Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-12-18

StdJ6S
To explain that answer my in
formant went on to say that forces,
the will Of the mass, the shaping up
of public opinion in the next few
months. the impact of events on Con-
gress, the growth of employment and
the whole question of business recov-
cry would have more to do with direct
ing the Presidents course and the poll
cies of Congress than any one mans
desires.
This appraisal, coming from one
whose common sense is well known
and whose judgment makes his fore
cast of legislative trends hereabouts
accurate. is significant of the general
feeling as members of Congress re-
turn to Washington and discuss in
formally the state Of the Nation.
Another man who did permit HIM
self to be quoted and who also has
been in consultation with the Presi-
dent expressed the state of affairs
best by his references to revision of
tax laws. Senator Harrison of Mis-
s1ssippi, chairman of the Finance
Committee. puts his finger on the
whole trend by his comment on bust
ress conditions. Thus he was quoted
at the White House doorstep after
leaving the President, as follows:
= Expenditure Phase Unsettled.
THE reports of receipts to the
Treasury Department are most gratify-
ing. In fact, they are exceeding the
estimates of the Treasury and the
congressional experts. But it depends
largely upon the expenditures for
these emergency governmental sgen-
cies at this time before we can reach
the stage of balanced budget.
"As I have said heretofore, we are
hopeful, however, that with the i'm
provement in the general business sit
uation and the growing Treasury re-
ceipts from revenue, We can reach
balanced budget by 1888. AS result
Of this, I think We can speak with
more optimism on the question of
balanced budget than We thought pos
sible two years ago"
The words of Senator Harrison we're
C7T6IullN ubl6IGu. IIS Ol h
balanced budget in 1895" may or
may not mean the fiscal year 1885
budget, but more likely Mr. Harrison
means that during the year 1888, pos
sbly in January, there will be budget
presented which looks toward a bal
ance between receipts and expendi-
lures. 1t would be almost a miracle
if the 1888 budget were balanced, be-
cause this is the budget to be presented
next month for the fiscal year begin
ming in July. 1887, and ending June
80, 1888. The fiscal years, incident
ally, are always labeled by the year in
which the second six months fall.
Mr.. Harrison's enthusiasm about the
growing tax receipts is justified. but
the Treasury estimated a big increase
for this year any way. when last Sep
TENDER it predicted $500 100000 as
receipts from all sources for the fiscal
year ending next June 80, and there
was considerable allowance made for
the improvement in business conditions.
Spenders Are Warned.
Quite a different view is held by
Representative Buchanan, Democrat,
chairman of the powerful Appropria-
lions Committee Of the House, who
comes face to face with the spending
proclivities of the various Government
agencies. He says quite frankly that
If agencies and functions are added
right along, there can be no balanced
budgets. Naturally, he sounds note
OF this kind to discourage the spenders
who are coming before his subcommit-
tee at the hearings going on this week.
Further light on the balanced budg-
ct idea comes from Gov. Eccles of
the Federal Reserve Board, one of
the leading advocates hitherto of the
spending philosophy. He speaks of a
Technically balanced budget" by 1899.
This probably means without debt re-
tirement.
All in all there is lot of talk about
balanced budget, which Is reaSsur-
ing, but there is nothing as vet visi-
BILE to the naked eye which shows
that the Government agencies are
really going to stop spending. The
increased income from taxation is
encouraging, but to a great many
Government officials it only means in
creased opportunities for charging
the scope of their spending. Most
reforms require new expenditures, and
Judging by the pressure on the Fed
eral Government to keep on supply
ing funds to States, cities and coun-
ties, Mr.. Roosevelt himself will have
to reverse the tide That's the place
where his personality and political
strength could be made to count.
So the real question in Washington
today is not whether the President
will turn to the right or the left, but
whether he fill stop the spending and
economic or keep on depending on
the huctuating curves of tax receipts
hue