The daily independent., 1937-04-21

900 tor the fiscal year Cndlng Gil
June 80. 1898.
Q. What is a deficit? A. The
amount by which expenses exceed
income.
Q. What is a net deficit? A. The
amount by which the national
debt is actually increased by new
borrowing. The gross deficit in
clues money used to retire part of
that debt, and is estimated at
$8l9.000,000 for the 1888 fiscal
year,
Q. Does the President think it
is all right to continue spending
more than government income?
A. No. He said Il regard it as ex-
tre,nely important that we should
achieve 4 balance of actual in
come and outgU for the fiscal year
1858"
Q. Does he think this can be
done despite present indications of
another deficit? A. He promised to
tly 10 do it in two ways: To
Withhold from actual spending a
substantial percentage" Of funds
appropriated: 2-To increase
treasury receipts by iquidating
she assets CT some emergency
lgCn,i-".
Q. Does he plan new taxes to
increase the revenue? A. Not a.
this session of congress. but he
said the treasury would be ready
next year to make suggestions
fer such new or additional taxes
as may be necessary
Q. Has there been any change
in the governments financial sit
la,ion since the presidents bud
get message Of last January? A.
Yes. At that time he forecast
balanced budget for the 1888 fiS-
cal year except for S4Ol 100000
Gebt retirement.
Q. What happened to upset his
ca Gu ations? a. The preSiden;
said tine principal factor is the
dec inc IN tax receipts bc,ow ou
pr viouS expectation -.
Q. How much are tax receipts
off? A. Indications are that in
come taxes will produce $267, ,200,-
900 less for the current fiscal yC3r
than expected. and that other
rev -nues will be S3370OO.OOO less
than expected.
Q. What are the prospects re-
garding revenue in The next fiscal
year? A. The pre- id,nt estimated
today It will total S6.906 0OO,00C
or S3S7.OOO,O0O less than antici-
pated in Jar,lary.
Q. Will the indicated S604.200,-
900 tax deficiency for this fiscal
year increase the estimated def
cit by that much? A No. The pres
ident expects 10 cut S295000,G0o
from estimated expenditures. re-
Sulting in a net deficltinS OF
S2.557,OOO,OOO. only S309,0OO,OO0
above his January estimate.
Q. I. it unusual for tax receipts
to fall below estimates? A. Yes
The treasury estimates have beer
constantly close TO the actual re-
ceiptS.
q. Wha. is the explanation 70.
the wrong guess this year? A. Of
fetal had counted on businySs
recovery and the new levy on un-
distributed corporation profits L
increase income tax receipts more
than they did. Mr. Roosevelt Salu
The deficiency in other revenues is
due IN large part to the obstruc-
ton of collections by numerous
lawsuit against the governmlnt.
@. What sort OF lawsuits Ula Ii.
refer to? One i The Corr. Gv 10.
that has impCundel about SLO0,-
100000 in raj road ycnSlcn t","
@. Is th-re a chance GOr -
budget tC be thrown iurth-E OK
Of balance than the rlCsldcn ~.
Cs ina IS? \. Y.S He aid Ms c
Inmates ar2 bI-ej en- TWO hi"
important conditions: / tn.
extend tac s3-cal,Cd II
sance" taxe3 due 10 expire III
year. and; 2-hoid appropriate"
within budget provi ions.
Q. Wha. did the president roc
Onmend regarding relief? A. II,
asked congress 20 provide sl,50O,-
100000 to finance w0rE-reiict dur
ing the next fiscal year.
Q. Did the changed financia:
situation affect his relief recon-
menda ion? A. Apparently not. He
resisted demands OF some con-
gresSional leader that the fund
be cut to 1.OO0.OOO.GOO.
~ nT