Evening star., 1938-01-05
Net Deficit for Fiscal Year
3I38,523,6eo Len Than 1888.
National Budget
Continued From First Page.

4\osAOAAoA DuuSOI
Continued From First Page)
public debt Of s15.sss, SOC, 900 over the
public debt at the close Of the fiscal
year 1888, the last fiscal year in which
the Hoover administration had any
part. The public debt on June 80
1891. stood at 3le,S01. SOC, 900, OF
$5,737, 100000 less than on June 80
1898.
The President in his message said
that the operations Of the Social Sc
curity Act and the unemployment
compensation laws Of the States are
having the effect Of materially reduc-
Ing the work-relief program. He pre-
dicted. too, that operations under the
new Housing Act would sreatly assist
In providing employment.
For these reasons he proposed . re-
duction in the appropriation for work.
relief.
Gold Not Considered.
Pointing out that the gross public
debt at the close Of the fiscal year
1899 is estimated at $38,52S, ,252, ,918,
the President said: This does not
take into account any changes In the
debt which may occur as result Of
the Treasury policy with respect to the
sterilization Of gold"
The President declared that the in
crease in the public debt by reason of
the deficit does not mean that the
Treasury will borrow that additional
sum Of money on the market.
There will be available" he said
during the nscal year, for investment
In special issues Of Government obli-
cations, the net sum Of approximately
1,163, 900. 900, which represents in
vestment Of $500, 600 600 from the old
age reserve account. and the railroad
and Government employees retirement
fund, and $573, 900 900 from the un-
employment trust fund, and . reduc-
ton Of SIC, ,o00, 900 in Investments held
for account Of the adjusted service
certificate fund. AS . result Of these
investment operations, the Treasury
financing for the fiscal year 1896
would be confined to rsfunding ma
turing obligations.
It seems clear from this that the
money received from the taxes levied
under the security act are to be used
as . basis for Government loans.
Item Veto Recommended.
President Roosevelt included in his
budget message . recommended ton
that the Chief Executive be empow-
cred to veto any item or items In IN
appropriation bill without vetoing the
entire measure.
The President said there was Q dif-
ference of opinion - to whether q
similar item veto power should be
given the President by legislation, OF
whether . constitutional amendment
would be necessary. He strongly rec
commended that the Ooogrsss adopt
whichever course it deemed correct.
Could Kun Riders.
It 4 pointed out that the Preddent
II such veto power y granted him
could kill legislation riders on appro-
priatin bills as well as items OF
appropriation. The President believes
that such power would discourage the
introduction Of items in An appropria-
ton bill above and beyond the budget
Another legislative recommendation
made by the President was that pro-
vision be made for annual appraisal
Of the assets Of the Commodity Credit
Corporation, and, ~ . means Of pro-
viding funds to make ana guarantees
it, loans, the corporation be provided
with adequate capital. and authorised
TO tssue obligations guaranteed BY the
United States.
With regard to the revision Of taxes,
the President practically reiterated
what he said In his annual message to
Congress. Recalling that he had last
April recommended plugging up loop
holes to prevent tax dodging. the
President said: "As q result of these
disclosures, committees of Congress
have been considering corrective tax
legislation; and hope that there may
be enacted at an early date such
amendments to the revenue law - will
maintain the revenue producing power
Of the present tax structure. while
correcting at the same time existing
proven tnsqualities.'
This was al the Prsldent bad 70
say about. tax revision.
Msse Fer Armed FSresa
For national defense, which tnsludea
the Army, Navy and Marine Corps, q
total Of 1891 10000 Il estimated
$s4, ,oo0. 900 greater than the estimated
expenditures for this fiscal year.
However, the President, in his budget
message today and in his annual mes
sage to Congress on Monday, clearly
indicated that additional appropris-
tions for national defense will Be
asked, unless there y great change
IN the situation Of foreign affairs.
It y expected that, tho Preddent
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