Indianapolis Times, Indianapolis, Marion County, 5 January 1939 — Page 8

WASHINGTON, Jan. 5 (U. .) —Text of the President’s udget message today for the 940 fiscal year follows: o the Congress of the United tates: 5 Pursuant to provisions of law, I transmit herewith the budget of the nited States Government for the fiscal year ending June 30, 1940, foether with this message, which is integral part thereof. The estimates in ‘this budget are based uron a continuation of all taxes ‘now in force and upon a careful nalysis of the existing obligations and future needs of the Govern“ment. I, therefore, recommend appropriations for the purposes specifically detailed in the tables ‘which follow. ~ Taxation yields almost all of the income of the Government, leaving Jess than 5 per cent to come from ~ miscellaneous sources. Revanue from taxes depends mainly on two factors: The rate of taxation and

the total of the national income.|}

This holds true not only of direct

‘taxes on personal and corporate in-|{

come: but also of what are known as ad valorem taxes or other forins of indirect taxes, for the very gud reason that the volume and value of goods produced or articles im-

~~ Spending, Revenue Estimates WASHINGTON, Jan. 5 (U. P.).—Here is the estimate of the | Government's, spending. and revenues as estimated by President | Roosevelt for the fiscal years 1940 and 1939 with a comparison of | actual receipts and expenditures for 1938. . | (All figures in thousands.) = : Actual es 1638 $5,674,318 $59,187 170,896

— $6,204,402 317.258

. Estimate Estimate { 1940 1939 | RECEIPTS: : Internal Reven Railroad Uneni Customs Miscellaneous

$4,985,270

335,000 ; 158,671 rever : $5,603,203 $5,478,941 Total, revenues esessessvsss $5,603, ,478, Realization upon assets eee. Sasi 66,116 41,128 * Total, receipts oc .ovesscessssssosnss .$5,669,320 $5,520,070 $6,241,661 EXPENDITURES: a 1 : ..$ 42,555 $ ei. 870,608

Refunds . 3 Recovery-Relief Revolving Funds. ...... oso Trust Accounts, EC. ec.coescesce seesesns Supplemental Items: _egular New De Recovery Relief

Total, Expenditures, : Debt Retirement NET DEFICIT : ‘DEBT RETIREMENT ..... sessesene

GROSS DEFICIT ....:.. certenvensessanens * Means of Financing Deficit: Net Decrease in Working Balance Borrowings:

150,000 750,000 CL —

—

$7,625,822 $1,384,160 , 65.464

eit |, $1,449,625 532,555 | $ 65,464

‘$9,492,329 $3,972,259 100,000 tie rian .$3,426,343 $4,072,259

100,000 $ 100,000

- ported vary with the rise or fall of the nation’s total income.

CITES PAST EXPERIENCE

‘We can and do fix the rate of taxation definitely by law. We cannot by a simple legislative act raise || the level of national income, but} our experience in the last few years| has amply demonstrated that | through wise fiscal policies and oth-| er acts of Government we can do much to stimulate it. Today the nation’s income is in the neighborhood of 60 billion dollars a year. A few years ago it was much lower. It is our belief that it ought to be much higher.

In order that you may know the|to plans for spreading the coverage

amount of revenue which the Gov-| ernment may expect under the existing tax structure as the national income rises, the following table is submitted. It shows the estimated revenues which may be derived when national income reaches certain levels between 70 billion and 90 billion dollars. : Estimated Federal receipts by

principal sources, at certain 8s-,,.v" expenditures are those which. z erating or unbased on December, 1938, tax rates: Telate Jo we BInoperarn: and involve that deal more particularly with the

sumed levels of national income

National Income Income Taxes . Misc. Internal Customs ..........-:--coeese Miscellaneous Receipts ....... 3 Payroll Taxes .......cocceec0e a 8 Total 5.0 8.0 10.6 The t ed to in- ~ dicate the national income for an ~ particular year and, of necessity, th estimates are rough and may vary somewhat either way. Since taxes are paid from one month to 5 months after income is realized, the achievement of a 90 billion dollar national income in one year will not, for instance, mean tax collection of 10 billion dollars in that same year. This table is an indicator and not a gauge. | During the past nine fiscal years —a period which has seen the national income drop from a high of 81 billion dollars in the calendar year 1929 to around 40 billion dollars in 1932 and rise again to about 70 billion dollars in 1937—Federal revenues, even though on a higher tax base, have never completely cov- * ered expenditures. : : { We require continual study of revenues necessary to carry on he normal functions of the Federal Government and of the role which Federal policy should play in the stabilization of the national economy. Thus study includes a consideration of: (A) The practicability | of reclassifying expenditures on a functional basis and the most appro.priate methods of financing the different classifications; (B) the problem of human security including re- - lief and its costs; and (C) the correlation between national income on the one hand and Government receipts and expenditures on the other.

