Evening star., 1938-10-09
PEAK IN SPENDING
IS DUE BY APRIL
U. S. Plans Record Peace
Outlay of Nine Billion
This Fiscal Year.
BY tie Associated Press.

BY Tie Associated Press.
Federal statisticians yesterday chart
ed spring peak for the business
stimulation efforts Of the current
spending program.
BY January /, they said, most Of
the work producing projects should be
under way, and by April the maxi
mum pay rolls on Federal and Fed
orally financed projects should be at
tanned.
Not counting the multi-million dol
lar lending activities of the Recon-
struction Finance Corp, the Govern
ment proposes to spend $4,000, ,000,-
900 this fiscal year-the largest peace
time budget in history.
Actual disbursements so far since
July /, the beginning of the fiscal year,
amount to $2,398, ,51i 900, which was
$806 ,926, 900 in excess of income. From
July to October last year, expendi-
lures were $2,l00, ,553, 900 and the defi-
cit only 1853, ,l98,0o0 BY next June
80 the deficit for this year is scheduled
to reach $4,000, 100000.
w. p. A. Rolls at Peak.
Aside from the ordinary activities
of the Government, the bulk of the
huge budget this year is going into
w. P. A. pay rolls, P. w. A. projects
and naval construction.
w. P. A.. by spending $598. .495 900
in three months, has built its rolls
from 2,806 900 to a record high of
3,120,036 At this time last year the
relief rolls we're under 100000 and
the cost had been only 354, ,703, 900.
The w P. A. roll Is expected by
some authorities to rise gradually to
about 3,200, 900 during the winter and
slacken of in the spring when, they
say, the combined influence OF better
business and seasonal jobs should pro-
vide private employment for many
now on work relief.
Before w. p. A. spending starts ia
pering of, however, public works prof.
ects should be picking up momentum.
Already p. w. A. has allotted $l,337,-
186, 900 in loans and grants for 5,822
locally sponsored projects and $l92,-
593, 900 for 1,044 Federal projects. jan
uary is the deadline for starting con-
struction, but officials say ground al
ready has been broken on 1,1s4 prof.
ects to cost an eventual $3ll, ,778,000.
Shipyard Jobs Planned.
P.W. A. estimates one job on one Of
its projects creates two others in the
private industries which supply the
materials. and all through the winter
material orders are expected by ON
ciak to now in increasing volume to
stimulate private employment.
At the Navy. construction is more
nearly at an even year-around Level
now, but the admirals have plans
which are expected to increase EN-.
ployment both in shipyards and ma
terial factories after the first OF the
year.
On October 10, bids will be received
on three new battleships, whose total
cost has been estimated at $210, 0,000,-
900. Keels may not be laid for the
dreadnaughts for six months, but
naval spokesmen said the purchase OF
steel and other materials would pre-
cede keel-laying by at least three
months.
Altogether the Navy is spending
1904 600, 900 to build ships and air
planes this fiscal year.
Funds Flow to Industry.
More Federal funds are flowing to
industry through the Reconstruction
Finance Corporation, whose lending
recently was excluded from budget
bookkeeping because of new policy
by which the r. F. c. finances itself
through direct borrowing from the
public instead of obtaining funds
through the Treasury.
In July and August, the r. F. G.
authorized more than $3.50, ,00o,0 OF
loans, including about $3o,ooo,0oo of
industrial advances. September lend
ing has not yet been reported.