion,
one conferee who could not be quoted
by name listed these things as among
those the President is considering or
definitely has decided to recommend:
/. Old age as well as unemployment
insurance. For these, it was said, the
aL aynnHf tn
bear the initial burden, with contribu-
tions providing the funds later. The
President was said to desire this pro-
gram to become effective promptly.
1t was said these forms of social Sc
curity and related matters may be
incorporated in single piece of legis-
lation.
2. Continuation and modification Of
the agricultural adjustment act.
8. Authorization of a telephone
telegraph merger, with the Federal
Government possibly fixing rates for
the monopoly.
4. Continuation of $416,00o.000 in
emergency nuisance" taxes.
S. Making permanent the present
$4,000 maximum insurance of bank
deposits under the Federal Deposit
Insurance Corp.
Would Continue r. F. C..
6. Continuation of the lending au-
thority of the Reconstruction Finance
Corp.
Z. Enlargement OF the resources of
the Home Owners Loan Corp.
Most of last nights conference was
devoted to discussion of the work pro-
gram. President Roosevelt empha-
sized, 1t was said, that the budget for
ordinary expenditures would be bal
anced and reiterated that the spend
ing would not strain the Govern
ment credit.
In the discussion Of old-age pen
sions, one conferee held that the
Townsend plan-which promises 5000
q month to each person over CO.
would be a threat. He said millions
had signed petitions for it.
Some House members, however, re-
piled that with a more conservative
pension plan, they believed they
would block it.
President Roosevelt's hope, one lead.
er asserted, was that in extending the
Home Owners Loan Corporation an
addition of $500. 100000 in available
capital would suffice. Sentiment on
the Hill. however, is considered strong
for a billion dollars more.
"Dole" Would Taper Of.
As plans now stand, the dole
would taper of quickly, with the work
relief program beginning in April and
taking over completely about next No.
vember.
Besides aiming at employing $780,
900 workers, the Government is seek.
ing to return 100000 "unemploy.
ables" to the care of the States. Ac-
cording to F. E. r. A. estimates, these
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