The Waterbury Democrat., 1937-10-19
By LYLE c. WILSON


 washington, oct. 19-(UP)-Pres- ident Roosevelt abandoned hope Of Q layman's balanced budget in this fiscal year today but presented the alternatives of quick economy or higher taxes to bring expenditures within revenue. MT, Roosevelt's October budget report confronted the nation with It's eighth consecutive deficit and point cd the public debt toward 6 new 4ST,000, ,000,00 high. MT. Roosevelt acknowledged that the treasury's gold sterilization pol icy. probably would force the public debt considerably beyond the $37,- llD,868,732 figure indicated in this budget summation. But sterilized gold is rated a prime asset and avail able always to reduce the debt at It's face value. Mir. Roosevelts reference to gold was interpreted to mean that the treasury would continue to buy all metal offered here at New Deal prices.
 Gross Deficit Estimate
 Trimming revenue estimates and increasing his spending schedule MT. Roosevelt looked to a gross de- dicit of $895, PAS, ,00U on June 90, 1888 at the close of this fiscal year. He estimated the second largest federal income in treasury records.
 The net deficit, excluding $200,- 100000 for statutory debt retirement, will be $695 5,245,o ,o00.
 Revised budget estimates were made public here last night as MT. Roosevelt, in community chest speech from Hyde Park, N, r., was saying:
 we all agree that unless federal taxes are to be greatly increased, the expenditures have to be brought within the existing tax receipts"
 An Economy storm
 The two presidential statements arc expected to arouse an economy storm in the extraordinary session of congress which will convene Nov. IS. They appeared in the midst of the most ominous stock market slump since the New Deal took command.
 Congress might, however, expand the spending program and further unbalance the budget. Mir. Roosevelt scheduled $l80,000,000 for Supple mental items"-to cover overspend- ing in some categories and possibly additional expenditures ordered by congress. One such likely item was loans on this years corn crop.
 Budget Summation
 Tn his budget summation and re- vision of more optimistic January and April estimates, MT. Roosevelt reported last night:
 1. Revenue for this fiscal year ending June 30, 1888, will be $6,660,- 4i0,000, second largest in treasury records.
 2. Expenditures will total $7,545,- 65S,000, Q decrease from peaks of thS 1886 and lo37 fiscal years.
 \. Disappointing tax revenue and congressional appropriations beyond budgeted levels upset calculations and are largely responsible for the unexpectedly large deficit.
 Mr. Roosevelt revaled that treas- ury experts over estimated 1888 fiscal year tax receipts by $64S, 100000 in last January's budget and by $256,- 100000 when those figures were re- vised In April.
 He announced the imminent liqui- dalton of the Reconstruction Finance corporation and the Public Works Administration.
 Neither emergency agency will be permitted to make further loans or further commitments. Both agen- cieS, however, are free to discharge all existing commitments.
 Budget Tables
 MT. RooseVelt's latest budget ta- bles are not in all respects directly comparable to similar tables com piled by the treasury in January and April. But comparison of Jan- uary, April and current estimates reflects the changes in treasury fiscal outlook in the past nine months.
 sla.