Evening star., 1937-01-08

taxes which will not only make up the
loss In revenue due to the Supreme
Court decisions inValidating the taxes
levied under the agricultural adjust
ment and the bituminous coal acts.
but will produce additional income Of
approximately $l74.000.0 900.
Since the revenue act of 1895 mate.
rally changes the tax structure. the
individual items Of revenue as con-
tanned in the original 1887 budget will
not be exactly comparable with the
individual items in the 1887 budget as
revised in this message.
Income Taxes Expected
To Rise S946, ,325, 900.
Income taxes are expected to yield
$2.372 ,900,0 900, or $946, 1875 900 more
than was received from this source
last year: miscellaneous internal rev.
enue, S2.274, ,968. 900. an increase Of
$265 1886, 900; customs duties. $446,-
800. 900. an increase OF $50 9,988. 900:
and realization upon assets, $3l $780,
600, an increase of $26 ,362, 900. In ad-
dition, it is expected that the new tax
on unjust enrichment provided by the
revenue act of 1885 will amount to
$82 900 600 and that the tax on car
riers and their employees will be 1884,
$50 900, including $33 900 900 deferred
from the previous fiscal year. The col
lection Of taxes levied under the social
security act will begin in the last half
OF the fiscal year 1897. and it is ex-
pected that these taxes will produce
additional revenue in the amount Of
1924 500, 900.
The only item Of revenue showing
any decrease is that of miscellaneous
receipts, in the amount Of $50, 1926, 900,
which Is due to reductions in interest
payments made to the Treasury by the
Reconstruction Finance Corp.
Erpenditures-From present indi-
cations expenditures for the fiscal year
1897 exclusive of expenditures from
postal revenues) will amount to
$3.50, ,804, 900. Exclusive Of statutory
debt retirement and adjusted compen-
sation payments. the total expendi-
lures will amount to s7,5l2,77 900, an
increase over comparable expenditures
for 1896 Of $709, ia 900.
This amount is made up Of increases
OF $37l 1872 900 on account of the social
security act. $85, SOB 900 on account Of
interest on the public debt, $l94 .16l 900
for the general public works program.
1928 ,442 900 for national defense and
1901 OLA mn for otbar n,,rvoeas. soS
decreases OF $93, 1921 900 for the Vet
erans' Administration. s74.996 900 for
the agricultural adjustment program
and $l18,28l 900 for the Civilian Con-
Servation Corps.
Current Estimates
Show Big Deficit.
The amount OF the recovery and re-
lief expenditures has been estimated
at $2,l66 6l57 900, but there is included
IN the supplemental expenditure items
$3.50, 900, 600 from an appropriation of
$3.50 100000 to be requested OF Con-
gress for the purpose OF CARRYING the
Works Progress Administration and
related programs from February / to
June 80, 1887. This will increase the
estimated expenditures for recovery
and relief to s2,8l6,157.O an in
crease of 39,36l 900 over 1896. The
expenditures in the current fiscal year
will include. however. the sum of about
Sl65 900 600 for assistance given to in
dividuals and communities directly or
indirectly affected by the widespread d
drought conditions prevailing during
the past Summer. II this drought had
not occurred, the net cost of recovery
and relief for the current fiscal year
would have been about sl25 900 900
below the cost for the previous fiscal
year.
Deficit and public debt.-The cur
rent estimates for the fiscal year 1887
show . gross deficit of s2,652. 1854 900.
Deducting public debt retirements, the
net deficit will be s2.248. l2s. 900.
The increase In the public debt on
account Of the deficit, however, will
be only s1,34S,0O0, 900 since it is an
ticipated that 5000, ,000, 900 of the def
cit will be financed from cash on
hand. The working balance will be
further reduced by net expenditures
Of about s42 900 900 for trust accounts
and $l00, ,000, 900 for the retirement of
national bank notes now a part of the
public debt. This will reduce the
working balance from S2.225. 900 900
on June 80. 1896, to Sl,183, 900 900 on
June 80. 1887. The gross public debt
at the end of the current fiscal year
is estimated at $35, ,O26 900, 900. an in
crease over 1886 Of $1,248, ,000, 900.
Gold Acquisitions
Not Accounted For.
The estimated debt at the end OF
the fiscal year is based on contem-
plated expenditures set out In this
budget and does not take into account
any change which may occur as
result Of the Treasury policy in hold
ing as inactive" future acquisitions
Of gold.
Fiscal Program for 1898.
The expected increase in revenue
and decrease in expenditures for relief
both reflect the general improvement
which has taken place in the economic
conditions of the country. The reve-
nue. act Of 1896, which was designed
for the purpose of replacing revenue
lost through the invalidation of
processing taxes, of providing suffi-
cient revenue to amortize the cost of
the adjusted compensation payments.
and OF equalizing tax burdens, gives
every indication Of satisfactorily ac-
complishing those purposes. I should
like, at this point. to emphasize the
Importance Of maintaining the pro-
ductiveness Of the present tax struc-
ture. SO that we may properly provide
for the fulfillment of our fiscal pro-
gram.
Under legislation enacted during
the last session Of Congress, which
created authorizations for future ap-
propriations aggregating more than
$l,S00, ,000, 900. there Is included about
$3.50 100000 in the estimates of ap-
preparations contained in this budget