Evening star., 1937-09-28

haze similar effect uithout adding
any excessive burden.
BY the Associated Press.
The administration two chief fiscal
officers will urge President Roosevelt
to balance the budget in the next fiscal
year, informed officials said today.
even if it requires new and heavier
taxes.
These persons said Secretary Nor
genthau and Chairman Mariner S.
Eccles of the Federal Reserve Board
are convinced balance between in
come and spending is essential to
bolster business confidence and permit
pairing down of the s36,864 10000
public debt.
Although neither has commented on
the recent stock market decline, au-
thorities pictured both as believing this
drop probably resulted in part from
business uncertainty over the Govern
ment's future fiscal course.
Starts Conferences.
Morgenthau, seeking to eliminate the
red ink entries written on Federal
account books since 1881, already has
started a series Of conferences about
balancing the budget in 1938-1939.
At his press conference late yester-
day, he said I'VE are exploring every
avenue through which savings might
be effected" during the current fiscal
year.
The deficit stands now at s247,000-
600, compared with Mr.. Roosevelts
estimate of s4l8,000,000 for the entire
fiscal year. Treasury authorities said
they were hopeful the deficit could be
held under the Presidents estimate.
but expressed doubt it could be elimi-
mated entirely.
Morgenthau, 1t was said, will give
the Chief Executive up-to-t minute
financial estimates for both this year
and next Immediately after Mr.. Roose-
velt's return from the West.
May Ask Heavier Taxes.
If the Treasury Secretary's survey
OF this years fiscal picture shows that
a budget balance cannot be attained
without higher taxes. officials said, he
will recommend that heavier levies be
provided.
The Treasury is making a thorough
survey of the entire tax structure.
Authorities said that after a basic
program is laid down it will be rela-
lively simple to fix tax rates which
would close the spread between re-
ceipts and spending.
Although these persons asserted
heavier taxes naturally might be
greeted without congressional enthu-
slasm during campaign year, they
said expanding business activities
should make increased taxes less bur-
densome.
Before urging additional levies. how
ever, officials said Morgenthau would
make every effort to pull down ex-
pendltures to the level of receipts.
Whether this can be accomplished.
they asserted, will depend in large
measure on congressional outlays for
crop control and other activities.
On the Reserve Board side of the
picture, Eccles was said to believe some
provision should be made to curtail
the Government debt, now near an all
time high.
He consistently has advocated the
retirement of debt in recovery periods
IN order that it may be expanded
rapidly to meet emergency expendi-
lures in depressions.
Recently the Reserve Board has
taken several steps to keep interest
rates low,'and these have operated in
directly to bolster the Government
bond market.
| Officials said that if the budget was
balanced, the market for Government
Obligations, as well as other securities
probably would become more stable.
eliminating the desirability of many
credit control operations.
Morgenthau is expected to survey
the general financial and credit sit
uation at a meeting tomorrow with
the Reserve Boards open market COM
mittee, which directs reserve banks
policies in buying and selling Govern
ment securities.
Borrowing Plans.
The Treasury chief may outline at
that time borrowing plans for the rest
of this year and go over the possibili-
ties of a balanced budget in 1938-3e.
A revised budget for this year will
be issued shortly after Mr.. Roosevelt,s
return to Washington, and the Budget
Bureau will begin preparation of the
l938-39 budget Immediately thereafter.
In preliminary budget hearings.
nfE io1- Izo
estimates be whitfield to the minimum
consistent with efficient departmental
operation.
If departments do not agree to re-
ductions in requests considered over
large, officials said, Morgenthau and
Daniel w. Bell, acting budget direc-
tor, may ask Mr.. Roosevelt to order
curtailments.