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More Spending Seen as Aid to Manner in Which Government Hopes to Bring Total Expenditures Within Income in Next Two Years Outlined; Operating Expenses Reduced HEAVY FINANCING TASK IS PRESENT PROBLEM Roosevelt, However, Is Unperturbed by Prospective Difficulty of Getting Money; Sees Big Advance in Condi- tion of General Business ting the budget to congress Thursda: follows: the itil of the United States: i : transmit herewith the budget for the year ending June 30, 1935. It wai eed estimates of receipts and expenditures for the current year come) a a pa and Beatle statements of the financtal operations tatus ernmental agencies, i anos Corporation genci including the Reconstruction Fi- estimates herein given and included in the budget hay general seid special funds—the government's moneys, - ae ele to trust and contributed funds which ate not gov In my annual message to the congress I have alread; ly summarized th Presented by the deflationary forces of the depression, the paralyz- tion, and, indeed, the whole orderly contin ‘8 rah iayeeer ly continuation of the nation’s | Normal activities and the restoration of the credit of the government. Of necessity these many measures have caused spehaicg by the genet segs in eed od the income of the government. Tesults of the expenditures already made show themselves ii i on “Teena Labcanad Ufo os irks commodities, in renewed. business “activi- g employment, in reopening of and restored banks, and in well-organized reltet. sisoied . bret THE CURRENT FISCAL YEAR iy (Ending June 30, 1934) Exclusive of debt retirement of $488,171,500 for this year, budget esti- mates of expenditures, including operating expenses of the regular govern- ment establishments and also all expenditures which may be broadly classed @s caused by the necessity for recovery from the depression, will amount this year (ending June 30, 1934) to $9,403,006,967. This total falls in broad terms into the following classifications: General: a = $2,899,116,200 17,718,500 616,857,067 $3,533,691,767 Less public debt retirements .................cccccceeseees $ 488,171,500 Total. general ............. 6. sceeeeceeceee seen eeeceeneees $3,045,520,267 Emergency Public works administration . 1,677,190,800 Agricultural adjustment admini + 103,250,000 Farm credit administration 40,000,000 Emergency conservation wort 341,705,600 Reconstruction finance corpora’ 3,969,740,300 19,000,000 Tennessee Valley authority . Federal land banks .... Federal deposit insurance National industrial recovery administrat Total emergency ‘.. $6,357,486,700 Total general and emergency, less public debt retirements $9,403,006,967 Sees Total Receipts of Three Billion As against these expenditures, which have either een appropriated for or for which appropriations are asked, the estimated receipts for this fiscal year (ending June 30, 1934) are $3,259,938,756, On this basis, including, however, certain additional expenditures for 9934 which are not included in the budget estimates but which I believe to be necessary and amounting to $1,166,000,000 as shown in a subsequent table herein, the excess of expenditures over receipts will be $7,309,068,211, Interest charges on the borrowings in excess of budget estimates will lightly increase this figure. ‘On the basis of these estimates, the public debt, in the strict sense of the term, at the expiration of this fiscal year will therefore amount to ap- proximately $29,847,000,000, or an increase as shown above of $7,309,068,211. However, as against this increase in the total debt figure, it is right to point out that the various governmental ncies have loans outstanding with a book value of $3,558,516,189 against which collateral or assets have been pledged. In order to make clear to the congress what our borrowings problem 4s for the next 6 months, permit me to remind you that we shall have to borrow approximately 6 billion dollars of new money and, in addition, 4 bil- dollars to meet maturities of a like amount. sis THE FISCAL YEAR 1935 (Ending June 30, 1935) The budget estimates of expenditures, exclusive of debt retirement of 9525,763,600 and exclusive also of such sum as may be necessary for new and recovery purposes, for the fiscal year ending June 30, 1935, amount to $3,960,798,700. ti cuinmarizing the main headings of these expenditures, they fall ~ Again su! i into the following items: Expenditures for fiscal year ending June 30, 1935. Departme: $3,202,074,900 fartiiee 18,734,500 Independent establishments . 