The Waterbury Democrat., 1936-02-07
PRESIDENT HAS
 BEGUN TO SLASH
Curtailment of All Lend. ing, Needs-No Bonus
 Tax Proposals
By EDWARD w. LEWIS United Press Stan C0rrespondent)

United Press Stan C0rFespOndenO Washington, Feb. 7-(UP)-Presi- dent Roosevelt has directed efforts of New Deal agencies toward . check in three years of unprece- dented peace.tiine federal expendi- lures, it was indicated today. De- partment heads studied probable lending end spending needs with view of "savings" below huge con- gressional appropriations to fight the depression. Preliminary reports already have been made to MT. Roosevelt. Indications that the president plans to apply tho brakes on unparalleled spending that has boosted the national debt by $i0,- 900, ,000,0 600 in three years were seen in several White House conferences. What Plans Include tna
 His plans were indicated in . series go r,....o! of swift developments that
 l. Announcement that Si,0oo,- 100000 would be topped from lend- ing authorizations of federal agen- cies. tGyy
 3. A report by department heads on probable spending needs ct . two-and.a-haif hour White House conference.
 3. Assertion by democratic con- gressional leaders that the presi. dent had dropped bonus tax propos- als for this session.
 {. White House assurance claim cd by congressional tax experts that the administrators tax proposals would be principally for financing the s600,000,000 farm program. Other Reductions
 Tn announcing that lending pow CTS of the Home owners Loan Cor poration, the Reconstruction Fi- nance Corporation and other similar agencies would be reduced by $l,- GOO, ,000, ,000, Mir. Roosevelt indicated other and similar reductions.
 This, observers pointed out, was purely Q "book" saving, since the New Deal found the large authofi- zations made by congress would not be fully needed. Much of the money loaned to non-government agencies has been repaid. No word was given as to what transpired ct the long White House conference yes- terday with heads of spending agencies. Participants emerged tight-lipped. Capital reports were that Mir. Roosevelt had directed his aides to report on any possible re" duction in the amounts they have been authorized to spend.
 Anxious to Curtail
 With an election campaign com. ing up the president was reported anxious to curtail federal expendi' lures wherever possible. Congres. sional leaders sought assurance that new tax proposals be held ts the minimum. Mir. Roosevelt was believed, in his series of conferences with heads of lending and spend- ing agencies, and his financial ad- visors, to have obtained clear pie ture of the whole set-up of the gov- ernment financial needs in line with Thew demands made upon 1t by the bonus and prospective farm legisla- 1 ton. Observers believed he may is- sue his directions regarding govern ment financing in @ presidential message to congress, rather than Q letter to the house ways and means committee, where new tax legisla7 ton must originate.
 Chairman Robert L. Doughton, of the house ways and means commit tee, and House Majority Leader William B. Bankhead, after their White House conference, predicted new tax recommendations would call principally for $450,000.000 to $500, ,O0O, 900 in substitute AAA taxes to finance the new farm act.