Evening star., 1939-02-24
House Unit Cuts
Appropriations
By $27,926,138
Most Of Savings
Come in Slash Of
OId-Age Fund
BY the Associated Press.

BY the Associated Press.
The House Appropriations Com
which started an economy
drive this year by whiting down
President Roosevelt's relief proposal,
continued the campaign today by
looping $27 ,926,138 off estimates for
the Treasury and Post Office De-
partments.
The committee recommended ST..
700,471 1854 to operate both depart
ments for the year starting July l..
Despite The reduction, the total was
s197 ,029 ,280 greater than the sum
provided for the current year.
Most of the saving was accom-
plished by cutting $4,000, 900 of the
$500 900, 900 requested for the social
security old-age reserve fund. The
committee explained the reduction
was attributable to what we regard
as an excessive estimate of the
amount of receipts from taxes to be
realized during the next fiscal year."
OF the total in the bill, 5000, $685.
67O was earmarked for the Treasury
and s790, ,844,684 for the Post Office
Department.
Less Than This Year.
The latter'S share was $2,488O53
less than for the current year and
almost as much below the budget
estimates. Despite the postal reve-
nues, the committee estimated the
department would operate with net
deficit Of about s1,844 ,684 during the
next year. The deficit this year was
estimated at s7,893,878.
Recommending a $685. 900 item for
transatlantic airmail service, the
committee said that barring some
major upset in plans. the service
should be on an operating basis dur
ing May
The bill contains a $50 900 900 item
for continuation of the $130,000, 900
public building construction program
authorized last year and for which
$36 900 900 already has been made
available. Part of the $4,000, 900
would be available for Is projects on
which construction was deferred be-
cause the original estimated cost was
too low
During its hearings, the committee
received testimony on a variety Of
subjects, including a statement by
Secretary Morgenthau, that if Con-
| gress votes the funds recommended
by the Presidents budget, the
Treasury will have to ask that the
limit on the public debt be raised
to $50, ,000, 100000 The limit now Is
s45, ,0O0, 90, 900.
Committee members had quoted
him previously as saying the public
debt was going to reach $50, 900 ,000.-
600 and could do so without en-
dangering the Nations financial
structure.
Against Free Gold Market.
Questioned concerning the ad-
visibility of permitting a free mar
ket for gold in the United States.
Secretary Morgenthau said he
thought there would be consider
able disadvantage. He said it would
entail either permitting constant
ly changing price for gold or re-
vert to virtual convertibility with
a fixed price for the metal.
He said fixed price would deprive
the country of the right to further
devaluation of the dollar, right
which he said was lone of the most
useful weapons that the Congress
can place in the hands of the Presi.
dent, to use in case of emergency.
Mr., Morgenthau also told the COM
lnittde the Treasury Department has
continued to purchase Mexican sill
yer in New York since the monthly
quota agreement was Cancelled last
March. However, the Secretary said,
the Treasury since that time has dis
continued keeping a record of pur.
chases of Mexican silver.
Shipped Own Silver.
| Since last March, Mr.. Morgenthau
said, "the Mexican producers have
shipped their silver into New York
and have sold it there, and we do
not know whether it is Mexican sill
yer, Peruvian silver or Chinese sill
yer. 1t is offered to us by reflners
or brokers, and we have no way Of
identifying it; so it might be any
body's silver. We buy whatever is
there"
Cyril B. Upham, deputy controller
of the currency, said the condition
of national banks with respect to
solidity "is very good Only one
national bank failed last year, and
in the first II months of 1888, 81
State and private banks failed.
Surg Gen. Thomas Parran re-
ported that 1888 was the healthiest
year in the history of the United
States. He said, however. that the
birth rate is not high enough to keep
the population stationary and that
the average family has dropped from
S children to 38.
DR.. Parran pointed to Southeast
ern States today as the breeding
grounds" for>the future of the Amer
lean race.
In the future, he said, cit appears
that the breeding grounds" will be
North Carolina, Kentucky, Tennes-
see and other States in the South
east"
In one important respect the
Budget Bureau was overruler by the
House committee in the addition of
$4,000, 900 to the budget estimates
to carry on the Nationwide cam
paign against social diseases. The
bill carries $5,000,0 900 for this CAM
paign.
East Hoinon Isle Port