Evening Star Newspaper, December 4, 1929, Page 33

PRESIDENT’S BUDGET MESSAGE ASKS $ LARGE REDUC ON INCOMES Bright Picture of Is Presented to Congress by Chief E (Continued From First Page.) salvage operations for submarines, in- cr Navy pay, improvements to air stations, ammunition storage facilities, aviation, the construction of the two | new dirigibles and other items were listed as contributing to the increase. As to the cruiser construction program, the President said: New Navy Construction. “For the 15 cruisers and 1 aircraft carrier authorized by the act of Febru- ary 13, 1929 provision is made to carry forward work on two cruisers already laid down, for three cruisers and the aircraft carrier to be laid down late in thg fiscal year 1930 and for the re- maining 10 cruisers to be commenced late in the fiscal year.” The War Department’s total estimate ‘was $466.626,332, including the funds needed for the Panama Canal. This is $3,173,000 more than was required last year. Provision was made for carrying out the five-year building program of both the Army and the Navy aviation branches, the Army being allotted $36,- 766,825 for this purpose and the Navy $32,230.000. No estimate was submitted for Boulder Dam construction, the de- tails not having been ready in time for inclusion. In his discussion of taxes Mr. Hoover said the Government would have a surplus of $225.581,534 at the end of | the present (1930) fiscal year. Table of Comparisons. | pressing fires, but to prevent the in- | TION IN TAXES ALSO SOUGHT Nation’s Finances xecutive, adequately provide for their health and | education, and to advance their oppor- | tunity for profitable employment are | the concern of the Government. In| order that we may meet more fully our obligations to the Indians, I am asking for an increase of something more than $3,100,000 over the appropriations for | the current year. This increase is re- | quested so that we may more adequate- | Iy meet the need for educational and health work among the Indians and for their industrial assistance and advance- ment. I do not feel, however, that we should wait until the next fiscal year | to make a general improvement in our f Indian affairs. Rather do I feel that | we should commence this now. This | will require additional funds for the | current fiscal year for which an esti- | mate will be presented to the Congress. “Forest protection.—For the protec- tion of our forests I am asking for a substantial increase in appropriations, amounting to more than $2,000,000. We have been spending in past years large amounts on the suppression of fires. In | the last five years these expenditures have amoutned to more than $8,000.000, and the best estimate is that $3,500,000 will be required tihs current fiscal year. We can not hope to eliminate entirely the nece for spending money in the suppression of fires, but our efforts should be to minimize this necessity by more and more adequate protection measures. This is essential, not merely | to effect a saving in the cost of sup- | The President’s budget message car- ries a table making comparison between | the estimates of appropriations for 1931 | and the appropriations for 1930, show- | ing a total, including the Post Office | Department and postal service, of | $4.710.377.376.26 for the fiscal year 1930 | and $4.590915.808.86 for estimates for | the coming fiscal year. Deducting from this the postal service estimates, which | from _postal te: 470,577 for the fiscal year 1931, net total payable from the Treasury shown to be $3,976,141,651.26 for the current fiscal year and $3,830,445.231.86 for the fiscal year 1931, or a net reduc- tion of $145,696,418.40. In this con- nection it must be explained ‘that the appropriations for the fiscal year 1930 include $150,000,000 for the Federal Farm Board's revolving loan fund and that no corresponding figures are in- cluded for the fiscal year 1931. Elimi- nating this item from the 1930 total, the estimates of appropriations in the budget for 1931 exceed the appropri- ations for 1930 by $4,304.000. Concerning the Federal Farm Board, the President explains in his budget message: “I am simply delaying the presenta- tion to the Congress of an estimate for an additional amount for the re- volving loan fund until it is known| more definitely what further amount will be needed. This will not in any way hamper the board, as it has suffi- cient funds at present and an estimate | wiil be presenied to the Congress in ample time in advance of any require- ments for more money.” The President includes & table show- ing in round figures the larger items of increase and decrease.” Besides the Federal Farm Board fund these impor- tant decreases include interest