Evening star., 1942-07-01
1M-BiI|ion Balance
Is Available for War,
Senator Byrd Says
900, ,000, 900 Monthly
Can Be Poured Into Effort
For Two and Half Years
BY the Associated Press.

By the Associated Press.
Cash balance for the war, $780,
10000, 900.
Senator Byrd, Democrat, of Vir-
ginia, gave that estimate today of
the amount of money already ap-
propriated but unspent for military
purposes.
He declared the Army. Navy and
other agencies had congressional au-
thority to draw on the Treasury for
sufficient cash to carry on the war
effort at high speed for about az
years.
A $42 800, 900 900 Army supply bill
awaited President Roosevelts sigma
ture after its approval by Congress
yesterday in a session that saw the
old fiscal year end with no final
agreement reached on a disputed
$3.50, 1895 900 farm outlay or a House
approved 81 ,e0S. .669, 900 supplemental
defense measure.
Senator Byrd said Treasury re-
ports indicated the new Army bill
would swell unexpended balances to
point where more than $4,000, ,000,-
900 monthly could be poured into
the military effort for two-anda-
half years if Congress did not make
q single additional appropriation.
Unspent Balance Since 1910.
There has been an uneXpended
balance in the Treasury for military
purposes ever since July, 1910, when
the amount was $1,000 100000" Sem
ator Byrd declared. IF we do not
have sufficient equipment of all
kinds, it certainly cannot be charged
to congressional unwillingness to
provide the money"
Committee clerks estimated total
appropriations in the last six months
at $133852000, 900. but said they had
no way of ascertaining the small
percentage of that amount which
would pay for routine Government
activities outside the war effort.
Suggests Debt Moratorium.
With SO huge war budget, the
Treasury raised the possibility that
citizens may have to be given a
moratorium on their private debts
so they will be able to pay commen-
surate taxes.
Randolph E. Paul, tax adviser to
the Treasury, made public a memo
randum to Congress in which he
said that the problem of drastic
tax increases on persons who spend
a large part of their income to pay
debts, particularly to buy homes,
could be dealt with from a wider
point of view by some sort of more
or less general moratorium on debt
payments, at least for home own
ers."
Mr.. Paul explained that this was
not a recommendation, and he wrote
the memorandum merely in re-
sponse to congressional requests for
suggestions on possible means of
granting relief to persons with heavy
private debts. Among other sug-
gestions from Mr.. Paul were special
income tax credits for war bond
purchases or debt payments, sys-
tenn of postponing for four years
part OF the income tax of persons
who use a large percentage Of their
income for debt payments or saving,
and special spending tax" which
would be an extra income tax based
on the percentage of income a per-
son spends.
Whether any of these ideas would
get official sanction at any early
date was not known, however.
Sees $1,000, 200, 900 Saved.
Senator Byrd said he was con-
fident that reduction of approx
mately 81 1900, 100000 had been eff
fected in non-defense spending, or
about the amount recommended
earlier in the year by the Special
Committee on Non-essential Ex-
penditures which he heads.
A large share of this saving was
attributable to slash of about S578,-
100000 under the previous years
total to make $336,9O0, 900 available
to the WPA. Congress also pared
expenses of the Conservation Corps,
on which Senator Byrd said the Ma
tion had spent 50 300 ,O00, 900 since it's
establishment in 1893.
Because the House refused TO