542,466,600 $3,763,276,000 Less public-debt retirements ..........+-.+ ssesesaenniese 525,763,800 TOTAL, GENERAL .......... sa eneroccssensccoes eceeees — $3,237,512,200 ‘vorks administration - —_1,080,883,100 Kerio’ ural adjustment administration : 5,000,000 ‘Emergency conservation work pees . ppc Reconstruction finance corpo! 436, 4 sae 31,000,000 12,650,000 723,286,500 ‘Total, General and Emergency, less public-debt retirements _3,960,798,700 ((A) Excess of credits-deduct.) Some Items Carried Are From Current Year It will be noted that many of these iteins, such as public works, fall under tions made in 1933, the actual expenditures not taking place until June 30, 1934. ‘The above figures do not include additional loans by the reconstruction | same management as when these fimance corporation. If its loaning authority is extended beyond June 30, 1934. it is that any additional loans by it would thereafter be taken from the new and additional recovery fund hereinafter referred to. » ‘The estimates of receipts for the next fiscal year (ending June 30, 1935) exclusive of foreign-debt payments, of increased liquor taxes and of increased revenue flowing from amendments to the existing revenue law, amount to year show a small surplus of $1: .779. But it must be borne in 4 rig expenditures for ex- Ts te clear thatthe hecessity for reliet and recovery will still be with us the year 1934-35. gr ogroue eyed ne icon wtl bedeeal needs of the country prohibit the al rmination of Program. can, on this date, definitely predict the total amount that will be of such an amount. It is my best judgment at this Million for New Emergencies sak the congress {or appropriations approximating that Recovery Move traneadhinston, Jan. 4.—(@%—The text of President Roosevelt's message’, (A) These estimates of They do not relate! where expressly referred to as such, Saicaeee Sears GENERAL FINANCIAL POSITION | Problems ed condition which affected the banking system, business, agriculture, | I have outlined the steps taken since last March for the resumption of | (B) Estimated. of tl exclusive of debt retirement, these budget estimates for the tinuing reduction of the national debt. Expenditures Were Necessary This excess of expenditures over revenues amounting to over nine billion dollars during two fiscal years has been rend necessary to bring the aay, to a sound condition after the unexampled crisis which we encountered last spring. It is a large amount, but the immeasurable benefits justified the cost. | ___ The following table shows expenditures and receipts for the fiscal years 1934 and 1935 as contained in the budget, plus the additional {expenditures which will be made out of additional authorizations and | appropriations here recommended. It shows, also, the estimated increase in the public debt and the book value of assets held as security against loans: a 1934 1935 1934-35 Receipts (A) ......... $ 3,259,938,756 § 3,974,665,479 $ 7,234,604,285 Expenditures (exclusive of debt retirement) 2,530,720,267 2,486,768,200 —5,017,488,467 514,800,000 760,744,000 — 1,265,544,000 6,857,486,700 723,286,500 _ 7,080,778,200 9,403,006,967 2,960,798,700 18,868,805,667 Additional Expenditures fr..a Additional Appro- priations ......... eee 1,166,000,000 —:2,000,000,000 —_3,166,000,000 | Total Expenditures ... 10,569,006,967 —5,960,798,700 — 16,529,805,667 Increase in Debt (X) .. 7,309,068,211 —1,986,133,221 —9,295,201,432 Estimated book value of assets held as security for loans ........+003+ ae wees tenes rere 5,461,969,273 ‘ipts are predicated on federal reserve jboard average index of industrial production of 81 for fiscal year 1934 and of 98 for the fiscal year 1935. (B) These include net expenditures after deducting reconstruction finance corporation repayments in 1935 of $480,436,600. (X)_ This figure does not include contingent liabilities such as re- construction finance corporation debentures issued to banks and other institutions. Reserve Board Index of Industrial Production Calendar Year Fiscal Year APPROPRIATIONS The budget estimates of appropriations for 1935, exclusive of agricul- tural adjustment administration benefit payments and refunds of processing taxes, but inclusive of all other appropriations for regular departments and. independent establishments including interest on the debt and debt retire- ment are $2,980,293,833.60. When compared with budget estimates of appro- |priations transmitted in the budget for 1934 they show a reduction of 9684,- 