Evening star., 1936-02-06
ROOSEVELT MAPS
PLANS TO REDUCE
FEDERAL SPENDING
Summons House Leaders
and New Deal Chiefs to
White House.
TAXES TO BE DISCUSSED
AT LUNCHEON SESSION
patman Presses Plans to Force
Vote on Bonus Payment
With "Greenbacks.'
BACKGROUND

recovery and relief and hiked the
public debt from s21 900 ,O00,O0 10
more than $4,000 900 900. Public
debt at end OF World War l0aS s25,-
482,034,419. Keeping Federal in
come on par lOith expenditures
thus has become most pressing ad-
n,iristratipe problem OF Prestdent
Roosevelt.
Supreme Court inudliddtton OF
PROCESSING tar set-up and passage
OF bonus legislation, forcing Treas
uru to seek al least 000,O00,OOO
more than It had calculated, has
BROUGHT fiscal issue to head.
BY the Associated Press.
Financia' problems including
taxes-oco 4pied President Roosevelt
today in conferences arranged with
House leaders and New Dealers ham
ding major Federal spending.
Invited to a luncheon discussion
were Representative Bankhead OF
Alabama, the Democratic leader, and
Chairman Doughton of the House
Ways and Means Committee whlcn
originates all tax legislation
Next in the days schedule was a
meeting to check up on Government
spending-and possibly find places
TO cut expense.
Mr.. Roosevelt summoned Secretary
Morgenthau. Daniel Bell, acting bud
get director, and the heads OF the
works relief program - Secretary
Ickes, Rexford Tugwell, rural reset
tlement administrator; Aubrey Will
liams. deputy works progress admin
istrator, and Lyle Alverson, acting ol-
rector of the National Emergency
Council.
Taxes to Be Discussed.
At the White House, it was said the
luncheon meeting with the House
leaders was for general talk. VIII
taxes very likely to be mentioned.
Aside from stating that there woulo
be a tax bill of about $500, 100000 to
provide substitute levies for the out
lawed A. A. A. processing taxes, the
President has given no indication Of
what levies may be sought.
The belief of some high admins
tration officials that relief might get
the pruning knife apparently was
strengthened by the list of those in
yited to discuss spending problems.
Democrats were not alone in saying
that the hunt for possible places OF
retrenchment was in progress. Sen
ator Barbour, Republican, of New Jer-
sey, said recent moves proved he was
right in predicting a month ago that
bonus payment would place the
brakes on Government spending.
Imitation Fight Sharpens.
AS the President called his assist
ants into the fiscal conference for the
spending check-up, the fight over In
hation sharpened in Congress.
In the face of a fiat prediction by
Speaker Byrns that no "greenbacks'
will be issued, Representative Patman,
Democrat. of Texas proceeded with
plans designed to force a vote on pay
ing the $2,237 100000 bonus in new
currency instead of through borrowing
or taxes.
Though some Capitol Hill quarters
heard that the administration has not
ut present any plan to ask bonus taxes,
Patman said he would drive ahead
with his inf1ationary move anyway. II
the House Rules Committee, domi-
mated by an anti-inflation bloc, refuses
to give his legislation access to the
floor Patman said he would circulate
a petition to force action.
This would require 2l8 signatures
and some delay, however, and Demo-
cratic leaders predicted such plan
could not be carried out before the
session ends.
Patman Attacks Bankers.
Patman attacked bankers, attribut-
ing to them the recent movement Of
gold out of the United States.
"An attempt is being made to carry
several million dollars worth of gold
out of this country in an effort to
scare us, but it won't succeed" he
said. "It's the old shell came again.
The Country can afford to lose 81 ,000,-
600, 900 in gold without any damage to
cur monetary position"
Export of more than $15,000,00 of
gold was licensed by the Treasury
Monday and Tuesday, but the move
ment came to a standstill yesterday.
No further licenses were asked. FL
nancial markets attributed the exports
to the imitation drive.
With the financial budget knocked
far out of kilter by the bonus payment
bill and the invalidation of processing
taxes with which the administration
hoped to finance existing crop control
contracts, President Roosevelt dis
cIssed farm relief taxes with Secre-
tary Morgenthau, Secretary Wallace
and others last night.
The only word afterward was that
methods of financing the new $780,
100000 farm program were still in
the conversational stage"
Relief Funds Not Estimated.
Relief needs for the next fiscal
year have not yet been estimated
by Mr. Roosevelt, but efforts some time
ago said $2,000,0O0,0o0 might be
sought. Now high officials say new
study of the prospective relief load
is under way to see If that figure
can be reduced. The President was
said to have ordered the study in view
Of other heavy expenses.
Whether any sizahle cuts in relief
outlays would bring protests from
States and communities was one ques-
ton asked In the Capital. States have
been voicing demands for new dole
allotments.