Evening star., 1936-02-06
FINANCES FORCING
PRESIDENTS HAND
Decision to Cut Expense,
However, Hard to Enforce
in Campaign Year.
BY DAVID LAWRENCE.

BY DAVID LAWAENCE.
The best news that has come out of
the National Capital in nearly three
years is the determination Of Pred-
dent Roosevelt to begin to cut the ex-
penses of his administration.
Decision to cut is, Of course, one
thing and putting cuts into effect Is
quite another, as many business man
has found to his sorrow. In Govern
ment it is even more dificult, for in q
political year the howls that 60 up
when expenses affecting pet projects
of Senators and Representatives are
interfered with make life none too
pleasant for those welding the prun-
ing knife.
The President thus far has tackled
only the so-called unlimited authoriza-
tions The general public little real
izes how extensive are the spending
powers of some Of the Government
agencies. Congress, in its feverish
desire to help in the crisis OF 1923,
gave the r. F. c.. for instance, unlim-
tied power to buy preferred stocks in
banks. The Home Owners Loan Corp,
while limited in the amount Of mort
cages 1t could refinance, has found
that unless its lendings are curtailed
the pressure to take over more and
more mortgages would get beyond con-
troll Indefinite obligations impair
borrowing power.
Many Reasons Involved.
So there are many reasons other
than simple economy which are
prompting the Chief Executive to do
away with some of the authorizations
that may become an embarrassment.
It's lot easier to say. Congress has
limited our authority" or, I'VE have
used up what Congress has given U.s."
than to face the persistent requests of
those who, having been to see their
Congressmen, are told that it Is at the
executive end of the Avenue where
unlimited powers to spend exist.
Some idea of the seriousness broadly
speaking, that faces the administration
in the matter of curtailing expenditures
may be gained partly by reading about
the imitation scare and the movement
Of foreign-owned gold from America
back to Europe But primarily the most
revealing information is contained in
the daily Treasury statement. Thus
the latest figures-those available up
to the close of business for Monday,
February 5, of this week-show the
following official comparisons:
Current 1895. 1895;
PefeiP's Pefieip 3 5,is3s5o,5SS 1,Sss:isi. .ss5
%" on hand 1856 .e54.s31 gees s4o,c41
So it will be seen that current ex-
penses are up over year ago by about
s277 900 900, while the receipts have
increased only $4,000, 900 above the
same date q year ago. The cash
balance is s342, 900 900 less than 1t was
year ago.
Cumulative Deficit Rising.
As for the cumulative deficit, this
Is running $l9l ,0O0. 900 above what
it was a year ago, a very unhappy
circumstance in view Of the Pret-
dents expressed hope that the Gov
ernment might at last look forward
to receding rather than increasing
deficits.
The need for economy is apparent
by an examination of the Treasury
figures and yet the curtailment Of
Government activities Is not easily
accomplished without considerable
grief politically. Subsidies mean votes
and these may Ill be spared various
Congressman and Senators up for
reelection in November. The Presi-
dent is believed to recognize that the
time has come to conduct . surgical
operation on some of the so-called
emergency agencies. but the tempta-
ton is to defer this reducing process
until after election.
So far as Congress is concerned, the
imitation bloc derives considerable en-
couragement from the unbalanced
budget and rising expenses because
the inflationists want spending power
intensifie through the distribution Of
printing press money.
Mr.. Roosevelt is finding himself
every day more and more forced to
resist the inf1ationists, and the best
way he can do it is to strengthen the
credit of the Treasury for borrowing
purposes until such time as tax re-
ceipts are sufficiently voluminous to
meet the necessary expenses of gov
ernment. As the day Of reckoning
approaches, therefore, q sound fiscal
policy is being compelled by the simple
statistical facts of the Treasury state
ments.