Evening star., 1938-01-05
$539,0oO,OoO Cut in
Expenses Over
'38 Expected.
MORE SPENDING
MAY BE DONE
Total Debt to Hit
S388,528,OO
New High.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
President Roosevelt sent to Congress
today Federal budget estimating ex-
penditures of $500 900 900. and rev.
enues of s5,el9,4oo, ,oo0 for the fiscal
year 1899.
This means an estimated deficit Of
$e4s 500 900.
However, the budget also shows a
reduction of s539.0OO,0Oo in the esti-
mated expenditures for the fiscal year
1889, as compared to the estimated
expenditures during the current fiscal
year Of 1888. which total S7.40s,-
100000.
While commenting favorably on this
reduction in expenditures for the next
fiscal year, the President said: This
estimated reduction may by force of
circumstances, become smaller because
Of future events, which today cannot
be definitely foretold. I refer specif-
ically to the possibility that. due to
world conditions over which this Ma
ton has no control. may find it
necessary to request additional appro-
priations for national defense.
Aid May Raise Deficit.
Furthermore, the economic situa-
tion may not improve--and if it does
not, expect the approval of Congress
and the public for additional appro-
priations, if they become necessary to
save thousands of American families
from dire need"
It is obvious that if the estimated
reduction in expenditures becomes
smaller the estimated deficit for the
next fiscal year will become larger
The deficit now estimated by the
President is less than the estimated
deficit for the fiscal year ending June
30, 1888, which is now expected to
reach a total of s1.O8s, 100000.
In fact, the deficit for 1899, unless
something happens, as suggested by
the President, to increase expendi-
lures, is reduction for the third sue
cessive year in the matter of deficit
Had it not been for the payment of
the soldiers bonus during the fiscal
year 1886, the reduction in deficit
would have been successive for five
years, from and including 1884. The
deficit in that fiscal year was $685.
600 1000. and was only exceeded by the
deficit for the fiscal year 1886, which
rose to s4,36o, 100000.
Budget Balancing Hope Fades.
All hope of balanced budget for
dent expected during 1897 has gone
aglimmering The President in his
message gave number of reasons for
his inability to achieve balanced
budget in the coming fiscal year. He
said that during the first 10 months
of the calendar year 1887. business
conditions improved materially. It was
expected that the Improvement would
continue in 1888. There was, he said,
every reason to expect that the rev.
enues for the fiscal year 1889 would
be greater than the expected revenues
for 1898. To this he coupled hope
for a reduction in the cost of relief,
and decline in the total expenditures
for 1899. -.
That was the basis" said the Presi-
dent "for our expectation of a bal
anced budget for the fiscal year l939
The recent recession in business has
changed that outlook Today it Is
necessary to revise the estimates Of
revenues. We hope that the calendar
year 1888 will bring an improvement
In business conditions and therefore
in tax receipts. The Treasury, leaning
to the conservative side, predicts some
improvement over the present levels,
but does not assume in its figures that
business in the calendar year 1898 will
reach as high level as in the calendar
year 1887"
q. 401.o0o,o0o Receipts Drop Seen.
The Presidents estimate of revenue
for the fiscal year 1899 Is tSR19 ,00O,-
600, compared with the present esti-
mate of receipts for the fiscal year
1888. of Sc. 100000. This was fall
ing off in revenue of s401 ,000, 600. The
net deficit now expected-s950,0 600 900
will be $138.000,0 900 less than the
expected deficit in the current fiscal
year. -
The gross pubhc debt reaches new
high, at the close of the fiscal year
1899, according to the estimates sub
mitted by the President. It will total
$38.528, 100000. This is an increase Of
, 1924 800. 900 over the estimated gross
public debt at the close Of the present
fiscal year. It is an increase in the
(See National. PITD(;ET po0o 4 -6l