Evening star., 1940-06-03
Roosevelt Plans
Non.Defense
Economiiziing
No Reference Made
To Reduction Of
Federal Salaries

In an economy move aimed at
raising funds for national defense,
President Roosevelt planned to
launch survey today with Budget
Director Harold Smith to determine
how much money from appropria-
tions for the coming fiscal year for
regular Government agencies and
executive departments unconnected
with the defnese program could be
turned back to the Treasury.
Stephen Early, White House press
secretary, said the goal is 10 per cent
of the funds appropriated for each
agency.
The question of cutting Federal
salaries has not come up, Mr.. Early
added.
Mr.. Roosevelt and Mr.. Smith in
tend to begin their study with a
conversation at the White House
scheduled for o'clock this after
noon. Mr. Early said The move is
in line with steps undertaken by
the President in the last two years
toward having unneeded money re-
turned to the Treasury for i'm
pounding.
Broader Tax Base Urged.
While plans were getting under
way at the White House for the
survey. the House Ways and Means
Committee, in a hearing on the
defense revenue program, was urged
by the National Association of
Manufacturers to broaden the in
come tax base and reduce personal
exemptions
Noel Sargent, spokesman for the
association. recommended that ex-
emption for married persons be cut
from s2,500 to $500 and for single
persons from 81 900 to $500
Mr.. Sargent also suggested
changes in the corporation tax
structure, including lessening the
present surtax range.
In connection with the economy
proposal. it was pointed out that
for the fiscal year ending June 80,
1899, an unexpended reserve Of
$179,534, 900 was returned to the
Treasury in accordance with this
policy On June 80 this year this
sum is expected to be about s184,-
978,O0O
Estimate of s1s4 ,o00, 900.
Although there is no way now Of
telling how much money can be sent
to the Treasury from the 194l ap-
propriations-the topic of today's
White House conference.-the. Early
said he expects the amount will be
in excess of the $184 900 900.
! Some departments, Mr.. Early
pointed out. are in no position to
save money and indeed may run up
! deficits, such as the State Depart
ment. Other agencies like the Civil
Aeronautics Authority and the
Civilian Conservation Corps, which
are part of the defense program, will
not be cut.
Mr.. Early said Mr.. Smith had
pointed out to him that this method
of saving money indicates the budget
system of control is working excel
lently and "justifies itself in . big
way"
The economy study is a step In
the realization of the policy which
the President partly defined two
weeks ago in his veto message re-
jecting s207. 7.720,l40 appropriation
bill for river and harbor work.
Priority of Attention.
In that veto message he said:
Regardless of every other con-
sideration, 1t seems to me that the
non-military activities of the War
Department should give way at this
time to the need for military pre-
paredness. This is a need, not so
apparent at the time the bill was
under consideration by the Con-
gress. that must now be recognized
by all as matter demanding prior
ity of attention"
Budget Director Smith is the only
visitor with whom the President ex-
pected to talk after lunch. His
earlier appointments included the
four principal presidential advisers
from the Capitol, Vice President
Garner, Speaker Bankhead. Senate
Majority Leader Barkley and House
Majority Leader Rayburn; Maj.
Gen. John F. O'Ryan of New York.
commander of the A. E. F. 10th Di-
vision: Gov Rivers of Georgia and
| (See DEFENSE, page A-50