Evening star., 1936-04-14
PLEDGE Of DEFICIT
CUT UNREAL|zED
Figures Indicate Year to
Show Expenses Gain
Again on Income.
BY DAVID LAWRENCE.

DIX DAVID LtANKAGENSEs
With only 80 days left in the pres
e,lt fiscal year which ends on June
30, the condition of the Treasury is
not IN accord with expectations. Presi-
dent Roosevelt's promise that this year
the deficit would by comparison with
last year show drop has not been
realized.
II recovery is here or on the way,
the official figures Of the Treasury's
condition show puzzling increase in
expenses instead of diminution.
Thus, using round numbers, here Is
the way the Treasury stands:
l. Expenses are $5,546, 100000, as
compared with s5.238 100000 just a
year ago.
2. Receipts are s3,1ss, 100000, as
compared with $2,980,000,000.
Thus, the Government is taking in
about $2l9,000,000 more than it did
a year ago, but it is spending $685.
600, 900 more than it did year ago.
So it is running behind its year-ago
situation by about S9O,ooO,O0O This is
reflected in the official figures for the
deficit now as compared with year
ago. Here it is:
Deficit year ago, $2,258,00o,00o.
Deficit this year, So BAT 100000.
3 Billion Deficit Likely.
Since the Government is running
behind last year with increasing speed
and since the bulk of the revenue pay
ments on income taxes have already
come in, the chances are the deficit
will run over $4,000, 100000 for the
present fiscal year and if it finally
does show up bit behind last year,
the difference will be relatively small.
The fact remains that the United
States Government for four successive
years will have had deficits in excess
OF $4,000, 100000.
The public debt figure Is the most
disappointing Of all. 1t is now at S21,-
$4,000 as compared with $28 1855 ,000,-
600 a year ago.
This Is larger than the President
anticipated in his budget message
when he said that the Federal deficit
would be S31,351. 100000 by July l.,
1887. So the Federal Treasury is way
behind its own official predictions.
Doesn't Include Total.
The public debt figures do not, Of
course, include the contingent LA
bilitieS, that is, the securities issued
which are guaranteed either as to in
terest or principal or both by the Fed
eral Government. That's another S4,-
500,000,000.
The worst aspect of the Federal
figures is that the Reconstruction
Finance Corp. Is no longer drain
on the Treasury but is actually pour
ing in money out of repayments from
the railroads and banks. Also the
Public Works Administration is not
causing much of a drain as it. too. is
using revolving fund.
The real crux of the difficulty Is the
way the w. P. A. or Works Progress
Administration expense is climbing
up. It is running at the average Of
about $45, 100000 week. These ex-
penses since last November have been
about $744,000000. The w. P. A. is
far more expensive than direct relief
in fact almost twice as heavy.
Another evidence of the fact that
business is getting better is that the
receipts from customs duties are $685.
100000 as compared with S265 1000, 900
a year ago. But all these improve
ments which reflect increased receipts
are more than offset by the heavy
expenses the Federal Government is
lncurring.
Cut After Election Possible.
It may be, Of course, that after the
election the New Deal will begin
sharply to curtail its outlay. To dimin-
ish the spending now it is feared might
interfere with the New Deals oppor-
tunity for victory in November. Once
that victory is achieved, however there
will be a sharp tapering of all along
the line. This will be compelled by
reason of the rapid rate of rise in the
public debt if not by the public senti-
ment for economy that probably will be
built up in the campaign itself.
Now the figures given in the above
paragraphs do not in any way include
the soldier bonus, which will not be
disbursed until after July /. AS for
the A. A. A. the Treasury always kept
processing tax collections ahead of
payments to farmers, and when the
A. A. A. was declared invalid, this sit
uation was reversed and it did cut
down on receipts. But, on the other
hand, the payments to farmers are
about the same as they were last year
and still the expenses of the Govern
ment as whole are higher than a
year ago.
fropvrJobt 1aoc,