on the public debt, $37,000,000; government life insurance fund, $18,870,000; Bu- reau of the Census, $10,500,000; In- land Waterways Corporation, $10.000,- 000; construction of publi¢ buildings, $9.025,000; Army and Navy pensions, $7.000.000; postal deficiency, $5,500,000; Shipping Board Merchant Fleet Cor- poration, $5,100,000; Indian trust funds. $4.500,000; refurn of funds contributed for flood control, $4,370,000; construc- tion of “hospital facilities, $4.000,000: restoration of roads and bridges in yarious States (transferred to Depart- ment of Agriculture), $3,650,000, and Arlington Memorial Bridge Commission, $1.000.000. Among the larger items of increases are reduction in the principal of the publicd ebt, $11,500,000; refunding taxes illegally collected, $10,000,000: altera- tion of naval vessels, $6,950,000; maintenance and improvement of rivers and harbors, $5.000,000; flood control, $5.000,000; military and naval insur- ance, $4,750,000; military and naval compensation, $4,550,000; enlarging and improving the Capitol grounds, $3.600,- 000; budget for the District of Colum- bia, $3,300,000; forest service, $3,300, 000: Indian service, $3100,000; pay,| subsistence and _transportation, Navy | Department, $3,100,000; Interstate Com- | merce Commission. $2.800,000; com- pletion of the Senate Office Building, $2.700,000: various quartermaster corps items, $2.650,000; public roads, $2,500,- 000: aeronautics branch of Department of Commerce, $2,500,000; Coast Guard, $2.450,000; public works, Navy Depart- ment, $2.300.000; penal and correctional institutions, $2,250,000: salaries and ex- penses in Veterans’ Bureau, $2,000.000; | Panama Canal. $1,850,000; foreign serv- ice, State Department, $1,800,00¢ ordnance items, War Department, $1 700,000; “building of military posts. $1.600,000; new House Office Building, 0,000; bureau of prohibition, $1 000: citizens' military _trainin $1.500,000; immigration and naturaliz: tions, Department of Labor, $1,150.00 plant quarantine and control, $1,100, 000; expenses, United States courts, $1,100,000; Air Corps of the War De- partment, $1,100.000; soldiers’ homes, $1,100,000; building for the Supreme Court, $1,000,000; Porto Rican Hurri- cane Relief Commission, $1,000,000. Emphasize Certain Items. Certain items emphasized by the President in his budget message, which call for increases for 1931 and to which he directs especially the attention of Congress, he summarized as follows’ “Rivers and harbors, flood relief, and | Boulder Dam.—The estimates herewith contain an increase of $5,000,000 for flood control and $5,000,000 for rivers and harbors over the appropriations for these purposes for the current fiscal| vear. Moreover, the completion this year of the work on the Ohio River will | Telease about $5,000,000 for other river | and harbor work so that, in effect, the increase in the estimates for rivers and harbors is $10,000,000. With regard to the Boulder Dam project authorized byi | ditional $5,000,000 for the public-build- !ing program for which, as stated, an es- the act of Congress approved December 21, 1928, the details have not been com- leted in time to permit of this project {:vm‘ included in the estimates con- tained in this Budget. It is contem- plated to present to Congress at an early date an estimate to cover the ini- tiation of this work. “Departments of State and Justice.— I am asking for considerable increases in the appropriations for these two de- partments for the fiscal year 1931 a: compared with appropriations for the fiscal year 1930. 1 feel that the im- portance of the functions devolving upon these two departments in the con- cuct of our foreign affairs and in law enforcement and the administration of our penal system are of vital concern to the Nation and that both depart- ments require more generous appropri- ations. The increase requested for the Department of State is more than $2,- 443.000, or about 165 per cent, and that for the Department of Justice is more than $4,079.000, or about 14} per cent 1 am satisfied that these increases will rofiect benefits to the Nation greater than can be measured in terms of the increased cost “Indians.