913,167. TAXES The estimates of receipts take no account of the which may be obtained from ah increase in liquor taxes posed changes in the income-tax law. Since neither of Ge before congress as yet, no accurate estimate can be yield. However, if, as proposed by the committee of ways and means, the on distilled spirits is increased from $1.10 a gallon to $2 a gallon rates of tax on wines are also increased, the est increased by approximately $60,000,000, assuming that consumpt: affected by additional gallonage taxes imposed by the states. Considerable additional revenue ean also be secured from administra- tive changes in the income-tax law, which may amount to as much as $150,- 000,000 for a full year. The estimates for the postoffice department are predicated upon a con- that this rate be continued. I recommend its continuance, ECONOMY LEGISLATION having to do with reduction of compensation of federal employes. It is eminently fair that, the cost of living having fallen as compared with 1928, the employes of the government sustain some reduction in com- pensation. This is not inconsistent with our policy of advocating an in- crease in wages in industry. ~ For wages there had fallen far beyond any reduction contemplated for pene to paid federal employes under the maximum reduction of 15 per cent. Among the legislative provisions appended hereto is one prohibiting | automatic increases in compensation except in the army, navy and marine corps. The personnel of these three services are engaged in a life service ito their country. Some, by reason of the pay freeses, have sustained reduc- | tion in compensation of more than 25 per cent. They are, therefore, in a | different category from those in other governmental agencies. They should, |in 1935, be released from the restrictions on automatic increases in com- pensation, CONTROL By ies Oe aree — yonder, I eet that jee Penditures, , by executive ve necessary con- trol in the bureau of the budget. Heretofore, emergency expenditures have not been subject to audit by in the departmental expenditures, there will be, in emergency expenditures, |@ pre-budget and a post audit. | By reason of the fact that the bureau of the budget has had no control in the past over the various expenditures, obligations, and allotments made has been the most difficult one since the budget and accounting act went into effect in 1921, These difficulties, in future years, will be substantially minimized by the control which I have established. It is evident to me, as I am sure it is evident to you, that powerful forces for recovery exist. It is by laying a foundation of confidence in the Present and faith in the future that the upturn which we have so far seen will become cumulative. The cornerstone of this foundation is the good credit of the government. It is, therefore, not strange nor is it academic that this credit has a profound effect upon the confidence so necessary to permit the new recovery to develop into maturity. If we maintain the course I have outlined, we can confidently look for- ward to cumulative beneficial forces represented by increased volume of business, more general profit, greater employment, a diminution of relief expenditures, large governmental receipts man happiness. CONTINUE PD Sehc crete es Says State Mill Is | seded tnt motion and te ewe Defrauding Farmers by people in the state of North Da-|sion July 26, Mr. Gronna moved that kota.’ | Mr. Spencer be removed. Again I sec- It is apparent, therefore, that even onded the motion. Governor Langer as far back as 1937 the auditor of the | again voted ‘NO’ and declared the mo- mill found unbusinesslike manage-|tion lost through the exercise of his From 1927 to March 11, 1933, the mill virtually remained under the criticisms were offered, and through- i ll Ey § g i ae 7 Today’s Contract Problem South is the declarer at six clubs. West opens the , king of hearts. It does not look very dificult for- South to make six-odd, but you will find that it takes perfect tim- “o> ° clubs, which East refuses to win. gi 7 e a gr : SeRe 5 i if H Duplicate—All Vul. Opening lead—@ K. refuse to win the diamond Covers a period from April 14 to “In the first report, Mr. O. B. The estimates of appropriations submitted in the budget are predicated | auditor, set out and analysed on the continuation of certain economy legislative provisions which I ask|sales of flour to to be enacted and which are appended hereto. The most important is that; There were 44,700 tinuation of the 3-cent postal rate