Evening star., 1937-10-19
Budget
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Continued From First Page.)
them at se,65o,o 100000, drop OF
e643, 100000.
He made no attempt to explain the
difference except to say 1t was more
than accounted for by the reduction
In the estimate of income and social
security taxes"
Stock Market Blamed.
Noting that these two items are
primarily dependent on business con-
ditions, some tax authorities blamed
the lowered estimates on the stock
market drop and evidences of lessened
industrial activity in some fields.
The Presidents budget statement
was primarily factual comparison of
the revised budget with the figures he
submitted to Congress in April and
with last years budget.
He explained that the prospective
deficit had jumped from S418,000.O00
in April TO net of $685., 900, 900
because of increased expenditures
voted by Congress since that time and
because of drop in the estimated
revenue since then of S256,000,00
He noted increased expenditures of
e344 10000 but balanced against
them savings under other items" of
S323000,000 The savings we're listed
as $115, 100000 from a re-examination
Of the old-age reserve fund, and econ
omies Of s2O8,O0O,oOO effected by
administrative action In curtailing
other classes Of expenditures.
UnpredictabIe Expenditures.
He listed specifically these unpre-
dictable expenditures as having arisen
since the April estimate: Increases
under the new railroad retirement act,
continuation Of reduced interest rates
on Federal Land Bank loans, unem-
ployment tax refunds under the social
security act, extension of the P. w. A.
for two years and cotton loans.
Turning to comparison of this
years revised figures with last years
budget, the President presented a more
cheerful outlook.
Despite the lower estimates of rev.
enues, he said these receipts would
amount to S1,357.o0o,o00 more than
last years. He estimated expenditures
at $656000,000 less than 1887, with
the biggest cut in recovery and relief
spending.
"The estimated expenditures under
the recovery and relief program will
be s1.139, 100000 less than in 1887"
the President said This amount
represents reductions in expenditures
of $621, 100000 for the Works Progress
Administration, 1913 100000 for emer-
gency public works, SS5.00o,000 for
Resettlement Administration and $780,
100000 for other. purposes"
Increases Itemized.
General expenditures were estimS ted
at S156,000,000 more than in 1887,
despite the retrenchment program.
He itemized the increases as $63,00O,-
900 for highways, 100000 for the
Maritime Commission, s69,O00,0O0 for
national defense, $67,0O0,O00 under the
social security act and 59,000,000 for
interest on the public debt.
Against these increases were esti-
mated savings of $4,000 600 in oper-
ating the Civilian Conservation Corps,
$59,000,000 under the agricultural
adjustment program and s7,O0o,0o0 in
incidentals.
Although Mr.. Roosevelt estimated a
total reduction in spending of $685.
100000, the statement showed that
only $1o0,000,0O0 of this represented
an actual curtailment of Government
operations, because last years figure
included $556,000,000 for the soldiers
bonus.
The President made no estimate OF
the ultimate savings from curtailing
r. F. C.'s activities. But he an
nounced he was ordering the impound-
ing of more than $100,000,000 OF
unallocated P. w. A. funds, leaving
the Works Administration only enough
funds to carry out the program that
already has been approved.