Evening star., 1936-01-06

Try is aDle 10 Te-eIupioy CAooe VIII iIO"
are without work"
In looking at the revised estimates
for the fiscal year 1896 am more than
pleased 20 find that we have not only
accomplished what said We would in
my budget message of year ago, but
that the results with respect to both
expenditures and receipts have sir
passed expectations.
/. My budget message Of January.
1885, forecast that the expenditures
for the fiscal year 1886 would be
$8,520, ,000,0 900. Our most recent esti-
mate shows that our expenditures will
be $7,645 ,000, 900. or $875, 100000 less
than originally forecast.
2. Receipts were estimated in jan
uary, 1885. at $3,9s2. .000. 900. At the
present time 1t appears that they will
b" $4,411 100000 or an increase Of
$4l9, 9,000, 900.
8. The message of January. 1895,
forecast a gross deficit of s4,528, ,0Oo.-
coo. and the most recent figures shcw
that the deficit will be 1924 900, 600.
or a decrease of $1,294. .000, 900.
improvement Credited to
Policies Pursued Since 1888.
This great improvement Of the fiscal
outlook during this present year has
been brought about through policies
which the Congress and the President
initiated In 1893 and which We have
since maintained.
Now let US look at the budget for the
fiscal year 1887:
To run all the regular activities of
the Government will need a total of
S., ,069, 100000. These regular activities
include interest on the public debt,
ma jor public works, operations of the
Civilian Conservation Corps, and agri-
cultural benefit payments, but do not
include strictly work relief items.
expect to pay for these regular activi-
ties with estimated receipts of $3.50
000, 900, leaving an excess of receipts Of
$685.. 100000. Out Of this $685., 900 900
I will need $3.50. .000, 900 for debt retire.
ment. which will still leave $4,000 900
Of excess receipts over expenditures
after having paid for all Of the regular
expenditures of the Government plus
debt retirement.
The item for relief remains With
out that item the budget is in balance
To make today a formal budget esti-
mate of the amount necessary for work
relief would be Of necessity a difficult
task We have too recently reached
our goal of putting three and one-half
million people at work: and the bent
ficial effects from this program Al q
from increasing expenditures on public
works cannot be foretold as accurately
today as it can two months from now.
Furthermore. employment by privs te
industry continues to show substantial
gains over the figures of year ago.
1t Is reasonably certain that the tolal
appropriations for work relief during
the fiscal year 1897 will be far less than
during the current fiscal year. 1t is
estimated in this budget that expend;-
lures for recovery and relief out OF
unexpended balances of previous emer-
gency appropriations will amount to
81, ,103 100000. Including these expen-
ditures the gross deficit for 1887. with
out an estimate for additional work re-
lief, Is less than the gross deficit for
1886 by s2.136,0O0, 900. I do not antici-
pate that the need for additional relles
funds will be as great as that sum.
Figures Are Elaborated
To Show 3-Year Low.
To state the case even more precisely.
the gross deficit Of the Government in
1884 was s3.989, 100000; in 1898,
$3,575 ,000, 900; in 1886 estimate,
1924 .0O0, 900. and in 1887 ESTIMATED
but not including any new appropr.a-
tions for work relief, 81 1.098. .000, 900.
Therefore, it is clear: First, that since
June 80, 1884. the gross deficit of the
Government shows a steady decrease
during the fiscal years 1885 and 1886.
Second. that if work relief appropria-
tions by this session Of the Congress
were made up to total of $2,136. .000.-
600, the total gross deficit for the fiscal
year 1887 would not exceed that of
1896, which was the lowest gross deficit
of the past three years. Therefore. 1t
follows that by whatever amount the
appropriation for work relief at this
session is less than s2.136,00O,0 900. the
gross deficit for 1887 will be less than
the deficit for 1885 by the same
amount.
With this limitation and this excel
lent prospect clearly in mind, am not
including in this budget estimates for
additional relief appropriations. shall
transmit such estimates with far
greater knowledge, and. therefore with
greater accuracy in sufficient time be-
fore the adjournment of this session
to give the Congress full opportunity
to examine into the subject and to
make the necessary appropriations.
Credit In Sound Condition
And Bond Interest Cut.
The credit of the Government is in
sound condition. On October Is. 1888,
wartime issues of first and fourth
the aggregate amount of $4,000. .000,-
900, bearing interest at an average
rate Of about Az per cent. Today
this entire amount has been refunded,
of which about $4,000, ,000. 900 was ex-
changed for long-term bonds bearing
interest at rates ranging from 2% to
3A per cent per annum; 81 SOC, 900 900
was exchanged for Treasury notes
bearing interest from IL to 2hs per
cent per annum. and the balance was
paid in cash. The average rate on
the securities issued to refund the
Liberty bonds is less than az per cent
per annum. saving Of approximately
1ss per cent a year, or an annual re-
duction in interest payments of more
than $100, ,0oo, 900 on these particular
securities.
The average rate on the interest
bearing debt was on June 30. 1884,
approximately 318 per cent, whereas
on November 30. 1885, 1t had been