—As wards of the Nation the Government has an obligation to the Indians which concerns not alone their present but their future welfare. Fo raise the standard of their living, to calculable loss which results from the destruction of our forests. Such loss | involves not only the timber itself, but | the protection which it affords against | soil erosion and floods. As the custodian of the national forests, national parks. and other public lands the Federal Governmetn is responsible for their pro- tection. The obligations of this steward- ship can not be met within the limits of the present appropriation and it is for this reason that I am asking for an increase to commence a program of more adequate protection of our forests. The protection of our present holdings certainly outweigh in importance the acquisition of further lands which would add to the areas requiring protection. For this reason I am not submitting in this Budget an estimate for the full | $3,000,000 authorized for 1931 for the acquisition of lands for the protection of watersheds. The amount requested | for such acquisition is $2,000,000. “The public-building program author- ized by the act of May 25, 1926, and en- larged by amendments to the original act, is now proceeding at a satisfactory rate of progress. At the outset un- avoidable delays were experienced be- cause of difficulties encountered in ac- quiring sites, it being necessary in some cases to resort to condemnation pro- ceedings in the courts. Many of these difficulties -have been overcome and it is expected that the work will now pro- ceed expeditiously, resulting in the com- E}etlon of 34 new or enlarged buildings the fiscal year 1930 and 40 in the fiscal year 1931. The program calls for a_total expenditure of approximately $300,000,000 in addition to the present proceeds of sale of abandoned property. Individual projects have already been authorized by Congress at limits of cost in excess of $260,000,000. There were brought forward into the fiscal year 1930 appropriation balances aggregating $41,481,099. This is increased by ap- propriations made at the last session of the Congress, amounting to $39.475,500, making the total amount available for expenditure $80,956,599. Of this amount the Treasury Department contemplates spending about $59,500,000 in the fiscal year 1930. The Budget for 1931 carries estimates for public buildings, includ- ing the purchase of additional land in ‘Washington, amounting to $30,000,000. Supplemental thereto an estimate of about $5,000,000 will be submitted at a later date when the Treasury Depart- ment has concluded its survey of new projects which it is desirable to under- take at this time. The appropriation of these amounts will provide the Treas- ury with ample funds to continue the work during the fiscal year 1931. War Department Building. ‘The War Department is also carrying forward a building program, involving an ultimate expenditure of about $118,- 000,000, for the housing of military per- sonnel, made necessary by the need for the replacement of World War tem- porary construction and to provide for the increase in the pre-war strength of the Regular Army. There has already been appropriated for this purpose $37,~ 193,899, and $16,062.860 is carried in the estimates for 1931 with authority to | make contracts for $3,000,000 additional. The estimates for 1931 also carry $3.- 311,000 for technical buildings for the air services of the Army and Navy, and $3,176,000 for other buildings for va- rious' purposes for the Army, Navy, and Panama Canal. For completing the $15,000,000 pro- gram for additional hospital facilities for the Veterans' Bureau, $2,000.000 is provided for liquidating contracts pre- viously authorized by the Congress. New building construction for the In- dian Service has been allowed for a to- tal of $2,303,000. including reservation and nonreservation schools, hospitals, and administration buildings. Provision is made for construction projects at several Federal penitentiaries. For Leavenworth, $22,000 is provided: for Atlanta, $79,000; for McNeil Island, $139,000; and $450,000 is included for continuing the construction of the in- dustrial reformatory at Chillicothe. In furtherance of the $10,000,000 pro- gram for houses and offices for our for- eign representatives, $1,700.000 is in- cluded in these estimates. The annual appropriations under this program are limited to $2,000.000, but the lesser amount has been included in the Budget because of the fact that the amount of the current estimate added to unex- pended balances from prior appropria- tions will be sufficient to carry on the program during the fiscal year 1931. Altogether this Budget carries esti- mates of more than $59.240,000 for the construction of buildings, including the procurement of sites, with a contract authorization for a further expenditure of $3,000,000. To the sum of these two amounts there should be added the ad- | timate will be submitted later in the! year. { National Defen The estimates for direct appropria- | tions for the War and Navy Depart- | ments for 1931 provide a total of $719,- 089,000 for national defense. This 18 exclusive of all items of a nonmilitary character. In addition to the normal maintenance and operation require- ments of these