The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-06

De QeSlIdDle dS PERMANENT pdIIS Oh
government. Coincidentally, the
President launched the nation upon
a policy Of spending approximately
$500, 100000 annually on planned
public works program designed to
Ter1ake the face of nature.
Mr.. Roosevelt asked Congress to
appropriate S405, 100000 to be spent
for that purpose in the next fiscal
year. The money will be spend on
rivers and harborS, roads, power
dams and reclamation. He an
nounced there would be no further
appropriations for public works
loans and grants to cities and states.
WPA to Get Relief Funds
Public Works Administrator Har-
old l.. Ickes, however, will continue
to circulate his revolving loan fund.
1t consists of sums previously appro-
priated and lent and subsequently
repaid to be lent elsewhere. The
S405 100000 does not include funds
for further housing projects.
Whatever sum is appropriated for
relief by this Congress will be spent
largely by the Works Progress Adj
ministration.
Mr. Roosevelt reported:
/. Government credit is at its
highest point.
2. Government finances are in
best condition in seven years.
3. Private industrial employment
ebOtIe ct,hcto otio1 itoprea co
No New Taxes Necessary
No new taxes are necessary under
present New Deal policies.
The message called upsn Congress
to continue the New Deal program.
1t promised that the nation may
confidently look forward to contin-
ued reduction Of deficits, continued
increase in tax receipts under ,eX-
listing schedules and to steadily di-
minishing expenditures for relief.
Asks Potato Act Changed
Mr.. Roosevelt re commended:
/. Repeal of the .AAA amendment
earmarking 80 per cent of GUS
toms receipts to encourage eXpor-
tation and consumption of agricul-
tural products.
2. Amendment of the Potato Con-
troll Act from which it was stated no
appreciate revenue was expected.
3. Legislation to permit appro-
priations to be transferred among
projects within any single depart
ment to achieve flexibility.
a. Legislation to bring every
agency of ~nvernment, including
government ned or controlled
corporations, under control of the
director Of the budget,
Flags Revenue Earmarking
The President complained that
the AAA customs receipt ament-
ment, calculated to divert $90,O00,-
900 to 100000 900 from the general
Treasury fund, had been enacted
without consideration or debate.
He said the practice violated
sound administrative principles and
established an undesirable prece-
dent in earmarking revenue. So
far the only use made of the money
so diverted has been to pay cotton
farmers the difference between the
daily cotton price and II cents a
pound.
The proposed Potato Act amend
ment would exempt a purchaser of
bootleg potatoes from prosecution
and would increase the tax exempt
ed individual producers quota from
five to so bushels.
Although the budget forecast the
seventh successive year Of Federal
deficits, Mr.. Roosevelt emphasized
that deficits steadily were diminish
ing while Federal revenue increased
under the New Deal.
Predicts Drop in Deficits
"There is no doubt" he said, "of
the fundamental SoundnesS of the
policy of 1888. If we proceed along
the path we have followed and with
the results attained up to the pres
ent time we shall continue our sue
cessful progress during the coming
years.
Stated more consiSely, we can
look forward today to continued
reduction of deficits, to increased tax
receipts and to declining eXpendi-
lures for the needy unemployed.
THE item for relief remains.
Without that item the budget is
in balance"
Mr.. Roosevelt estimated Federal
income in the next fiscal year at
mn AN0 flNn cnnnY1A 1QrnnCt
revenue in American history. He
estimated expenses for all regular
government activities. including
AAA, CCC and PWA at SIS .069 ,000,0 900
plus $5S0,000,000 for statutory debt
retirement. He said he would have
a $5,000,000 surplus after having
paid for all of the regular expendi-
lures of the government plus debt
retirement"
Expects to Spend Balances
Out Of the unexpended relief and
recovery balances, Mr.. Roosevelt eX-
poets to spend 81 ,103 100000 during
the next fiscal year. This sum
represents funds already obligated
or allocated out of the 1888 and 1885
PWA and works-relief appcopria-
tionS, but which will not be spent
until after July when the new
fiscal year begins.
Subtracting the 100000 regu-
lar expenditures surplus from the
contemplated $l,103,000.000 of re-
covery and relief spending, Mr..
Roosevelt arrived at the minimum
gross deficit for the next fiscal year
81, 098,000,000. If the deficit is
held to that sum it will be S2.136,-
100000 less than the estimated gross
deficit for the current fiscal year
which will end June 80.
Mr. Roosevelt cited the declining
New Deal deficits:
1934-S3989 600, 600.
1935-S3575 100000.
1865, 234 100000 (estimate)
1937--sl098 100000 ESTIMATED and