~ ORDINARY EXPENDITURES

The expenditure side of a budget - may be divided into twé major classes, namely—ordinary, which/ in_cludes the operating expenditures for the normal and continuing functions of government, and extraordinary, which includes those expenditures required to meet the mnonoperating or the unusual costs of government, | " General public works of an annual recurring nature may fall in either class, but in view of their flexibility they have been classed as extraordinary for the purpose of | this ' statement. | The foregoing . table shows [that the excess of expenditures over|revenues in the ordinary classification is attributable to various causes: New functions: undertaken; more carrying charges on the National , though at lower interest rates; and the inauguration of the Social Security and Agricultural programs. Under all of these classifications, new expenditures have been added without corresponding increases in

(In Billions of "50" 50 50 80

ieee 25 39 5. Revenue...... 22 2.6 38. or 4 5

taxes. : | | Fixed costs also have increased pecause of numerous new appropria-|

tions for grants and subsidies. |

CITES DEFENSE PLANS:

Another type of expenditure has peen forced upon us in increasing volume by the real necessity for _ expanding our national defense. We are all aware of the grave and unsettling developments in the field of international relations during the st few years. Because of the f modern warfare, we must now perform in advance tasks formerly could be postponed ‘war had become imminent. A part of additional national ~ expenditures should, _ be put in a special category n a temporary basis. fe The operating expenses of the Government also have increased because of reductions in the hours of work of certain classes of Federal employees, and because of exnansion of the normal functions of e Government with the growth the country. coil Among the new Goverr ental actions which have added to ‘the “of the ordinary budget, the i am is outstanding. Soil vation expenditures and other for the crop adj stment

expenditures when the Social Se-

to states for oid-age assistance, for

under, the Social Security Act, and for improving public health facilities. questions and directly affect the budget.

made under these heads are of such a flexible character as to provide,

Replacing ‘Debt Retirements ...... 8 Increasing Public Debt

Total, Means of Financing

991,605 i $1,449,625

3.320.543 re $3,426,343

3,944,259 ——— $4,072,269

which’ business needs at this time. The necessity of increasing Federal expenditures a year ago ‘to check a recession is a well-known fact. Any’ decision to decrease those expenditures now that recovery has ‘just started. would constitute a new poljcy which ought not to be adopted without full understanding of what may be the result. Se ; May I say emphatically that. I am not suggesting : which is always balanced and an extraordinary budget which is always unbalanced. The ordinary expenses of government should continue to be met out of current revenues. But I also hope that those revenies in times of prosperity will provicie a surplus which can be applied against the public debt that the Covernment must incur in lean years because of extraordinary demands upon it. dg

WARNS OF DANGERS

I helieve I am expressing the

class of expenditures appearing in the annual budget as current outlays, to which this principle might also be applied. For example, outlays for the Boulder Canyon project amounting to more than 120 million dollars have been included in annual budgetary expenditures of the Government, notwithstanding that the total cost of the project, including capitalized interest during the period of construction, will be returned to the Government within 50 years, with interest, While 1 do not advocate that the Government capitalize all of its expenditures for physical improvements, it seems to me that such portions of the cost of public projects as are clearly self-liquidating should occupy a separate category in budgetary reporting. Our financial statement, of course, should clearly reflect, in appropriate classifications, the amount of Government outlays for physical improvements that are not self-liquidating in character. We must take into account the necessity for - making such of these and other . changes as will permit the presentation to the Congress and to the public of more accurate and intelligible statements of the financial operations of the Government. I should like to call your attention to the table comparing for. the 20-year period the amount ‘of the Federal deficit and the increase in the public debt, with the amount included therein ‘for capital outlays. (See chart in columns 6 and 7). It should be understood that this table is not intended to represent values on an earning basis. Nevertheless, under our policy of expanding capital outlays to compensate for variation in private capital expenditures and of making loans to meet emergency needs of our people, the table clearly shows that the greater part of the deficits and the larger part of the increase in the public debt have gone for permanent additions to our national wealth.

have been only partially covered by new revenues.

