Evening star., 1936-01-06
BUDGET REDUCED
BILLION FOR 1887
New Relief Funds Omitted
BY President-Gain in
Receipts Seen.
Continued From First Page)

to cover such charges. 1t Is lmpor-
tant that as we emerge from the de-
preston that no new activities be
added to the Government unless pro-
vision is made for additional revenue
to meet their cost
Must Provide Bonus Money.
This was interpreted today as mean
ing that if the legislation for imme-
diate passage of the bonus bill entail
ing perhaps an expenditure Of more
than $4,000 ,000, 900, the President will
call upon Congress to provide the need
ed taxes to meet the payment. II
Congress passes the bonus bill and
fails to raise new revenue, the payment
will have to be made through addi-
tional borrowing by the Government.
The President proposes to increase
expenditures for national defense, for
the Navy and the Army.
For example, the estimate OF appro-
priations for the Navy Department are
$549 59l ,299 for the fiscal year 1887.
an increase of more than s167 $50 900
over the appropriations for 1886. But
because of unexpended balances COM
ing over from former appropriations 1t
is estimated that there will be expend-
ed on the Navy Department and naval
establishment more than $500 0OO, 900
during the coming fiscal year.
For the construction of naval vessels,
s182. SOC. 900 is estimated. an increase
of SIS ,0OO, 900 over the amount appro-
prlated for that purpose in 1886. These
figures, however, do not represent the
total funds available for the construc-
ton of vessels. Reappropriations and
unexpended balances bring the total
up to s243,0O0,000 for this purpose. 1t
will provide for continuing work on "a
Of the vessels now under construction
and for beginning the construction OF
Is new vessels to be laid down in July,
1886. Provision is made for 273 planes
for the Regular Navy as requirements
and A for the Reserves, and adding
go planes to the number contemplated
for the Navy. The personnel of both
the Navy and the Marines will be
increased
S369. .919 $50 for Army.
For the Army the proposed appro-
priations, under the national defense
item. total 1868, ,9ls,566, which is more
than $50, ,00O, 600 in excess of the ap-
preparations for the year 1886.
The budget message shows that
within the last few months control OF
the administrative expenses OF 20
emergency agencies has been vested IN
the Bureau of the Budget. The bureau
has effected substantial reductions in
proposed expenditures for admins
trative purposes. These agencies are
the Agricultural Adjustment Admin
istration, Commodity Credit Corpora
ton, Electrical Home and Farm Au-
thority. Export-Import Banks CD,
Farm Credit Administration, Federal
Co-ordinator of Transportation. Fed
eral Deposit Insurance Corporation
Federal Emergency Administration OF
Public Works, Federal Emergency Re-
lief Administration, Federal Farm
Mortgage Corp, Federal Home Loan
Bank Board, Federal Housing Admin
istration, Federal Savings and Loan
System, Federal Savings and Loan In
surance Corp. Federal Surplus Relief
Corp, Home Owners Loan Corp, Ma
tional Recovery Administration, Re-
construction Finance Corp, and Ten
nessee Valley Authority. The Resettle-
ment Administration, however. has not
vet been included, it was said. Tne
Presidents purpose. however, IS to
have all governmental agencies, In
Guiding Government owned and Gov
eminent controlled corporations, with
in the authority of the director of the
budget with respect to apportlonments
Of appropriations and OF otner LUNGS
available to them.
Interest Rates Reduced.
The President shows that there
has been a material reduction OF the
interest rates paid by the Government
on its obligations, effected during the
course of rehnancing Government
loans
The credit of the Government"
says the President, lis in sound con-
dition."
To bolster this statement, he says
that the average rate on the interest
bearing debt of the Government on
November 80, 1895, was 2575, whereas
on June 30, 1894, it was 3.1S. More
than s10O,oo0oO0 saving in interest
charges has been made on reflnancing
OF Liberty Bonds.
The total moneys appropriated and
allocated for recovery and relief, the
budget sets forth. up to October 81,
1885, totaled SIT .558. .405.37. This
sum is made up by adding together
the funds made available by various
appropriation acts Of Congress and
the funds provided by the Recon-
struction Finance Corporation, which
amounted to more than Sc. 600, ,000. 900.
The President at the outset of his
budget message strikes note of con-
graduation that q broad national
policy" adopted nearly three years
ago by the Congress and the President,
has moved steadily forward toward
its objective. The many legislative
acts creating the machinery for re-
covery, he says, "were all predicated
on two interdependent beliefs. First,
the measures would Immediately cause
q great increase in the annual ex-
penditures of the Government-many
Of these expenditures, however, in the
form Of loans which would ultimately
return to the Treasury. Second. as
q result Of the simultaneous attack
on the many fronts I have indicated,
the receipts Of the Government would
rise definitely and sharply during the
following few years, while greatly in
creased expenditure for the purposes
stated. coupled with rising values and
the, stopping Of losses would, over a
period of years, diminish the need for
work relief and thereby reduce
Federal expenditures. The increase
In revenues would ultimately meet
and pass the declining cost Of relief"
Depends Upon Employers.
The President insists that this de-
sired end is already approaching. We
R@,s Iertr fnruo ~ he sav~ uko<Sav 20