Evening star., 1939-11-21

A 194l budget designed to cut the
Federal deficit for the year to around
100000 by offsetting higher de-
fense costs with lower relief and
other expenditures and increased tax
revenues was authoritatively re-
ported today to be under consider
alton at the White House
Although official figures could not
be obtained-some of them have not
been decided yet-Stephen Early
White House secretary, said sur
misses about a sharply reduced def
cit were pretty close"
Harold D. Smith, budget director
also said cuts are being made or
some items"
Getting the deficit down to ST.
000,000,000 was said to be the desire
of some administration advisers, but
this figure was said reliably to be
too optimistic.
Estimates Presented.
From these hints, authorities de-
duced the following rough estimates
of what President Roosevelt might
recommend in his annual budget
message to Congress in January for
the l94l fiscal year, beginning next
July /:
Expenditures-nearly SO $50 900 900
Receipts-about $6,500 100000.
Deficit-about 50 100000.
The amount OF next years rev.
enues constitutes, perhaps, the big
gest question mark in the Presi-
dents budgetmaking officials say
that since business is much better
tax revenues should be considerably
higher, but some of the officials in
charge of preparing revenues esti-
mates have been extremely con-
servative in their guesses of the
amount of gain.
Because no official estimates of
the current years budget have been
made for about year, comparison
of estimates for next year is diff
cult.
Unexpected Items.
Last January, the President pre-
dicted spending of about $1,000 ,00O, :
600, but the cost of neutrality en-
forcement and other unexpected
items has increased this. At the
same time, changing business con-
ditions have altered the revenue es-
Inmates. which were expected last
January to result in a deficit of
about 3O0,00O.O0O. so current
guesses of this years deficit range
between $3,000,0OOO0O and $4,000
100000.
Even though next years spending
total may closely approximate this
years, the purposes of spending are
slated to shift radically, informed
officials said.
While national defense expendi-
lures are expected to increase from
about $500. .0OO,O 900 to approximately
81 900 900, ,000-split about evenly be-
tween the Army and Navy-other
things are expected to be cut.
Because business is better and
more jobs are avallable-a $1,000
100000 figure is the goal for next
years relief appropriation, COM
pared with about $1,4OO 900 900 this
year
Because farm prices are believed
by some'officials to be in better con-
dit:on, some cuts are being agitated
on benefit payments and other agri-
cultural expenses.
Works Cuts Planned.
Perhaps the sharpest cut may
come in public works. Here, reduc-
tions are being planned on P. w. A.
Federal buildings, Federal roads
dam construction and other public
works. Between these activities a
maximum of $500 100000 might be
saved. The only works spending
currently favored by persons close
to the White House is that needed
to finish projects already under way,
with nothing for new projects.
Chairman Harrison of the Senate
Finance Committee, which prepares
tax legislation for Senate considera-
ton, discussed the revenue outlook
with reporters after lunching with
President Roosevelt yesterday.
The way collections from present
Federal taxes have been increasing
"gladdens our hearts," the Missis-