A new, and partly self-financing, addition was made to the ordinary

curity Act was passed to safeguard the economic security of a large portion of our population. However, no provision was made for revenues which would pay for.grants

maternal and child welfare, for public health work, and for aid to dependent children and the blind, which expenditures in 1940 will approximate $286.000,000. Furthermore, consideration is now peing given

of, and for revising the benefits

These plans present major of future national policy

EXTRAORDINARY EXPENDITURES

Beyond these questions of ordi-

extraordinary “expenditures

relationship between fiscal policy and the economic welfare of the country. These questions concern Government loans, capital outlays and relief of need. Expenditures

through their contraction or expansion, a partial offset for the rise or fall in the national income. - The public has been showing an increased interest in the adoption by the Government of a form of budget which would conform more nearly to the practice followed in commercial business. There has been some criticism of the Government's practice of including in its budgetary expenditures, amounts disbursed for loans, or for self-liquidating projects, or for other extraordinary capital outlays which increase the wealth of the nation.

1 recognized the merit of constructive suggestions of this nature by recommending in my last budget message a change in the method of financing the requirements of the Commodity Credit Corporation. This recommendation provided for an annual appraisal of the assets and liabilities of the corporation, and contemplated that any surplus from operations or any impairment of capital resulting from losses be reflected as receipts or expenditures in the annual budget. Under this greater part of the budgetary defmethod the budget would be affect-|icits that have been incurred have ed, not when the investment or loan gone for permanent, tangible addiis made, but in the fiscal year when |tions to our national wealth. The the surplus or loss occurs. Congress | balance has been an investment in approved t his recommendation in the Act of March 8, 1938, and it might well give consideration to an extension of this principle to other governmental corporations and credit agencies, such as: Agencies under the Farm Administration, Electric Home and Farm Authority, : Export-Import Bank of Washington, Farm Security Administration, aeral Crop Insurance Corporaon, ~ Pederal Savings and Loan Insurance Corporation. ; Home Owners’ Loan Corporation, Inland Waterways Corporation, Panama Railroad, Reconstruction ‘Finance Corpora-

DEFENDS SPENDING

Let us all fix that fact in our minds so that there shall be no doubt about it and so that we may have a clear and intelligent idea of what we have been doing. We have not been throwing the taxpayers’ money out of the window or into the sea. We have been buying real values with it. Let me repeat: The

sources, and I do not regard a penny of it as wasted.

A year ago 1 recommended an increase in work relief, public works and other related expenditures to check the downward spiral of business. The program undertaken at that time has contributed materially, I believe, to the existing upward movement of business and employment, and I feel that the

Credit

ers of the country, no less than the unemployed, are entitled to an assurance that this program will not be curtailed arbitrarily or violently. The actual cost of work relief and similar expenditures goes down after jobs are found by the workers on these rolls.~ A violent contraction, before the natural expansion of private industry is ready to take up the slack, would mean, not only human misery, but a disruptive withdrawal from American industry of a volume of purchasing power

tion, : "Rural Electrification Administration, or : : - U. S. Maritime Commission. Public projects of a self-liquidat-ing character represent another

Estimate of New Receipts

WASHINGTON, Jan. 5 (U. P.).—Here’is President Roosevelt’s estimate of receipts of the Federal Government for the 1940 and 1939 fiscal years, together with a comparison of actual Treasury income for 1938. Mo ’

REVENUES: INTERNAL REVENUE:

(ALL FIGURES IN THOUSANDS)

Estimated ase eoimssimases res $1,903,000 6,500

Estimated $2,086,000 6,500

Income .Tax Windfall Tax $2650 668 Miscellaneous Taxes: ! ge nan Gi al.Stock AA esses iassisnsne : ly ,698 Alcoholic Beverage . Tobacco

§ 1 Suga

Total (unadjusted) ’ Adjustment to Daily ‘treasury Statement

vesnena. ves $2,333,370

$2,333,370 $2,272,158 |

ADD 17.294 $2,279,453

$2,172,970

Total, Miscellaneous ... PAYROLL TAXES: Social Fecurity Cavers sess Wasenss sss $ gpe.300 at axes . 3 Total, Pavroli Taxes .... 23-420 Total, Internal Revenue

R. R. Unemployment: Customs

MISCELLANEOUS REVENUES: Miscellaneous Taxes ..... seseesesesens

$2,172,970

$ 610,500 . 109.300 719,800 4,985,270

335,000

$ 604,448 150,131 754.580 5,674,318

359,187

7 : 760 230 Fees Forfeitures sessments Reimbursements ..

