Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-15
j. s. TO BEGIN NEW
S5O,OD0,0(ID SERIES
OF BILLS MONDAY
Weekly Borrowings Neces-
sary to Plug Income
and 0utgo Gap.
PROCEDURE is IN LINE
WITH TREASURY POLICY
Morgenthau Would Keep Work
ing Balance, Now 1888, 100000,
Close to Billion,
BACKGPNTND

BACKGROUND
Necessity for revision of fiscal
plans became eUident after tar reU-
enueS teU short OF expectations
With budget prospects still hingino
on relief requirements, Federal
Government has started tiqhtenino
purse strings First Increment to-
Dard curtailment of expenditures
~as furloughtng OF $50 workers,
effective May 1.
Mayors and Governors. mean
Uhtle, are ererting great pressure
to haze Congress Uote more than
$500, 100000 tentatively indicated
Jor relief IN early estimates OF Fed
eral appropriations.
BY the Associated Press.
Secretary Morgenthau said today
the Treasury would start a new series
OF s50o00,000 weekly bill issues Nom
day to replenish the Federal cash box.
With tax revenues dropping behind
estimates, the borrowing will be neces-
sary to plug the gap between income
ard outgo.
The Treasury's cash working ball
ance now stands at s858,00O,O0O. In
the past, Morgenthau has said he
hopes to keep this close to $1,000.
100000
The Secretary declined to tell his
press conference how much the bor-
rowing would aggregate.
He said the discount bills, which will
be in addition to the regular $50
100000 weekly offering to meet ma
turtles, will be due in id-September.
Asked whether his decision to issue
bills was prompted by the possibility
OF stiffening interest rates on long,
term obligations, The Treasury chief
replied:
Il think bills are a proper way to
raise money at this time"
In Line With Policy.
He added the procedure was in line
with the Treasury's policy of issuing
long-term securities only on quarter
dates.
President Roosevelt's revised budget
hgures and his relief message prob.
ably will be ready to submit to Con.
gress about the middle of next week,
1t was indicated, meanwhile, at the
White House.
The President had hoped to have
the message and figures ready to
transmit to Capitol Hill by Monday,
out the Treasury and the Budget Bu-
real Will not complete their figuring
IN time for him to get the material
ready before Wednesday or Thursday.
preliminary to the writing of the
message, which he hopes to begin over
the week end, President Roosevelt
will confer late today with Treasury
Secretary Morgenthau and Budget
Director Daniel Bell.
Meantime, the President is await.
Ing the response of department and
agency heads to his letter ordering
them to slash their expenditures for
the remainder of the fiscal year be-
cause of the likelihood of a deficit far
greater than was anticipated. He ex-
planned in the letter that the income
will not be as large as was originally
estimated and that the expenditures
haxe exceeded the early estimates.
Rail Pension Plan.
Discussing the controversy over a
new railroad pension plan, Morgen-
thau said this lis up to Congress now"
A voluntary retirement plan drafted
by rail management and labor drew
Treasury objections that its taxes were
not high enough to meet benefit pay
ments.
Morgenthau said a group Of actu-
aries had made two suggestions about
financing the plan, and he had agreed
to both.
He declined to discuss the position
of rail management and labor, but it
was indicated they had disagreed.
Morgenthau said the Treasury was
in agreement about the program with
Chairman Harrison of the Senate
Finance Committee and Chairman
Doughton of the House Ways and
Means Committee.