The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-01-04
ew Emergency Taxes
slked; Deficit F oreseen
ScOntlnued from Page /,

Scontinued
.zss Of l5s2, 100000 over the cur
Flt Agcai year.
W. Roosevelt budgeted for q net
Aslstlt Of e2,i76,0o 900.
NNt be avoided an election year
KecoHallendat lion that the treasury's
$40 D 900 900 borrowing limit be In
creased to finance deficit spending.
KIa estimates that the national debt
% June %, 1891, at the end Of the
fiscal year for which this budget
was drawn wiz aggregate $44,03e,-
10000 just under the limit-pro-
Vided:
Four Provisions
J. That congress avoids extra
budsetaty appropriations.
That congress levies the $780,
100000 emergency national defense
taxes.
B. That the business upturn con-
tinues so that deficiency relief ape
preparations may be avoided.
1. That farm prices improve
somewhat so that parity price sub
sidy payments may be avoided In
the next fiscal year.
III those conditions are met, Mr..
Roosevelt will avoid exceeding the
borrowing limit In this fashion:
Excess Funds To BE Used
He win use $1,150, COO, 900 Of eX-
cess funds now available In the
trehsury,s working balance to pay
some Of this years bills, thereby
preventing the $780,, 900 900 current
deflcit from lifting the national debt
to 44,370, 600, 900 at the end Of this
fiscal year. The figure, instead, will
be $43 ,222, 000, 900 on June 30, 1910.
That will leave him a margin Of APP
proximately $1,778,O00,000 wit h
which to work between the actual
debt and the borrowing limit. II
ali goes well with business and agri-
culture and congress comes up with
requested tax revenue, the 1941 ifs
cal year wi, end with a margin Of
approximately $62,000000 Of the
treasury's borrowing power unused.
This budget puts squarely to con-
gross the question whether the debt
limit shall be increased at this ses.
sion. And 1t poses the related and
equally difficult question whether
there shall be a new start toward
budget balancing by reducing agri-
culture, relief, highway, reclamation,
rivers, harbors, public buildings and
public grants expenditures. Some Of
these are so-called pork barrel items,
dear to congressman and their con-
stituents.
Hold Up No Projects
Mr.. Roosevelt said no major ex.
istiug project would be held UP but
many minor ones would be post
poped. Notable among these budget
slashes were:
Agricultural adjustment from
3e37 900, 600 to $685., 600 900: public
highways, $209,0000 900 to $l92,000,-
OOi,: reclamation, 900 ,000, 900 to $59,-
100000; rivers and harbors improve
1nert, S66,O00,000 to 100000 900;
Miscellaneous items, $3.50, 100000 to
$l65. 000, 900: public buildings, $7l,-
100000 to $50, 1000, 900; grants 10 pub
ia bodies, $328, 100000 10 $ll3,000,-
coo: relief including SIPS, 000, 900 for
Tho farm security administration all
81 which does not show In Mr..
Rooeevelt'S tabular round numbers,
reduced from $l,912,000,000 TO ST.
100000 work relief alone was
clipped almost $500, o00,00 to ST.
100000.
Simple Statement
Mr.. Roosevelt believes this budget
provides The simplest statement Of
government expenditures ever pre-
9ented to taxpayers. Here is Is for
DIE next fiscal year:
National defense ..... .$l,sOO, ZOO, 900
Work relief programs 1,3OO,000,OOO
Agricultural programs. 900,0OO,0OO
Subtle works and in
vestments ........... 1,1OO,00O,O00
Pensions, retirementS
Y and assistance ...... 1900, 1000, 900
Interest ON public debt 100000, 900
Regular operating ex-
penses .............. 100000, 900
Total ...............$ So, 40O, zoo, 900
These figures were offered with q
sharp rebuke Of the glib general
lies" Of the budget balancers and a
challenge to them to show where
The spending could be reduced. Mr..
Roosevelt said he did not believe
The people desired reductions In any
az the foregoing categories and that
To reduce regular operating expenses
the $1,000, 100000 item-congress
would have to act specifically to
eliminate many federal functions.
Where Can Cuts BE Made?
Therefore" he said, "those call
ing for further cuts should have