3,548 anest 158,671 . 158.671 $5,473,941

dry : Sle ; Total (unadjusted) . Adjustment to Daily ‘i1reasury Statement : ’ Total Miscellaneous Revenues 141,433 ~~ “Total, Revenues cssesasess. $5,602,203 REALIZATION UPON ASSETS:

7$6,204,402

- 38,544 33.815 2 95 3.347 87,258

Lends of Government Propert

- Sales y 2,383 Total Realization Upon ‘Assets 41.128

hich are of a continuing

the conservation of our human re-|’

11$502,075,000 in

thought of the most far-sighted students of our economic system in saying that it would be unwise either to curtail expenditures sharply or to impose drastic new taxes at this stage of recovery. But in view of the addition to our public expenditures involved in the proposed enlarged national defense program and the program for agricultiral parity payments, for which no revenue provision has‘ yet been made, I think we might safely consider moderate tax increases which woud approximately meet the increased expenditures on these accounts. It should be added, however, that it. is my firm conviction that such new taxes as may be imposed should be most carefully selected from the standpoint of avoiding repressive effects upon purchasing power. : Sound progress toward a budget that is formally balanced is not to be made by heavily slashing expenditures or drastically increasing taxes. On the contrary, it is to be sought by employing every effective device we may have at our command for promoting a steady recovery, which means steady progress toward the goal of full utilization of our resources. We can contribute verv materially toward that end by a wise tax program. : I am recommending the re-enact-ment of the excise taxes which will expire in June and July of this year, not because I regard them as ideal coniponents of our tax structure, but because their collection has been perfected, our economy is adjusied to them, and we cannot afford at this time to sacrifice .the revenue they represent. If the Congress should at this session adopt new taxes more scientifically planned to care for the defense and agricultural programs, it is quite possible that the existence of these new taxes will enable us in a later year to give consideration to abolig ing some of the present excise evies.

FIGURES ARE GIVEN

The revised estimate of receipts for the fiscal year 1939 as contained in this budget is $5,520,070,000, and of expenditures, $9,492,329,000, leaving a deficit of $3,972,259,000. : The estimated receipts for the fiscal year 1940 amount to $5,669, 390,000, and the expenditures for

that year are estimated at $8,995,-

663,000, resulting in a deficit of $3,326,343,000.

RECOMMENDATIONS

Temporary Miscellaneous Inter-nal-Revenue Taxes—I recommend that the Congress take steps by suitable legislation to extend the miscellaneous internal revenue taxes which under existing law will expire next June and July, and also to maintain the current rates of those taxes which would otherwise be reduced next June. I consider that the revenue from such taxes or its equivalent is necessary for ps financing of the budget for 1940 :

Postal Receipts—The estimates of appropriations for the Postal Service included in the 1940 budget are predicated upon the enactment of ‘egislation to provide for the con“inuance during that fiscal year of the 3-cent postage rate for firstslass mail other than for local delivery. While the Government col- | lects more than it spends on first- | class mail, the Postal Service is not

{ s businessmen and farmers and work- | self-supporting because if carries

other classes of mail at less than | COSU. : x ~ Civilian Conservation Corps—The Civilian. Conservation Corps has demonstrated its usefulness and has met with general public approval. 1t should be continued beyond June 30, 1940, and I recommend that Congress enact during its present session the necessary legislation to establish the corps as a permanent agency of the Government.

REVIEWS TWO YEARS

Review of the fiscal years 1938 and 1939, and the fiscal program for 1940: : Boe This review concerns the cash ac-

| tually received and paid out by the || Treasury in the fiscal year 1938, the ‘l'estimates of receipts and expendi- | tures for the fiscal year 1939, and

the fiscal program for 1940. FISCAL YEAR 1938

Receipts—Total general fund receipts for the fiscal year 1938 amounted to $6,241,661,227 which was a gain over 1937 of $9417,821,000. The receipts from income taxes were $4177,091,000 in excess of the amount collected from that source in 1937 while miscellaneous internal revenue taxes were $98,235,000 more. The. amounts collected from payroll taxes under the Sccial Secur= ity and Carriers’ Taxing Acts were excess of «= the amounts collected from the same sources during 1937. Approximately the same amounts were received in each of the two years from the tax on unjust enrichment and from miscellaneous receipts. © On the other hand, the revenue from customs during 1938 declined $127,169,000 from the 1937 collections.

