Evening star., 1940-02-26
S1,7R,o0O,o Cut
In Budget Proposed
By Economy League
Relief, Works and Farm
Fund SIosh Urged to
Eliminate Deficit

Eliminate Deficit
Declaring that the savings pro-
posed had been. carefully diagnosed
and substantiated by sound argu-
ment," and were not selected "at
random to make q pleasant pic
ture." the National Economy League
last night declared the 1904 bud
get could be balanced by cutting
1,745, ,000, 900 from President Roose-
velt's figures for relief, public works
and the farm program.
Mr.. Roosevelt submitted to Con-
gress a budget totaling $8,424, co.,
900, which. on the basis Of esti-
mated income, would leave q deficit
Of 81, ZIG. .000, 900 If all of his recon-
mendations were carried out.
These recommendations included
imposing new taxes Of $3.50, ,000, 900
for national defense and reduce
ing the capital funds Of Govern
ment corporations by $700, 900 900.
The Economy League called also
for the lending corporations to re-
turn 100000, 900 to the Treasury,
terming it drawing on the sur
pluses" Of lending corporations, and
suggested new taxes of $431, 600 900.
Defense Estimates Intact,
The league, a private organiza-
ton with headquarters in New York,
included its proposal in a study en-
titled, Must there be another
deficit" It left intact Mr.. Roose-
velt's estimates for national de-
tense, social security and veterans
payments.
Jumping figures together in a
form differing from that used by
Mr.. Roosevelt, the league suggested
that the relief appropriation be cut
from $l,433, ,000, 900 to $603, 900 900,
that the public works fund be cut
from $764. 900 900 to $3.50 0O0, 900 and
agriculture funds from 1851 900 900
to $500, 900 900.
Mr.. Roosevelt, setting forth his
figures into what he termed q
simple form that any layman could
understand" asked Congress for ST.
SOC, ,000, 900 for work relief, $1,100,-
00O, 900 for public works and invest
ments and 5000, 900, 900 for agricul-
ture.
In making public the study, Ernest
Angel, chairman of the league, said: !:
"Forty-five million working Amer
leans cannot much longer continue
to carry the burden of 5000 900 un-
employed, growing national debt
now at $40 ,000, 900 900 and tax that
has nearly doubled in 10 years can
not continue, without confirming the
present paralysis of American eco
ncmic life and making certain the
permanent loss of liberty in ex-
change for the illusion of state
guaranteed future prosperity.
ITO tie the welfare and security
of the masses to the slippery bubble
of a sure imitation, blown up by
the spenders' promises of debt-to-
prosperity, Is a cruel and stupid
hoax"
Relief Cut Proposed.
The league proposed to reduce
relief expenditures by halving the
$225, 900 900 appropriation for the
Civilian Conservation Corps. trim
ming the cash allowance from $50
to IS month to care for 166, 900
instead of the proposed 230, 900 en-
rollees; reducing funds for the Ma
tional Youth Administration from
So, ,0OO, 900 to SIS, 900 900 to care for
only 10000 instead Of 100000 en-
rollees; abandoning farm security
grants Of SIS, ,000, 900, needy families
to be cared for by general relief,
and slaShing the Work Projects
Administration from $1,1OO 900, 900
to $466, 100000.
This assumes abandonment of
w. P. A." the league said, "and
a return to cooperative relief with
Federal grants of so per cent of the
total cost to State and local gov
ernments. With an average case
load of 2,700,000, the cost would
be $777,600,000 per year-Federal
share, s46e,5eo,ooo; State and local,
$311, ,040, ,000."
To save $414,ooo,00o on public
works, the league proposed to
liquidate the p. w. A., now down
for $1l8,00o,000, providing it with
$50,00O,000 for present commit
ments; slash the general public
works appropriation from $64l O00,-
600 to $4,000 900 to approach its
former levels and abandon pump
priming," and abandon other pubic
works budgeted for 5000, 900.
In proposing a 1851 900 900 reduc-
ton for the A. A. A., the league said
I'VE submit no detailed farm pro-
gram but insist that $500, 900 900 is
ample for soil conservation and SIM
liar programs"
The league also suggested that
funds for the credit agencies be
trimmed from $4,000, 900 to $10.-
100000 and that appropriations for
departments be cut from 81 ,O96, ,O00,-
900 to 1896, ,000, 900, explaining that "a
general reduction in the scope of
government functions should make
possible a reduction of at least
100000, ,ooo."
Income ak.