Evening star., 1937-11-27
FARM BILL VETO
SH|NTED UNLESS
FUND |SPROV|DED
President Makes an Implied
Threat if Plan Isn't PAY.
aS-Y0u-Go."
BALANCED BUDGET
SEEN AIM IN WARNING
Congress Urged to Keep Cost of
Program Within $500, 100000
in Letter to Barkley.
BACKGROUND

BACKGROUND
Varying estimates on cost OF neu
farm program haze figured in Sem
ate debate, some Agriculture Com
mittee members insisting it ,Dil not
increase current $500, 1000, 900 an
nual farm program expenditures,
1Dhtle Others contend it toill increase
costs by from $4,000, 900 up,Dard.
The Senate bill has no repenue-
raising provisions.
An implied threat to veto the farm
bill or any other legislation not en-
acted by Congress on a "pay-as.you-
60 basis" was seen today in q state
ment issued at the White House after
President Roosevelt had sent a letter
outlining his views on the farm bill
to Majority Leader Barkley of the
Senate.
However, it was not indicated that
the farm legislation itself would have
to carry taxes for the expenditures.
Congressional leaders have decided
tentatively that any necessary addi-
tional revenue should be provided in
a separate tax measure originated by
the House Ways and Means Com
mittee.
The White House statement, made
by Stephen T. Early, presidential Sec
retary. asserted pending legislation Is
Every likely" to meet the dsapproval
of the President if any unanticipated
drain on the Treasury is involved.
Keep Cost Under $500 900, 900.
In his letter to Senator Barkley, Mr.
Roosevelt suggested that the cost OF
the farm bill be kept within $500, ,OOO,-
900. He also wrote that he had noted
discussion in the Senate with refer
ence to the possible cost of the meas
ure. The gist OF these discussions has
been that the ultimate cost of farm
legislation cannot be determined at
this time, but may run from s150, ,00O,-
900 to 5000, ,000, 900 in excess of the
$500, ,0O0, 900 goal set by administration
leaders
Funds are available to meet the
cost Of $500,000. 900, but the Senate
bill makes no provisions for raising
revenue should the ultimate outlay
exceed that figure. Should this be
the case, however. other legislation
might be enacted to defray the addi-
tional expense.
Calling reporters to his Office. Mr.
Early informed them the President
had written the letter to the majority
leader and said he had a statement
to make in connection with that let
ter. The substance Of his statement
was that any enlarged measure carry
ing appropriations for which Con-
gress does not provide for a sum to
come into the Treasury equal to the
sum outgoing is very likely to meet
presidential disapproval.
In his letter to Senator Barley, the
President wrote:
1T is obvious that a constant in.
crease Of expenditures without ar
equally constant increase in revenue
can only result In q continuation o1
deficits.
VIC CdA 1lOt AlOpc " COAlIA1IuC Oll q
sound basis Of financial management,
Of Government affairs unless the reg.
ular annual expenditures are brought
within the revenues.
Il feel that every effort should be
made to keep the new farm program
within the present (appropriation)
limit of $500, 0,000,0 900 per annum."
Revenue Boost Needed.
II this is found impossible, Mr.
Roosevelt said, Il then urge that steps
be taken to provide the necessary in
crease in revenue to meet any. expendi-
lures under the new farm program il
excess of this sum-"
The President directed attention tt
Senate debate in which Chairman
Smith Of the Senate Agriculture Com.
mittee had stated that total o1
$625 900 900 was available for the
farm program. Mr.. Roosevelt sale
that while $625, 900, 900 had been ap.
(See FARM, Page A-13)