tures for the fiscal year ended June 30, 1938 (exclusive of expen-

\ditures for debt retirement and|

those payable from postal revenue) amounted to $7,625,822,158, as com=

thos

Total, Receipts, General and Special

an ordinary budget |

"Text of President Rooseels Message on 1940 Budget _

at the end of the fiscal years 1939

June MARKET OPERATIONS: Held by Public (Banks, Insur-'

> ance mpanies, Trust Combanies, Corporations, Individ-

= Da C.) Federal Reserve System Governmental Agencies -..... .

Government Trust Funds .... SPECIAL ISSUES: Held By— d Age Reserve Account ........ : ; t Trust Fund _ Railroad Retirement Acct. -..... Employees’ Retirement Funds .. Veterans’ Punds Other Gross Debt

Gecassnssrssene

cess sesscsesas vee

1038,

only that the will remai t these 1 y n al

Gross Public Debt Figures The following table shows the gross public - the fiscal years 1936, 1937 and ‘1938, and the estimated gross debt

1940 Est.

35,449 2,564 1,260 39,874 1,751 1,480 B51 ; 1 564 1

and it is assumed for the purpose ‘of this statement amounts throughou

and 1940:

30,144 30,677 29,408 2,564 2,526 2,430 565 : 1 1,217 34,490

33,073 2,564% - 1,260 1,212 933 - 37,408 . 34,866 33,152

1,172 16 463 557 = 157* 3,634 41,132

267 3 313 19 280 127: 200

626 33.778

662 872 66 2 woo 130 1% 2.675 1,558 37,165 36,424

the fiscal years 19

and relief was $772,539,000 less in 1938 than in 1937, and transactions in revolving funds were $82,583,000 less. - Transfers to trust accounts increased $200,937,000, while expenditures for other purposes were $304,264,000 greater. Ts

DEFICIT FIGURES GIVEN

Deficit and Public Debt—The gross deficit for the fiscal year 1938 amounted to $1,449,625,881. Ex-

cluding $65,464,950 for statutory debt retirement, the net deficit was $1,384,160,931. The estimated net deficit submitted a year ago, as revised and adjusted, was $1,204,330,000. The increase in the gross public debt during the year amounted to $740,126,583, bringing the gross debt on June 30, 1938, to $37,164,740,315.

FISCAL YEAR 1939

Receipts—The total anticipated General Fund receipts for the fiscal year 1939 will be $5,520,070,000, or $399,367,000 less than was anticipated in the budget estimates of last January and $721,591,000 less than for 1938. This latter decrease reflects the adverse business conditions of the late months of the 1937 and the early months of the 1938 calendar years, and is particularly true of income taxes which it is estimated will decline $548,618,000 below the actual collections in 1938. Miscellaneous internal revenue is expected to be $106,483,000 less, and payroll taxes will be $34,781,000 less than

the fiscal year 1940 are based on the assumption that certain taxes which would otherwise expire in June and July, 1939, will be continued. The total anticipated receipts for the this basis are

mated revenues for the fiscal year

11939. The amount of contributions

‘| Insurance Act, which appears as a new item in 1940, will be $4,950,000.

show an increase of $68,900,000 over

_ FISCAL YEAR 1940 Receipts—Revenue estimates for

fiscal year 1940 on $5,669,320,000, an increase of $149,250,000 over the esti-

1939. The effect of the business recession which began late in 1937 will continue to be felt in income tax collections during the "fiscal year 1940 and such collections are expected to be $183,000,000 below those for 1939. Miscellaneous internal revenue on the other hand will increase $160,400,000 over 1¢39, and payroll taxes are expected to be $90,250,000 higher. The tax on unjust enrichment is expected to remain at the same figure as in

under the Railroad Unemployment

Customs receipts are expected to

collections from this source during the present fiscal year, and miscellaneous receipts are expected to be greater than in 1939 by $7,750,000.

ESTIMATES SPENDING

in 1938. Customs revenues are €xpected to show a decrease of $24,187,000 and miscellaneous receipts a decrease of $8.356.000. :

1$9,492,329,000.

