Evening star., 1936-07-02

to furnish them with facts and figures
on the years operations. The Govern
ment of the United States Is your busi-
ness. You are its stockholders.
Tonight am going to report to you
on the finances Of the Government for
the year just ended and give you the
results.
THE man who Is responsible for the
conduct Of q business enterprise es-
Inmates just before the new year begins
what the expenses will be and what
receipt3 he can reasonably expect. He
then plans the years activities on the
basis of these estimates. But the Gov
ernment, under the law, has to es-
timate each Fall its receipts and ex-
penditures for q fiscal year which will
not begin until more than six months
later. Thus, nearly two years ago, In
the Fall Of 1884, estimates were pre-
pared for the fiscal year which began
last July, and which ended last night.
At that time, nearly two years ago, 1t
looked as If our revenues would total
Just under $4,000, ,000, 900 and our ex-
penditures. excluding debt retirement,
would amount to almost So, 600, 900 900.
On this basis we would have shown o
net deficit for the year Of almost
$4,000. 100000.
You and cannot always tell when
we make our business plans what un-
foreseen and extraordinary events may
increase our expenses or reduce our
revenues. The manufacturer whose
plant is situated In q flood area may
have his calculations upset by a dis
astrous flood. His income may be
reduced. His expenditures may be
increased
THE business of the Government
also Is subject to unforeseen and
extraordinary events. Scarcely had
the present Congress met last January
when two events completely changed
the budget outlook. First, the pros
pective revenues were cut down as a
result Of the decision Of the Supreme
Court that the agricultural adjust
ment act was unconstitutional. This
meant q loss to the Treasury In 1885
of nearly half billion dollars. Second,
prospective expenditures were in
creased by an act of Congress direct
ing the immediate payment Of the
veterans adjusted service certificates.
To provide for the payment Of these
certificates which, under their origi-
nal terms were not due until 1945,
the expenditure program for 1896 was
increased by $1.70o,o0o 900.
AZ hot &l~
$4,11s,ooo, 900 Receipts.
The actual receipts coming in to
the Treasury during the year which
ended last night aggregated s4,116,-
100000. This Is $4,000. 900 more
than came in during the fiscal year
1885, notwithstanding the loss of
$4,000, 900 through the elimination
of processing taxes. But revenue from
other sources increased $760. 900 900,
a gain of % per cent. due In large
part to improvement in business and
agricultural conditions.
Our revenues come mainly from
two sources-income taxes and mis-
cellaneous internal revenue OF the
income taxes corporation and individ-
ual income taxes amounted to nearly
a billion and a half for the year that
just closed-an increase over 1885
Of 80 per cent. The miscellaneous
taxes brought in over two billion dol
lars-an increase OF 20 per cent.
Customs receipts rose ~ per cent.
we spent during the year $780,
100000. excluding debt retirement
Three and q half billion was for ordi-
nary operation of the Government.
approximately $3,30o. 900 900 was for
recovery and relief. The net excess of
expenditures over receipts was s4,400,-
900 900. But leaving out Of considera-
ton the payment to veterans Of
81 ,700, 900, 900, the excess Of expendi-
lures over receipts for the fiscal year
just ended Is $2,700,000,00o.
"As we have seen, ordinary opera
ting expenses accounted for $780,
100000 Of which National defense took
$3.50 ,000, 900; annual continuing pay
ments to veterans nearly $500, 900 600;
interest on the public debt another
$3.50 .0o0, 900: agricultural aid $780,
900 900, and the other ordinary opera
ting expenses of the Government
5000 o00, 900.
How were the recovery and relief