Evening star., 1940-03-22
Treasury Cash
Held Inadequate
For Farm Aid
Morgenthou Deals
Blow to Senate Plan
To Meet Benefits
BY ]. A. O'LEARY.

The argument advanced during the
farm bill debate that some of the
Treasury's cash working balance
could be used to meet the $209,000,-
900 the Senate has added to the meas
ure, was dealt blow today when
Secretary Morgenthau advised Sen
ator Byrd, Democrat, of Virginia.
that the estimated balance as Of
next June 80 will be about as low
as it can be permitted to 60"
In his letter to Senator Byrd, Mr..
Morgenthau figures the working bal
ance as of that date at $1,0l1 100000.
The Virginian said, however, he mas
been informed by Treasury officials
that there should be deducted from
that total 100000, 900 of obligations
of various Government corporations
and credit agencies, leaving $780,
100000.
Senator Byrd also had data from
the General Accounting Once, esti-
mating the working balance as Of
June 80 at $514,225,114
Was Estimated Higher.
In the debate two days ago Sem
ators Byrnes, South Carolina; Clark,
Missouri, and Barkley, Kentucky,
all Democrats, spoke of the working
balance as $1,600,000 900. Senator
Barkley also said at that time he
did not think it should go below
81 1000, 100000 Senator Byrd con-
tended at that time that the un-
encumbered balance would be about
$500 100000.
Meanwhile. the Senate sought to
pass the farm measure this after
noon If a final amendment to re-
Ieve cane sugar producers can be
disposed Of. Senator Ellender, DEM
ocrat, of Louisiana is seeking to
aid producers who increased their
acreage after the administration
lifted the sugar quotas at the out
break of the war last September, to
keep sugar prices from going up.
Three months later, Senator Ell
lender said, the quotas were re-
established.
Morgenthau Letter.
Secretary Morgenthau's letter to
Senator Byrd on the Treasury's
working balance follows:
THE following information is
furnished you in compliance with
your telephone request of this
morning.
I'm the 1941 budget submitted to
the Congress in January of this year
it is estimated that the Treasury's
working balance of June 80, 1910,
xr-in 1,e 81 rnI,1n-
ton of 81 ,291 ,000, 900 during the cur
rent fiscal year. The Treasury does
not segregate its working balances
in the general fund to show its obli-
cation on any particular class Of
accounts, but considers its total
working balance as available to meet
the demands made on any of these
accounts as well as to meet general
and trust fund expenditures of the
Government.
In view of the large amount of
demand obligations now outstanding
which the Treasury may be called
upon to meet, such as the checking
accounts and deposits of govern
mental corporations, credit agencies,
ETC., in the aggregate amount of
over S400, 100000; the unemployment
trust fund, amounting to s1,640,0O0.-
900; special obligations issued for
accounts of the Postal Savings Sys-
tenn and the Federal Deposit In
surance Corp, amounting to $142,-
000,000 and outstanding United
States savings bonds with re-
demption value of S2,700, 100000 it
is felt that the estimated working
balance of the Treasury on June
80, 1910, as contemplated by the
Presidents budget, will be about as
low as it can be permitted to co.
Savings Used on Farm Bill.
BY voting S2l2000, 900 for parity
price payments, and $85 100000 ad-
ditional for disposal of surplus COM
modities, the Senate has used UP on
the farm bill nearly all that had
been saved on other bills for the
purpose of avoiding the S460,000, ,0o0
of new taxes recommended by the
President in his budget.
The long-awaited Senate battle
over the administrations reciprocal
trade agreement program may start
late today, if leaders succeed in
bringing the s923,OOO,OOO farm bill
to final vote by midafternoon.
Facing at least Today or two
week fight on the trade agreement
resolution, Majority Leader Barkley
is planning a session tomorrow and
probably Saturdays in succeeding
weeks, whenever major legislation
is pending.
The Senate late yesterday ap-
proved amendments authorizing the
Reconstruction Finance Corp. to
make loans of $4O,000000 for the
program of the Rural Electrification
Administration and of $50,000,000
for the farm-tenancy program un-
der Bankhead-Jones Act.
The House bill carried a direct
appropriation of 10000 900 for the
R. E. A., which the Senate decided
should be financed instead by the
R. F. c. The Budget Bureau recon-
mended $25 100000 for farm ten
ancy, for which the House made no
provision.
The Senate blocked a move yes
terday by Senator La Toilette, Pro-
gressive, of Wisconsin to increase
the fund for the Surplus Commodity
Corp from $4,000, 900 to $4,000, 900
for the purpose of extending into
60 more cities the stamp plan for
making surplus food supplies avail
able to families eligible for relief.