RELIEF COST MOUNTS

Expenditures—The total expenditures (exclusive of expenditures for debt retirement and those payable from postal revenue) for the fiscal year 1939 now are estimated at

Expenditures for recovery and relef, including expenditures under an anticipated supplemental - ap-

propriation for the last five months of the present fiscal year, Will amount in 1939 to $3,187,695,000, an increase of $951,528,000 over expenditures for this purpose in 1638. There are also increases of $170,937,000 for the regular departments and agencies; $115,106,000 for. the general public works program; $53,079,000 for national defense; $346,318,000 for the agricultural adjustment program, largely for cotton price adjustments and parity payments; $38,785,000 for grants and administrative expenses under the Social Security Act; $49,719,000 for interest on the public debt; $17, 992,000 under revolving . funds; $78,449,000 for transfers to trust accounts, and $150,000,000 for supplemental items other than for re-

Expenditures—The total expendi- |

pared with expenditures on the} same basis in 1937 of $8,442408,756. |

lief. There are decreases of $2,945,000 for the legislative establishment, the judiciary and the executive office; $32,343,000 for Veterans’ pensions and benefits; $36,383,000 for the Civilian Conservation Corps, and $33,734,000 for refunds of taxes. Deficit and Public Debt—Excluding public debt retirements, the net deficit for 1939 is now estimated at $3,972,259,000, as compared with an actual net deficit in 1939 of $1,384,160,531. The gross public debt on June 30, 1939, is estimated at

licivil departments

Expenditures — The expenditures contemplated for the fiscal year 1940 (exclusive of expenditures for debt retirement and those payable from postal revenues) total $8,995,663,200 which is $496,666,000 less than the amount estimated for 1939. There are increases of $1,046,000 under the legislative and judicial establishments; $83,735,000 for ‘the and agencies; $8,665,000 under the general public works program; $28,121,000. under the Social Security Act; $74,000,000 for interest on the public debt; $4.510,000 for refunds of taxes, and $87,097,000 under transfers to trust accounts. : For recovery and relief it is estimated that $2,266,165,000 will be needed, or $921,530,000 less than the amount. required for this purpose in 1939. Supplemental estimates of appropriations will be submitted to meet the requirements of the Works Progress Administration, the National Youth Administration, and the Farm Security Administration for the fiscal year 1940. Of the estimated expenditure of $2,266,165,000 for recovery and relief purposes, $1,750,000,000 is the amount estimated for expenditure by these

debt st the ender ||

‘Moderate Tax

000.000 ‘by

year 1940 is

WASHINGTON, Jan.

It’s a nine billion dollar budget velt - Administration intends On either basis it is a smaller

738 million ‘dollars less than next shows a proposed reduction of 597 million dollars. = :

«Moderate tax increases” are recommended. by the President! but

Public Works Administration and various departments from old balances and emergency funds, $10,the Federal Housing Administration, and $37,000,000 for reduction in interest rates on farm mortgages. = = . National defense expenditures for 1940 will amount to $1,319,558,000. This is an increase of $309,351,000 over the contemplated expenditures for national .defense purposes in 1939 and represents an increase of $99,351,000 for continuing the current program and $210,000,000 on account of the new $500,000,000 program to be submitted at a later ate. :

ESTIMATES DEFICIT

. There are decreases in estimated expenditures under the Agricultural Adjustment program of $13,667,000; under the Civilian Conservation Corps of $5,000,000; under the revolving funds of $101,949,000; veterans’ pensions and benefits of $1,044,000; and under regulaigsupplemental items of $50,000,000. Deficit and Public Debt—The estimated net deficit for the fiscal $3,326,343,200, or $645,916,000 less than the net deficit for the current fiscal year. The gross public debt on June 30, 1940, is estimated at $44,457,845,210. It should be pointed out, however, that the increase in the debt by reason of the deficit does not mean that the Treasury will borrow that additional sum on the market. There will be available during the fiscal year for investment in special issues of Government obligations the net sum of approximately $950,000,000, which represents investments of $579,000,000 from: the OldAge reserve account, $2171,000,000 from the Unemployment Trust Fund, and $100,000,000 from the Railroad and Government Employees’ retirement funds and from veterans’ funds. ; is : Appropriations—The .appropriations recommended in this budget, including these for the Postal Service, District of Columbia, and probable supplemental items, total $10,190,311,483. The appropriations already made and prospective supplemental items for the fiscal year 1939 for the same purpose total $10,928,609,972. This is a decrease of

three agencies; $469,165,000 by the

$738,298,489.

