THE FINANCES OF AMERICA

Press, Volume LXXIII, Issue 21987, 11 January 1937, Page 9

THE FINANCES OF AMERICA

MR ROOSEVELT'S BUDGET MESSAGE DEFICIT OF FOUR HUNDRED MILLION DOLLARS WASHINGTON, January 8. Mr Roosevelt's budget message for the 1937-38 financial year states that a balanced budget for 1938 is possible only if industry within the next six months will hire approximately a quarter of the persons now on relief and thereby reduce the Federal expenditure for that purpose. Estimated expenditures, including 1,537,000,000 dollars for relief, total 7,695,000,000 dollars. Estimated revenues total 7,293,000,000 dollars, representing an" imcrease of 1,465,000,000 over 1936. A deficit of 402,000.000 is estimated. The public debt at June 30 is estimated at presenting an increase of 1,348,000,000 over 1935-36. It is expected that the budget will be completely balanced by 1939 if economic improvements continue. No new 'taxes are proposed, but the extension of the expiring nuisance taxes is advocated.

Among individual items of expem diture in the budget are 100,000 dollars for the Civilian Conservation Carps, 790,000,000 dollars for the remaining five months of the present fiscal year to carry out the emergency project; national defence 980,000,000 dollars, returned soldiers 577,000,000 dollars, social security 836,000,000 dollars, public works 407,000,000 dollars. Mr Roosevelt warned the nation that, without re-employment in industry, balancing the budget must open one "very good reason for this Gdverhirient not to propose next year, any more than the last foUr, to allow American families to starve." To achieve the object of the 1938 budget, the relief costs must be reduced one-third below 1936-37. . The President disclosed that the huge sum of 19,212,000,000 dollars was allocated and appropriated to, fight against the depression, Of this, 14,036,000,000 was actually spent by June 30, 1936. Should the Government recover the expenditures, which were loans, the total would be reduced by 3,626,000,000 dollars. The "New York Sun," in spite of its bitterly anti-Roosevelt policy, commenting on the budget, says: "On any basis, it appears the most encouraging picture the President has ever presented. No further substantial strain will be imposed on Government credits, -«'o new tax burden is Heaped on the American people, for the present at least, and the Frankenstein monster of relief will be reduced a little, even if the reductions are to be instantly de-< voured by other money-hungry Governmental agencies. VOTE FOR RELIEF WORKS A BIGGER SUM WANTED - (Received January 11, 1.30 a.m.) WASHINGTON, January 10. Protests against the provision of only 650,000,000 dollars to Works Progress Administration, projects until June 30 resulted in a parade of 8000 persons in New York, with banners and floats, demanding .a minimum of 1,250,000,000 dollars; the announcement that the workers' alliance will request an appropriation of 1,040,000,000 dollars, and the creation of a new congressional block headed by Senator W. E. Borah, which will endeavour to increase the appropriation to a minimum of 850,000,000 dollars.