two departments, pro- | vision is made for carrying forward the | Air Service programs of the two serv- ! ices, the housing program of the Army, and the requirements of the Navy with regard to the modernization of old bat- | tleships and the construction of new | | April 29, 1928, providing for the fund- | cruisers to be laid down late in the fis- cal year 1930 and for the commence- ment of the construction of the second and third blocks of five cruisers each, late in the fiscal year 1931. Air Service. Under the Air Service programs for the Army and Navy I am asking for a total of $33,000.000 for the procurement of airplanes, their engines, spare parts. and accessories. In addition to this I am asking for the same purposes for the Coast Guard, Department of Commerce, and the National Advisory Committee for Aeronautics a total of $460,000. With regard to the Army, provision is made for the procurement of the 443 airplanes pertaining to the fourth in- crement of the 5-year program author- ized by the Congress. This program calls for 1,515 planes to be on hand and on order on June 30, 1931, and it is be- lieved that this goal will be reached or closely approached by the funds already appropriated and the amounts esti- mated in this Budget. The present shortage in the grogram is about 40 planes pertaining to prior increments. No amount has been specifically includ- ed in the 1931 estimates to make up this shortage in view of the possibility of its reduction or complete elimination be- fore the final increment is reached. Concerning the Navy Air Service, the last, or fifth. increment of the 5-year program authorized by the Congress will be reached in 1931. This program contemplates about 1.000 planes and 2 lighter-than-air ghips to be on hand and on order at the close of that fiscal year. To accomplish this, provision is made for the procurement of 269 air- planes, including their equipment, and for continuing the work on the 2 lighter-than-air ships now under con- tract. In addition to the amounts which we are spending for the acquisi- tion of aircraft we are also spending large sums for lighting and equipping | ~irways, the inspection and licensing of commercial planes and pilots, and fur- nishing weather reports necessary to the carrying on of aerial navigation. | For these purposes there is included in | the estimates of the Department of | Commerce $8.925.830 and in those for the Weather Bureau of the Department | of Agriculture $1.400,000. It is esti- mated that by the end of tue fiscal year | 1931 there will be about 18.400 miles of | airways lighted and equipped. The French Debt. In the message transmitting the 1930 Budget to_the Congress, the French debt was discussed. A portion of the indebtedness of France, representing surplus war materials purchased on credit. was due to mature during the | fiscal year 1930, unless the agreement of | ing of the entire indebtedness of France to the United States, should be ratified by both France and the United States, in which case this indebtedness would be merged in the general indebtedness of that Government to the United States. In the spring of this year it seemed clear to the Treasury that the Government of France would ratify the French debt agreement prior to August 1, 1929, the maturity date of $400,000,~ 000 face amount of these obligations mentioned in last year's Budget mes- sage. The Congress of the United States was considering the question of recessing for two or three months and the Treasury was faced with the sit- uation that the debt agreement would be ratified by France, that certain ob- ligations of that Government would mature on August 1, that the Congress would not be in session, and that there was no authority on the part of the Executive branch of the Government | other than to submit the obligations on their maturity date for payment. Submitted to Congress. ‘The matter was submitted to the Congress with a recommendation that, in the event the funding agreement was ratified by France, in accordance with its terms, prior to August 1, 1929, the Secretary of the Treasury, with the approval of the President, be authorized ‘0 enter into an agreement with France providing for the postponement of the date of the maturity of the obligations in the principal amount of $400,000,~ 000 from August 1, 1929, to such time as the Congress should approve or dis- approve the funding agreement, but in no event beyond May 1, 1930, provided, however, that France should agree to pay interest on such obligations, the interest so paid to be credited against the annuities first due under the fund- ing agreement. After’ consideration, House Joint Resolution 80, embodying these provisions, was passed by both Houses of