Federal Spending Chart

WASHINGTON, Jan. 5 (U. P.)

ment expenditures and revenues and surpluses or last 20 years is shown in the following figures:

EXPENDITURES REVENUES

,482,090,191 5,538,209,189 ,795,202,500

3 Et. Abbedediobbisaieteel 940 Est. 8 * Deficit.

$41,131,502,010.

a compl

Good Living Room Suites for ....

The course of Federal Governdeficits over the

SURPLUS OR DEFICIT

$ 202,475,198 23,772

3,912.259,000% 3,326,343,200°

under |

it.” 1| No PWA program is included in or

| Tncreases’ Are Urged but Only if | They Avoid ‘Repressive Effects on Purchasing Power.”

By RUTH FINNEY Times Special Writer : : 5.—It’s a 10 billion dollar budget if you count in reappropriations of funds already provided, but not yet spent. !

if you go: by the amount the Roose=

to spend the year ending June 30,. 1940. budget than current year. The total for appropriationg and reappropriations is to be

that for fiscal 1939, the

For ‘expenditures the budget

year. a no suggestion is made as to where. they should come from. The Presi= dent says only that the new taxes should = avoid “repressive effects upon purchasing power.” . The increases should cover new spending for national defense and for agricultural parity payments— a total of 422 million dollars The President already has suggested that some of this money might come from taxes on all Government salaries and all Government bonds. All old taxes are to be continued.

Federal receipts will be 100 million dollars greater in fiscal 1940 the Treasury estimates. But the Treas= ury has no hope for increased ine come tax collections next year. In fact it thinks they will be down. This is because taxes collected in 1940 will be based on two relatively low income years, 1938 and 1939. Collections this year drew on the relatively prosperous 1937 incomes. The Treasury estimates incomes will increase in calendar 1939 but will | not reach the 1937 level.

The President’s new national de=fense program will be smaller than many recent estimates. He will ask Congress to appropriate $500,000,000 for this purpose, but he expects to - spend only $210,000,000 of it in fiscal 1940. - The larger sum must be provided so the Government can enter into obligations which will not fall due until later. : The Government is spending $1,017,000,000 this year. Next year it will spend $1,126,000,000, plus the.. $210,000,000 new money the President will ask for, a total of ° $1,336,000,000. > The increase between $1,017,000,000 and $1,126,000,000 is due to obliga= tions falling due in 1940 for battle= ships already started. “The President has not yet disclosed how he proposes to spend the $210,000,000. 7 Diversion of WPA and NYA funds to national defense is not proposed.

{ The Federal deficit will be $41,123,000,000 next June 30. A year later it is expected to be $44,~458,000,000. 5 _ In the 10 years ending June. 30, the public debt will have in-. creased by $28,273,000,000, the budget message estimates. It estimates, at the same time, that $16,431,000,000 of ‘this sum has been spent “for § durable improvements and recove § erable loans and investmen 2 The President said: 5 been throwing this money out of § the window or into the sea. We have been buying real values with

this budget. PWA, of course, will go on disbursing the money already obligated. : The President estimates it will take a 750 million dollar deficiency * appropriation to carry WPA through the balance of the present fiscal year. With this sum, the total for WPA in fiscal 1939 will be $2,354,000,000. Judging by a rough estimate contained in his message, the President expects to spend only $1,692,000,000 for WPA the year following. At the same time one President promised businessmen,

|i farmers, workers and the “unem=

ployed “that this program’ will not be curtailed arbitrarily or violently.”

Estimates for the National Youth Administration and the Farm Security Administration will be made some time in April, along with de=

Only once in a blue moon .. {&)

ete outfit

for . 1 »

This outfit includes {—A Walnut or Maple 4-Post Bed 9—A Guaranteed Helical-Tied Coil Spring | 3—A Hirschman Innerspring Mattress Terms to Suit YOU . . . $1.00 Down ™

During our January ‘Sale you will find many such values see

$39.95

$39.95 Lounge Chairs with Ottoman ......

$119.50 Genuine Mohair Liv. Room Suites

$24.95

Of the reduction of $816,586,000 in| | |ithe 1938 expenditures below of 1937, the bonus

[LUE & :

does EE that you get a BED OUTFIT such a tis one

$89.50

| tailed estimates for WPA.

it happen

«We have not}