Evening star., 1937-04-10
us. SPEND|NGCU
FOUND NECESSARY
Roosevelt's Message Next
Week to Revamp Budget
Forecasts,
BACKGROUND

BACKGROUND
Holding key to budget situation
OF coming year Is amount OF
Federal funds finally deemed neces-
sary for administration OF unens-
ployn1ent relief.
Congress, betUeen fires OF or
0dnized local groups such as
Mayors and Governors .Dho want
increased Federal aid and the
oro,Din0 t,,ststence from other
quarters for curtailed expenditures,
IS aWditing presidential message
NTH recommendations.
Latest figures shoU nearly 1O,-
100000 PERSONS still WITHOUT en-
ploynent.
By the Associated Press.
Fiscal authorities said today sub
stantial reductions in expenditure
estimates probably would be necessary
II the administration il to achieve an
approximate balance between income
and outgo in the 1898 fiscal year.
President Roosevelt viii revamp
budget forecasts in message to
Congress next week, taking into ac-
count drop in this years revenues
under estimates.
Relief outlays-heart OF the contro-
versy over whether the budget can
be balanced-were discussed at q con-
ference between Mr.. Roosevelt and
Governors and other representatives
OF six States late yesterday.
Relief Cut Resisted.
officials reported the group sought
to prevent = sharp cut in relief rolls
this fiscal year. After the conference,
however, there were reports the Pres
ident indicated the Federal financial
set-up necessitated q scaling down OF
Works Progress Administration rolls.
In his revised budget estimates, the
President is expected to whittle esti-
mates Of both revenues and expend-
itures for this fiscal year. Necessary
spending between now and next July
l will require additional Treasury bor-
rowing, Secretary Morgenthau has an
nounced. This is expected to aggre-
gate about $500, 100000.
There Is widespread speculation
however, over whether the seven-year
gap between receipts and expenditures
may be closed IN the next fiscal year
In his January budget Mr.. Roose-
welt said that exclusive of debt retire.
ment the 1888 budget would be bal
anced If relief outlays do not exceed
1887, 900, 900.
Receipts for 1878 were estimated
at that time at 1928 100000. If the
present revenue trend continues next
year, actual taE collections might
drop 10 to Is per cent below this fig
ure. A corresponding cut in outlays
would be necessary to match expend-
itures with income.
The only alternatives to a slash in
expenditures are continuance of Gov
ernment borrowing or the imposition
OF new taxes. Opposition to both has
been expressed in high administration
and congressional quarters.
Senator Robinson Of Arkansas, The
Democratic leader, said this week thai
suggested new Government activities
may be financed by reducing relic,
rather than by lifting present ia,
rates.
Mariner s. Eccles, chairman of The
Federal Reserve Board, has declared
the Government must get out Of the
red as step toward checking q posi-.
BILE runaway imitation. Eccles called .
balanced budget desirable even il
higher taxes were necessary.
Relief Key to Balancing.
In recating next years expenditure
estimates President Roosevelt is ex.
pected to provide for continuance Of
an expanded national defense program
already under way. Spending for re.
lief probably will hold the key tt
whether the budget will he balanced.
After yesterdays White House con.
ference, w. P. A. Administrator Hop.
kins, who attended, said the Stat,
spokesmen sought continuance OF worl
relief at the existing scale Of 1900 ,00t
workers. Under plans previously an.
nounced this figure would be cut t,
100000 by June /.
Attending the conference were Cows
Herbert H. Lehman Of New York
Philip r. La Toilette of Wisconsin
Elmer A. Benson of Minnesota ant
Robert E. Quinn of Rhode Island
Representative Mccormack Demo
crat, OF Massachusetts,, and Leo M
Lyons, Illinois relief administrator
also were present.