Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-12-22
Roosevelt Described
As ReconciIed 10
3-Bi||ion Deficit
Message Predicted
Asking Expenditures
Of $3.50, 100000

BY the Associated Press.
President Roosevelt was described
by. usually well-informed officials
today as reconciled to a $1,000 OO0,-
600 deficit In the next Federal
budget in spite of an announced de-
sire to limit it to $4,000 900 900.
When the President sends his an
nual budget message to Congress
the first week in January, these
sources predicted, he will ask for
about $9,250, 000, 900 of expenditures
during the year beginning July l,
1910.
At the same time he is expected
to forecast revenues during that
fiscal year of about $500, 900 900
not counting revenue from any new
taxes which Congress might levy.
Whether the deficit will be slightly
more or less than $4,000, 900 900 de-
ponds on adjustments in preliminary
calculations which the President.
the Budget Bureau and Treasury
have yet to make before the big
budget book goes to the printer
next week.
Estimates Discussed.
Income estimates were discussed
yesterday in a conference between
the President and his two principal
tax advisers, Secretary of Treasury
Morgenthau and Undersecretary
John w. Hanes
Behind the scenes, the war has
boosted some costs, particularly
those for national defense, and has
cut some revenues, such as customs
receipts But better business-some
say this is also a war effect-has
reduced certain costs, like relief, and
has improved such revenues as in
come and excise taxes.
BY spending less and taking In
more, the deficit in the next budget
may be about $800,000,00 smaller
than the shortage for the current
year. Careful estimates are that the
Government will spend about So
100000, 900 and take in about IS, TOO
100000 this year.
The President has thrown out
some pretty broad hints about his
next budget which are keeping many
Washington officials on pins and
needles.
Army and Navy Increases.
The Army and Navy feel most
comfortable. They are assured of
increases which will boost the ma
tional defense total from about ST.
10000 10000 this year to 81, 0O0, OOo, 900
next year. AS usual, the Army and
Navy will split this melon about
$3.50.
Even with increases looming for
defense purposes, War and Navy
officials have indicated recently that
their own estimates of need are be-
Ing trimmed somewhat on orders of
the President. Assistant Secretary
OF War Louis johnson talked to Mr..
Roosevelt at length yesterday on the
Army budget problems.
Public works advocates are groan-
ing under prospects of seeing their
funds cut from 100000, 900 to
about $500. 900, 900, including Federal
grants to States for highway build
ing. The budget is expected to rule
out all new projects and to provide
barely enough cash to continue those
already begun. Administrative
funds are due for slashing in this
direction.
Relief is due for a slash from
about $500 900 900 to about 81 .OO0,-
900 900, many officials say. This cut
is based on the belief that improv-
ing business can absorb a substan-
tial number of the jobless.
Relief Demand Cut Hinted.
Decreasing relief demands were
limited by w. P. A. Commissioner F.
c. Harrington yesterday when he
said the agency would ask for no
deficiency appropriation to operate
until July /. The w. P. A. enroll
ment last week was 2,122 900. a drop
OF nearly 100000 from December.
1898.
Better business also is given as
a reason for curtailing public works.
which were initiated largely to Gre
ate work. Likewise, better farm
prices are expected to be offered as
reason for slashing agricultural
benefits, particularly parity pay
ments-a 1925 100000 item.