Congress, but failed to re- ceive the formal approval of the Speak- er of the House and the President of the Senate before adjournment, conse- quently failing to be enacted into law by August 1, 1929. The French Government ratified the funding agreement under date of July 27, 1929. Relying upon the expression of the sentiment of the Congress on | the matter, as contained in the joint resolution, the Secretary of the Treas- ury, with the approval of the President, an exchange of correspondence agreed with France to extend the ma- turity date of the obligation in question upon the terms and conditions set out in the resolution. ‘The House joint resolution was subsequently enacted into law, being approved by the Presi- dent on October 17, 1929." The ques- tion, therefore, of the maturity of these obligations is temporarily disposed of. The French debt agreement will be sub- | mitted to the Congress in the early part of December. If it receives the ap+ proval of the Congress, all of the obli gations of France representing the pur- chase of surplus war material on credit will be merged, under that agreement, in the general debt of France to the United States. The payments there- after made will conform to the annui- ties specified in trgt agreement. The President L' his budget message Includes a summury of receipts and ex- penditures which are shown in detail in the budget. This summary is exclusive of postal revenues and postal expendi- tures paid from postal revenue. It shows that the actual receipts in the fiscal year 1929 were $4,033,250,225.05, and the actual expenditures were $3,- 848,463,189.63, leaving the excess of re- celpts over expenditures $187,787,035.42, The estimated receipts for the fiscal year 1930 are $4,249263,434 and the | estimated expenditures $4,023,681,900, leaving the excess of recelpts over esti- mates for the current fiscal year $225,- 581,534. The estimated receipts during the fscal year 1931 are placed at $4.- 225,727,666 and the estimated expendi- :#re;’u.xfz.szuuo. leaving the excess ceipts over expenditur - 788,966 penditures $122, These figures include net expendi- tures from the revolving loan fund of the Federal Farm Board to the amount of $200,000.000 in 1931 as compared with an_estimated net expenditure of $75,000,000 for the same purpose in the current fiscal year 1930. Eliminating these figures, for the purpose of co parison, from the estimated expendi- tures of both years shows the estimated expenditures for all other purposes for the fiscal year 1931 to be about $46,000,- 000 less than those for the fiscal year The President points out that the amounts which are shown in this bud- get as representing the receipts, expen- ditures and surplus for the fiscal years 1929 and 1930 differ materially from those contained in the budget for 1930, as follow: For 1929 the estimates in the 1930 bud- get were: Receipts, $3.831,735,661, and th. expenditures, $3,794,745,469, leaving the estimated surplus $36,990,192. The ships authorized by the act of Febru- ary 13, 1929, as well as the light cruis- ers and submarines authorized by prior |law. With regard to the 15 new cruisers authorized by the act of last February, lpmvmnn is made for continuing work on the two crulsers already 1 down and on the aircraft carrier and three Il actual receipts were $4,033,250,225.05 and the actual expenditures $3,848,463,189.62, mlk‘igl the actual surplus $184,787,- 035.42. For the fiscal year 1930 the estimates | 581,534, | ditures over the estimate, $54,000,000, is |is a marked improvement over the | ESTIMATES COMPARED TO 1930 FUNDS Legislative establishment: Senate . House of Rep Architect of the Botanic Garden. i Capitol Total, legislative establishment Exccutive office.......... Independent. establishments Alaska relief funds American Battle mission Arlington mission Board of Mediation. Board of Tax Appea Burcau of Efficiency Civil Service Commission. Commission of Fine Arts Employes’ Compensation Comm: Federal Board of Vocational Educat: Federal Faim Board Federal Oil Conservation Board. Federal Powe- Commission. Federal Radio Commission. Federal Reserve Board Federal Trade Commission. General Accounting Office. Housing Corporation. . Interstate Commerce Commission Estimates of Appropriations, Appropriations, 1931 1930 $3.232,764.00 8,153.394.00 11,084,346.98 173,790.00 2,248,722.00 3,270,000.00 182,050.00 " $26,345.066.98 $422,320.00 15,000.00 1,000,000.00 1,000,000.00 328,380.00 690.000.00 224.330.00 1,362,952.00 9,080.00 4,210.000.00 8.420.400.00 1,900,000.00 22.220.00 187.250.00 168,610.00 2.560.336.00 1,437.460.00 4,181,000.00 298,950.00 10,329.963.00 $2,951,651.60 17,680,361.00 2,506,800.40 173,060.00 2,068,612.00 3,419.000.00 166,960.00 il " s18.866445.00 $447,220.00 15,000.00 600,000.00 2,000,000.00 302,270.00 663,863.00 224,330.00 1,226,862.00 9,080.00 4.,073,326.00 8,799,520.00 151,790,000.00 on ion ,500.00 164,440.00 2,605,741.00 ,271,760.00 4.092,000.00 243,450.00 7,548,825.00 Mount Rushmore National Memorial Commission National Advisory Committee Aeronautics 60,000.00 1,321,000.00 for Porto Rican Hurricane Relief Com- mission ..... Protecting interests of the Unil States in oil leases and oil land: Public buildings and public parks the National Capital. . Public Buildings Commission Smithsonian Institution ‘Tariff Commission.... United States Geograpl oar c United States Shipping Board and Merchant Fleet Corporation. United States Veterans' Bureau. Total, executive office and int pendent establishments. Department of Agriculture Department of Commerce. Department of the Interior Department of Justice. Department of Labor. Navy Department. .. Post Office Departmet 1,000,000.00 ted . . of 100,000.00 3,591,640.00 100,000.00 1,189,683.00 825,000.00 14,660.00 6,396,000.00 589,755,000.00 de- $6 2,888,061.00 ,106,183.00 789,000.00 9,200.00 11,494,000.00 597,375,000.00 43,021,234.00 $801,316,831.00 $165,088.506.00 52.382,270.00 304,302,347.74 32,017,29: 12,219,770 380,392,526.00 $155,720,990.00 58,795,609.00 Postal service payable from postal revenues. . Postal deficiency payable from Treas- ury ... .State Depariment. . Treasury Department. War Department, including Pana Canal District of Columbia. ‘Total, ordinar: service including postal $3 760,470,577.00 '78,500,000.00 17,238,659.14 384,107,000.00 466.626,332.00 47,880,228.00 734,235,725.00 84,000,000.00 14,704,945.68 342,631,715.80 463,452,777.00 44,540,115.00 ma 591,808.86 Reductjon in principal of the public ebt : Sinking fund Other redemptions of the debt. Principal of the public debt. Interest on the public debt. ... $395,624,000.00 239 700,000.00 ¥3535,324.000.00 619,000,000.00 —————— $382,720,000.00 241,174,100.00 $623,894,100.00 656,000,000.00 Total, including Post Office De- partment and postal service Deduct postal service payable fr postal revenues. . i Total payable from the Treasu: $4,590,915,808.86 760.470,577.00 ry.$3,830,445,231.86 $4,710,377,376.26 734,235,725.00 +$3,976,141,651.26 0l *$150,000,000 included in appropriations for 1930 for Federal Farm Board revolving loan fund. No corresponding figure included for 1931, mated surplus $60,576,182. The esti- mates in the budget submitted today carry new estimates of receipts and ex- penditures for the fiscal year 1930—re- ceipts, $4,249,263,434, and expenditures $4,023,681,900, leaving the new estimate of surplus of the fiscal year 1930, $225,- | “The increase in actual receipts for 1929 over the estimates.” the President said, “can be attributed mainly to an unforseen increase in receipts from the individual income tax. On the expendi- ture side, while there were a number of increases and decreases in particular items, the total excess of actual expen- but slightly in excess of the amount paid to the railroads on account of back mail pay, an_expenditure which could not have been anticipated in the esti- mate. “For the current fiscal year 1930 there financial situation as estimated in the | budget for 1930 transmitted to the Con- gress in December, 1928. Compared with the estimate of one year ago the receipts show an increase of about $408,000.000 | and the expenditures about $243,000,000. On the recipt side the increase in the estimate is reflected generally in the in- come tax, $305,000,000, due to an ab- normal increase in the incomes reported by individuals for 1928 and to this ex- ceedingly prosperous business year; miscellaneous internal revenue, $76,~ 000,000, derived in the main from a steady expansion of the tobacco tax and increased stamp-tax receipts; cus- toms, $20,000,000, and miscellaneous receipts, about $7,000,000. On the ex- penditure side the principal items mak- ing up the increase in the estimate are $75,000,000 for the net expenditures from the revolving loan fund of the Federal Farm Board, $77,000,000 for public- debt retirements, $12,790,000 for the postal deficiency, $23,000,000 for the construction and modernization of naval ships, $42,000,000 for the Treasury De- partment, pertaining mainlv to the set- tlement of war claims and the public building program, and $11,800,000 for the Veterans’ Bureau. Tax Reduction ‘With an estimated surplus of over $225,000,000 this year and $122,000,000 next year, it is felt that some measure of reduction in taxes is justified. Since the fiscal year 1921 four reductions in taxes have bee : made. Experience has shown that each reduction in taxes has resulted in revenue in excess of the mathemati- cally computed return under