Evening star., 1941-02-10
CoastGuard Increase
Sends TreasuryFund
To S304,330,1S5
House Body Approves
$375, ,000, 900 for
W. p. A. Until July
BY the Associated Press.

by the Associated PreSS.
A bill appropriat sl,146, 1894 ,496
for the Treasury and Post Office
Departments during the 1912 fiscal
year beginning July l was sent to
the House today by its Appropria-
tions Committee.
1t provided s3O4 800, 1885, including
funds for expansion of Coast Guard
defense and neutrality duties, for
the Treasury Department, and $842,-
064,3ll for the Post Office Depart
ment. Both totals were slightly
lower than President Roosevelt's
budget estimates.
The committee also recommended
a s375 900, 900 w. P A. fund to last
until July and told Congress today
that industrial expansion arising
from defense needs would cut deeply
into relief grants.
The committee approved a cur
tailed program which would permit
w. P. A. employment to drop to
1900 900 persons in June. The pre-
vious low OF l l,455 ,977 was reached
in August, 1887.
The Treasury total represented a
SIS 100000 increase over the current
years appropriation, primarily be-
cause of additional defense work.
The committee asked Congress to
appropriate S62 1913, $50 for the Coast
Guard. an increase of $1S,959, ,44O
over the l941 figure. 1t also ap-
proved s6,370,000 contract author
ization fund.
Coast Guard Expansion.
The Coast Guard program, in ad-
dition to regular activities, includes:
Personnel increases of commits
stoned officers. cadets, warrant Off
GERS and enlisted men, $5,12l,342.
Installation of searchlights, depth
finders. anti-aircraft machine guns,
two-way portable radios and pur-
chase of gas masks, 81 10000
Three new 327-foot cutters,
S5000000.
Fourteen smaller cutters, s2,l65,-
900.
In company with our defense pro-
gram of building up and placing the
Navy in strong. efficient situation"
the committee said, 1T has become
necessary to make such improve
mentS and alterations and provide
such equipment and supplies as will
place Coast Guard vessels. suitable
for operation with the Navy, in a
position to fulfill that duty when
called upon"
Four Billion in Funds Frozen.
The committee also estimated that
81 1863 100000 worth of property of
10 European countries had been
frozen" in the United States since
last MAY.
The countries are Denmark, Nor
way. the Netherlands. Belgium. Lux
emburg, France. Latvia, Lithuania,
Estonia and Rumania.
The committee noted that the
President had designated the Treas
ury Department during the ma
tional emergency" to exercise con-
troll over this property
The committee rejected a Budget
Bureau recommendation that the
Post ONCE Department appropria-
ton include an item of 81 .229, 1856 for
the American Export Airlines to op-
crate one trip week in trans
Atlantic air mail service. 1t would
compete with Pan American Air
ways, which has offered to increase
its trips to six a week.
Under existing conditions. the
committee said, it felt a second line
would not strengthen the position
of our foreign air operations and
would greatly increase the burden
on the Treasury
The total recommended for the
Post Office Department was s26.-
574l34 higher than the current
years appropriation but s3.948,276
below the budget estimates.
Twenty additional postal inspec-
tors were recommended to organize
mail facilities at new military cam
tonments.
One-COlor Stamps Urged.
The committee advocated that g.
cent all mail stamps be printed in
only one color to save money Funds
for domestic air mail transportation
were fixed at S2l .280. .327. an increase
of S840128. A decrease of $769318
in foreign mail funds was provided,
making the amount for that service
s15.477,83l.
The committee recommended an
appropriation of s135 ,618 ,35O-an in
crease of 20 per cent-for the In
ternal Revenue Bureau to permit a
more careful examination of income
tax returns in the upper brackets.
The report predicted that the
bureaus work will increase with
tax base changes effective this year,
an expected increase in the average
of income taxes, and higher returns
from corporations engaged in de-
fense work.
The Government" the report
continued, "has need for all of the
revenue the tax laws will produce
and the bureau should be equipped
successfully to cope with technical
difficulties to be encountered and
to collect the maximum tax that