BALANCED BUDGET

Ashburton Guardian, Volume 56, Issue 72, 7 January 1936, Page 5

BALANCED BUDGET

FINANCE IN UNITED STATES.

FORECAST BY THE PRESIDENT.

EXPENDITURE ON ARMAMENTS

(United Press Association—Copyright.) (Received This Day, 10.20 a.m.) WASHINGTON, January 6. In his annual Budget message, presented to Congress to-day, President Roosevelt promised the nation a balanced Budget for the hseal year ending June 30, 1937, with the important exception that no allowance was made for unemployment relief funds, requirements which, he said, he could noiestimate. The theme of the entire message was optimistic, the President pointing out that increased revenues and reduced expenditure had lowered the prospective deficit for the fiscal year ending this June, from the estimate of 4-£ Billion dollars to about three billion 200 million. "The Government credit is at the highest peak. We can look forward to continued reduction of deficits and increased tax receipts and declining expenditure for the employed." The President promised that there would be no new taxes, unless certain eventualities resulted, such as Congress voting a cash payment for the veterans' bonus, the Supreme Court invalidating the agricultural adjustment administration processing taxes or the relief required exceeding expectations for the eoming fiscal year. Mr Roosevelt estimated the expenditure, exclusive of the relief total, at five billion 69 million, and the revenue at five billion 654 million. After 580 millions have been deducted for debt retrievement, the net excess receipts will total five million for the second consecutive vear.

The President put national defence on an annual basis of a billion dollars —the Navy estimates at a total of approximately 551 million, and the Army at 443 million. The naval appropriation, with the addition of unexpended sums on hand, will provide for continued high-speed construction programmes designed to bring the sea fighting forces up to Treaty strength. Large sums are also provided for both military and naval aviation. At least 800 fighting aeroplanes and bombers are projected.

TESTS FOR THE NEW DEAL. COURT VERDICTS AWAITED. WASHINGTON, January 5. The Supreme- Court, which has been in recess for the Christmas and New Year holidays, will be convened tomorrow, and any time after then will hand down decisions, not only of tremendous importance to the political fate of the Roosevelt Administration, but vitally affecting the nation's entire population. Cases involving the constitutionality of the Agricultural Adjustment Administration, the Tennessee Valley Authority, and the Cotton Control Law have been pleaded, and on their outcome depends to a great measure the economic and social direction America Avill take.

The case -above the Agricultural Adjustment Administration involves the Government's right to tax consumers for the benefit of producers, and if it is held illegal the Administration will face the acute problem of maintaining the farm commodities price structure, as well as preventing political disaffection among farmers. The Tennessee Valley Authority represents the first large-scale Government entry into the business of producing and distributing electrical energy, .and if it is held illegal it will probably put an end to such innovations, while if it is upheld it will probably presage greater Government activity in this hitherto private field of enterprise. Cotton control is of paramount interest politically in the important southern States. Any of the three decisions, or all three, may be handed down to-morrow, but as is customary the court has given no intimation when they may be expected.