the reduced rates. Undoubtedly an increase in the prosperity of business brouht forth by tax reduction is partly responsible for this experience. Such reduction gives the taxpayer correspondingly more for his own use and thus increases the capital available for general business. Under the present circumstances I am in favor of a reduction in income taxes to be effective on returns for the cal- endar year 1929, which will be due March 15, 1930. Payment under these returns will be made during the last half of the current fiscal year 1930 and the first half of the coming fiscal year 1931, so that the reduction will be re- RECEIPTS AND The receipts and expenditures | | flected in the two years for which we now anticipate a surplus. I therefore recommend that taxes upon incomes for the calendar year 1929 be reduced in the approximate sum of $160,000,000. I would suggest to the Congress that this be effected, as recommended by the Secretary of the Treasury, by reducing by 1 per cent the rate of normal tax on the incomes of individuals and corpo- rations, applicable to 1929 incomes an payable in the calendar year 1930. This will afford, either directly or indirectly, relief to the minimum number of tax- payers. Our effort will be to conduct our financial requirements so as to con- tinue the benefits of reduced taxation for succeeding calendar years. It would not, however, at this time be safe to ex- tend the period of the reduction. A year hence we will know more definitely whether the condition of our finances Jjustifies a continuation or extension of the reduction.” Emphasizing that the estimated ex- penditures for the current and for the coming fiscal years are well within the expected receipts, President Hoover, in concluding his budget message, warns that any proposed additional activities must be carefully scrutinized in order not to jeopardize either the balanced budget or tax reduction. He said: “Our finances are in sound condi- tion. The public debt which at its peak in August, 1919, amounted to $26,- 596,000,000, stood at $16,931,000.000 on June 30, 1929. We are wisely com- mitted to a policy which insures the further progressive reduction of the debt. We will reach in 1931 for the first time the period when the annual reduction required by law in the prin- cipal of the debt will be greater than the annual interest charges' on the debt. We are also committed to the annual amortization of our long term commitments—such as the adjusted service certificate of the veterans of the World War and our liability under the retirement laws affecting civilian personnel. Our estimated expendi- tures for this and the next year are well within our expected receipts. With the recommended reduction in taxes the margin between the two will be con- siderably lessened, but to what extent we do not definitely know to-day. This situation emphasizes the necessity for a careful scrutiny of any proposed ad- ditional activities which would involve a materfal increase in expenditures in order that we may not jeopardize either the balanced condition of the Budget or the continuation of the benefits of reduced taxation.” A synopsis of the estimates of ap- propriations for all branches of the Government, exclusive of the Postal Service payable from postal revenues. shows that there has been appropriated for the fiscal year 1930, $3,976,141,651.26. and the Budget estimates for the fiscal vear 1931 total $3.830445,231.86, or a| decrease of $145,696,419.40. The appropriations_for 1930 include $150,000,000 for the revolving fund of the Federal Farm Board for which no amount is included in the Budget es- timates for 1931, but estimates for 1931 to meet the need for additional funds under the authorization of $500,000.000 contained in the “Agricultural market-| ing act” approved June 15, 1929, will be transmitted when requirements for such additional funds are more defi- nitely known. When this item of $150,- EXPENDITURES shown in detail in the budget are summarized in the following statement: Summary (exclusive of postal reve from postal Receipts: Estimated. 1931, Customs Income ta: Miscellaneo enue. Miscellan $602,0¢ 640,0 523,7. nues and postal expenditures paid revenues.) Actual, 1929, $602,262,786.17 2,330,711,822.66 Estimated. 1030 $602,000,000 2,480,000,000 00,000 635,000,000 607,307,548.98 27,666 532,263,434 492,968,067.24 00,000 Total recelpts.........$4,2257 Total expenditures (including reduction of the public debt required by law to be made from ord! re- ceipts) +$4,102,0: 27,666 $4,249,263,434 $4,033,250,225.05 38,700 $4,023,681,900 $3,848,463,189.63 in the 1930 budget were: Receipts, $3.- 841,295,829, and the estimated expendi tures $3,780,791,647, leaving the esti- ! Excess of receipts $122,71 88,966 $225,581,534 $184,787,035.42 AR - . 