Evening star., 1936-09-03
Happy Daze Is Here Again.

Happy Daze Is Here AGAIN.
President Roosevelt, in lengthy
statement revising his 1887 national
budget, sees deficit on June 80 next
of $20e7 100000. This is the deficit for
the present fiscal year only. 1t is. some
of his supporters hasten to point out,
the smallest deficit for any year during
his administration. But what deficit!
Furthermore, the deficit now foreseen
by the President is about $1,000, ,o0O, 900
more than the deficit for this identical
fiscal year predicted by the Chief Exec
utive in his budget message to Congress
last January.
The budget summation now put for
ward by the President is full of loop
holes, of ifs and ands. He leaves open
the possibility of new request to Con-
gress for additional relief for the unem-
ployed and for drought sufferers. In
the light of what has been happening
in the past, the possibility of such re-
quest becomes a probability. Such a
request for more funds will depend upon
a survey to be made early in 1887. The
President surmises that if there is a
demand for more relief funds it will not
exceed a half a billion dollars. That,
however, is a matter which is left to
be determined later.
The public debt, it now appears, is to
reach the all-time high of $34, 1873 ,543,-
494 on June 80, 1887. According to the
figuring of the President, this total pub
lie debt will be only s410,Oo0,000 greater
than the public debt on June 80 last.
To the ordinary lay mind it would
appear that if deficit of $4,000, ,000, 900
is to be expected at the close of the
present fiscal year, the debt of the Ma
tional Government would be increased
by approximately that amount. There
are, according to the President, certain
offsetting advantages which must be
considered in fixing the size of the pub
lie debt. 1t is planned, for example, to
use money in the Treasury working
balance. This working balance was
brought to more than $4,000, ,ooo,0 900 by
excessive borrowing to meet soldiers
bonus and relief payments.
In addition, there have been repay
ments on Government loans and in
creased revenues from taxation, to be
charged against the deficit, when 1t
comes to figuring the total public debt.
The payment of the soldiers bonus
on congressional mandate, the failure
of the processing taxes when the Su-
preme Court of the United States de-
clared the original A. A. A. unconsti-
tutional, and the upset by the same
court of the Guffey coal act are declared
to be largely responsible for the under
mining of the Presidents January
budget. At that time it was fully under
stood, however, that there was every
prospect of the bonus payment being
ordered by Congress, and of the outlaw
ing of the A. A. A. and it's processing
taxes, as well as the outlawing of the
Guffey coal act. 1t has been the habit
Of the administration to butt its head
against stone walls when it comes to
finances.
The Presidents summation of the 1897
budget comes on the heels of recent
White House pronouncements that no
increases in taxes need be made by the
new Congress. With a deficit now esti-
mated at over two billion dollars and
the probability that it may be increased
by at least another s50O,OOO,O 900, the sug-
gestion that no new taxes will be needed
takes on the complexion of political
announcement intended to have effect
on the presidential election.
In the past It may have been advisable
for the administration to make its esti-
mates of expenditures much In excess
of receipts. When the spread between
the two proved considerably less than
expected it was hailed as an accomplish
ment Of the New Deal administration.
It is too close to an election, however,
for any such tactics today. Estimates
are pared to the limit. But what will
be the final outcome when June 80, 1887,
rolls round is another matter. At the
time of the recent White House con-
ference on taxation Secretary Morgen-
thau declared: with continued recov-
cry we are steadily approaching a rev.
enue yield which will be entirely ade-
quate to cover the expenditures of
Government and to reduce the public
debt" This latest estimate Of deficit
for the present fiscal year throws
harpoon into that statement.