for nonlocal mall. It is highly important | SPOT Ht i g A z s i I i ile A Ege i § ee T3ELE ae i i é | federal employes and in most grades are even now substantially below com-, ag rH, i z § e i i F aggE i pat g f i the comptroller general of the general accounting office. Today I am, by |$51,000.00. There you have a executive order, reposing in him the authority to conduct such an audit and example of how closely Mr. to continue to audit each such expenditure. Hereafter, therefore, just as|followed the instructions of by the emergency organisations, the task of preparing the present budget | mate. FE HH Mit i i i i R i BE i Pi i 78 E i i i F E EH é i i i : i i B: | ment of that institution. |veto. Finally, at a meeting on August’ f z fl Hy i EH i ‘ gq i g, ? i E dt .11, Reduced to sea level, 3 3 raf i iit il t s 3 e : i i ; ef t i E g E Had i eee ne i FRANCE IS SHAKEN BY FRAUD EXPOSURE IN MUNICIPAL BANK Finds That Fake Pawnshop Bonds Were Sold to In- surance Companies Paris, Jan. 4—(?)—France was shaken Thursday by charges that ten to twenty-million-dollars in frauds have been revealed by the collapse of the Credit Municipal Bank of Bay- onne, which was the city’s pawnshop, and the disappearance of its myste! ious founder, Serge Stavisky. ‘The manager of the institution was jailed December 30 and a warrant was issu with the recent alleged issuance of {unauthorised bonds. Premier Camille Chautemps, with defeat his con- | Principal victims of the sale of frau- {hird round (dulent pawnshop bonds, which Bta- ck of |Visky—operating under the name of ‘The | Serge Alexandre—is suing for from three to ten times the pawnshop's limit of 50,000,000 francs (about $3,000,000). by of the bonds a circu- bat I I vised insurance companies they were | committeeman, ilegally permitted to invest in muni- jcipal pawnshops. Stavisky, a 47-year-old, Russian- jeweler, in a lordly manner, wit ‘said, entertaining lavishly and culti- jvating friendships in official quarters. ‘worldwide man hunt was organ- CONTINUED Sires, peg one: sident Expects Government to Go Into Red Until ’36 iat ie | essee Valley authority; $65,190,000 tor emergency conservation work; $12,- are many | 650,000 for federal land banks; and ‘Could discuss, | $7,000,000 for the Agricultural Adjust- cent | Ment ion, In his message, he noted that the ‘budget for the new year—the first he bas submitted to congress—shows @ | reduction of $694,913,167 in the regu- lar ordinary expenditures over the budget submitted a year ago by the outgoing administration. “Startling” was the way Speaker Rainey described the message, while | Halls of Congress | Washington, Jan, 4.—(#)—Amiable a Here and There in ‘warmer |senators Thursday dusted off for Carl Ba Sam oe ee Meten Sie aetele Rg da i i E i a Eesk i E i + # Be 3 g eet ad H If | iH . Ze ! I Lf iE i I : t ed for Stavisky in connection | / Bee i! New Mexico district judgeship, and now the senatorship. pase . Senator Lewis shook his oft- pink whiskers in some dejection Thursday at a reminder that he sometimes has too many friene, ‘The Illinois Democrat, imanaca- lately garbed a8 usual, was ush- ered unceremoniously from an aisle of the house chamber Wed- nesday before President Roosevelt spoke to congress. All the seats |. Mrs. Bolivar BE. Kemp and J. Y. Sanders, Jr., eee ba ag istana elections same seat, nearly occupied it jointly Wed- nm jesday. ‘Among the hundreds packing the house floor to hear President Roose- elt's message to congress, the elec- ion dispute "|seat apart—and that was an empty Senator Couzens of Michigan and Senator Lewis of Illinois are the short and the long of it in the senate biographical section of the new congressional directory. Couzens wrote 27 words about himself; Lewis 34 lines, MANDAN GIRL INJURED Struck on the head by a chunk of plaster which fell from the ceiling, Miss Anna Scholl, 18, Mandan restau- rant employe, is in a hospital there suffering from gashes and contusions. She was working in the restaurant charged with s-| kitchen when the loose plaster fell. Physicians seek to determine if her skull was fractured. NAME ALMONT POSTMASTER They include Otis Malone of Al- mont. a PATTERN 1741 With the aarti ht new school frock for younger sister, We're sure she will find this ador- able model irresistible—and it's such an easy one to make! Included with the pattern is the new Instructor that shows by illustrations the easy way to fashion the pretty sleeves, the fetching collar of contrast, the new . 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