Evening star., 1937-01-08


strongly recommend that Congress en-
act during the present session the
necessary legislation to establish the
corps as . permanent agency of the
Government"
Although the estimates for 1898 sub
mitted today do not mention the c.
c. c., funds for the corps. probably
amounting to 5000, 900, 900 to be used
in 1898 are included in the item en-
titled supplemental items" Of $780,
000. 900.
No new money Is included in the
estimates for 1888 for the Public
Works Administration. However. an
estimate of $4,000, 900 or $4,000, 900
less than the amount provided for
1887 is asked for the administrat ton
OF the p. w. A. The amount allowed
provides for q liquidation program
starting July /, 1887. Unless there
should be some statutory measure en-
acted extending the life Of the P. w. A.
that emergency agency seems bound
to fade out OF the picture. There are
about 5000 900, 900 Of $500, 900 900
fund appropriated by Congress at its
last session from which money may
still be allocated for P. w. A. projects.
The President. however, Is trying not
to allocate P. w. A. money except
where it may be used to take men of
relief rolls.
The President in his 1888 estimates
included $8l2.22S.000 for social secur-
ity grants and for the Governments
contribution to the old-age reserve
account. more than double the ex-
penditures for these purposes in 1887.
For several years still further increases
in these requirements will develop.
These expenditures. however, will be
offset to a large extent by the lncreas-
ing revenues under the social security
act. These revenues during 1898, the
first full year OF tax collections under
the social security act will result in
revenue of sta SOC, 900. which is $780,
zoo. 900 greater than the anticipated
revenue In 1897, when collections will
be for only six months.
Fay-1s- QUITO f12n.
While no mention of it was made
in the budget message. 1t is the pur-
pose Of the administration to amend
the social security act so that it will
operate to q greater degree on a pay
as-you-go plan without the necessity
of building up forty or fifty billion
dollar reserve.
The President included In his budget
message not only his estimates of re-
ceipts and expenditures for the fiscal
year 1888. but also a review of the
fiscal years 1886 and 1887.
The huge deficit at the end Of the
fiscal year 1885. amounting to more
than $3.50. 900, 900, was due to the
fact that the Supreme Court, in hold
ing the A. A. A. and the Guffey Coal
Acts unconstitutional, lost TO the Gov
ernment s457 900 900 in revenue. and
the payment Of the soldiers bonus.
amounting to sl,673, ,493, 900 had not
been estimated for.
The income of the Federal Govern
ment during the fiscal year 1887 will
increase sharply over 1896. This will
amount to sl.712,194, 900 over the act
ual receipts for the fiscal year 1896,
and at the same time will be an in
crease OF sl73,s33, 900 over the esti-
mates contained in the 1887 budget
submitted q year ago.
The amounts for recovery and re-
lief expenditures will run consider
ably higher than the original esti-
mates About 165.000.00o was used
for assistance to individuals and COM
munities directly or indirectly affected
by the widespread drought conditions
prevailing during the past Summer
The gross public debt at the end
Of the current fiscal year is esti-
mated at $35,o26, ,0oo, 900. an increase
over 1885 of $1,24s, 600, 600. The esti-
mated debt at the end of the fiscal
year is based on contemplated ex-
penditures set out in the budget and
does not take into account any change
which may occur as a result OF the
Treasury policy in holding as "in-
active" future acquisitions of gold.
A year ago the President stated
As q general policy that the Federal
Government should expend about
$500, 100000 year in public works
During the present fiscal year. about
$500, 100000 will have been used for
this purpose, and In the next fiscal
year. it is estimated that approx
mately s450,00o.0o0 will be so used.
Highway System Large.
One Of the largest items in the
Public Works Program Is for high
WAYS. Rivers and harbors improve
ments is another item.
As in his message to Congress on
the state Of the Union delivered
Wednesday, the President in his
budget message declared that he
would submit q plan for the reor-
ganization Of the executive branch Of
the Government.
II propose shortly" he said in his
budget message. Ito submit to the
Congress Q broad plan for placing the
executive branch Of the Government
on . sounder and more responsible
basis Of management. The carrying
out Of such a plan will undoubtedly
result in some saving of expenditures:
but 1t must be remembered that what
Is generally known as overhead rep
resents only q small fraction of total
expenditures in any large business,
government, or private"
In this connection the President
said that all expenditures must be
planned with q view to the national
need. and no expansion of government
activities should be authorized unless
the necessity has been definitely de-
termined and funds are available. He
added that if new legislation imposes
any substantial increase in expendi-
lures either In, expansion of existing,
or the creation Of new activities, 1t
becomes a matter Of sound policy
simultaneously to provide new revenue
suf1icient to meet the additional cost.
A recapitulation Of funds appro-
priated and allocated for recovery and
relief up to October 81. 1895, during