Evening star., 1937-04-20
TEXT OF PRESIDENTS RELIEF MESSAG
To the Congress Of the
United States.


work relief for the fiscal year 1888.
In connection with this estimate
1t IL desirable to review our pres
ent fiscal situation.
Budget estimates made last De-
cember indicated a net deficit for
the current fiscal year Of $2,248,-
100000. They also indicated net
surplus for the fiscal year 1888
OF $l,537 100000, exclusive Of any
provision for a work relief appro-
priation. On the basis of these
estimates, therefore, an appropria-
tion for work relief for the fiscal
year 1898 Of any sum less that ST.
537,00O,000 would have left at the
end Of that year budget in bal
ance.
Since then, however, new factors
have so altered the fiscal situa-
ton as to make 1t necessary to pre-
sent revised estimates of receipts
and expenditures. There Is at
tached to this message q state
h. ment showing the present estimates
for the fiscal years 1887 and 1888
as compared with the estimates IN
my budget message. A glance at
this statement will show that the
principal factor is the decline in
tax receipts below our previous
expectations.
Fiscal Year 1887.
The analysis of returns received
In March, 1887, under the new tax
law indicates that income taxes
will produce $267 100000 less than
the former estimate for the fiscal
year 1887. The receipts for the
first nine months of this fiscal year
indicate that other revenues will
be S337,O00,O00 less than the estl-
mate, which is due in large part
to the obstruction of collections by
numerous lawsuits against the Gov
ernment.
In view of the reduction in reve-
nue. it became apparent that every
effort should be made to offset this
loss as far as possible by a reduc-
ton in expenditures. To this end
I have directed the heads OF va
rious Government activities to
make a careful examination of their
expenditure requirements for the
last three months of the present
fiscal year with view to making
substantial savings by eliminating
or deferring all expenditures not
absolutely necessary during this
period, the money so saved to re-
vert to the Treasury. Information
thus far available indicates that
the 1887 expenditures will prob
ably be S295, 900, 900 below the esti-
mate Of last January.
The amount of the net deficit for
the fiscal year 1887 is therefore
estimated at s2,557 900, 900, an in
crease of 5000, 100000 over the
January estimate.
Fiscal Year 1888.
For the fiscal year 1898 it is now
believed that receipts will be $751;
100000 less than was anticipated
last January, the reduction of
s41o,oo0,OOo in the estimate OF in
come taxes being slightly offset by
increases in other receipts.
Pending the enactment of the
1888 appropriation bills it has been
impossible to make any material
revision of the estimates OF expendl-
lures for that fiscal year, other
than for recovery and relief.
The revised estimates OF receipts
and expenditures for the fiscal year
1898 as here presented indicate an
estimated net deficit OF $418,00o,-
900. There is included in the esti-
mates of expenditures the $780,
100000 for work relief hereinafter
recommended.
I propose to use every means at
my command to eliminate this
deficit during the coming fiscal
wear. I expect to accomplish this
by taking definite action at the be-
ginning of the next fiscal year Cd
to withhold from apportionment
for expenditure in so far as possible
with due regard to proper function
ing OF the executive departments
and agencies a substantial percent
age of the funds available for that
year, and (2) to increase the re-
ceipts Of the Treasury through the
liquidation Of assets Of certain OF
the emergency agencies.
I regard it as extremely impor-
tant that we should achieve bal
ence of actual income and outgo
for the fiscal year 1888, and ap-
peal TO you to join me in q deter
mined effort to bring about that re-
suit.
What I have said Is predicated
on two highly important conditions.
The first is the extension Of exist
ing taxes which expire this year.
The second is the maintenance Of
appropriations made at this ses-
sion within the total OF the budget
estimates. An increase in appro-
priations would, Of course, nullify
our efforts to prevent a deficit in
1898.
And while I recognize many op-
portunities to improve social and
economic conditions Through Fed
eral action, I am convinced that
the success Of our whole program
and the permanent security Of our
people demand that we adjust all
expenditures within the limits Of
my budget estimate.
Future Fiscal Policy.
emphasize here what said last
January with respect to our future
fiscal policy:
Expenditures must be planned
with = view to the national needs,
and no expansion Of Government
activities should be authorized un-
less the necessity for such expan-
sion has been definitely determined
and funds are available to defray
the cost. In other words, if new
legislation imposes any substantial
increase in expenditures either in
the expansion Of existing or the
creation Of new activities, it be-
comes a matter of sound policy ST.
multaneously to provide new rev.
enue sufficient to meet the addi-