4, 19290 1 000,000 is taken into account there is a net increase of $4,303.580.40. Outside of the departmental service, the estimates for the various branches of the Federal service are summarized as follows: Senate. Appropriated for 1930, $2,951,651.60: estimated additional amount required for 1930 to meet the provisions of the “Legislative pay act of 1929 approved June 20, 1929, $285,640: total for 1930, $3,237.291.60; estimate for 1931, $3,232,- 764; decrease, $4,527.60. House of Representatives. Appropriated for 1930, $7,580,361; es- timated additional amount required for 1930 to meet the provisions of the “Leg- | islative pay act of 1929" approved Junc 20, 1929, $575,137; total for 1930, $8,155,498; estimate for 1931, $8,153,- 394; decrease, $2,104. Legislative Miscellaneous. Appropriated for 1930, $166.960; esti- mated additional amount required for 1930 to meet the provisions of the “Leg- islative pay act of 1929” approved June 20, 1929, $15,090; total for 1930, $182,- 050; estimate for 1931, $182,050. Architect of the Capitol. Appropriated for 1930, $2,506,800.40; | estimated additional amount required for 1930 to meet the provisions of the “Legislative pay act of 1929” approved | June 20, 1929, $34,775.38: total for 1930, $2,541,575.78; estimate for 1931, $11,084,346.98; increase, $8,542,771.20. The ' 1930 appropriations provided $10,000 for preliminary plans and esti- mates for completion of the Senate Office Building, $545,000 for new equip- ment for the Capitol power plant, $600,- | 000 for a site for additional building for the Library of Congress, and $300.000 toward the construction of buildings for the Botanic Garden. The Budget estimates for 1931 include $3.614,668 for enlarging the Capitol Grounds, $2730,350 toward completion | of the Senate Office Building, $1,500.- | 000 to continue construction of build- ing_for the House of Representatives, $365,425 for construction of steam lines from the Capitol to the power plant. $30,000 for care of buildings acquired on site for addition to Library of Con- gress and preliminary plans for new buildings, $576,398 for completion of building for Botanic Garden. $1,000.000 toward the construction of the building for the Supreme Court. There is a net increase of $175,930.20 for maintenance, | repairs. improvements, and miscella- neous items. Botanic Garden. Appropriated for 1930, $173,060; Budget estimate for 1931, $173,790; in-! | crease, $730. This is for increases in salaries. Library of Congress. I | Appropriated for 1930, $2,068,612; | | estimate for 1931, $2,248,722; increase, | | s180.110. |~ There is sn increase of $68.600 for | | additional employees, $13,410 for pro-!| motions, $45,000 for purchase of books and papers, $23,000 for printing and binding, and $1,900 for custody and maintenance of ‘the Library Building. 1t is estimated that expenditures from | gifts and trust funds will increase from | $205,000 in 1930 to $232,700 in 1931. Government Printing Office. Appropriated for 1930, $3.419.000; estimate for 1931, $3,270,000; decrease, $149.000. There is an increase of $51,000 in general expenses of the Office of Super- intendent of Documents to print the document_catalogues required by law, but due to an appropriation in 1930 of $200,000 for equipment for the new ad- dition to the Government Printing Office which is not included in the 1931 estimates, the result is a net decrease of $149,000. . Executive Office. | { Appropriated for 1930, $533,120; de- | duct amount_transferred to Treasury | Department for White House police, | $85.900; available for 1930. $447220: | budget ‘estimate for 1931, $422,320; de- | crease, $24,900. | The decrease of $24,900 is accounted | for by a decrease of $36,000 represent- | ing the items provided in 1930 for spe- | | cial ‘works or purposes not needed in 1931, and an increase of $2,600 in sala- ries and $8,500 in contingent expenses. Independent Office: Alaska Relief Fund. Appropriated for 1930, $15,000; bud- get estimate for 1931, $15,000. This is an_indefinite appropriation of | 10 per cent of the receipts collected out- | side of incorporated towns in Alaska. | The funds are divided equally among the four district judges to be used in | caring for indigent and incapacitated | persons. On July 1, 1929, there was an unexpended balance of $4.261.46 to the credit of this fund for redistribution. Battle Monuments Commission. Appropriated for 1930, $600,000; previous continuing appropriations, $2,- 695,750; total, $3,295,750; budget esti- mafe for 1931, $1,000,000. ‘These are continuing appropriations. The estimate for 1931 is for continuing construction of the memorials upon battle fields and in cemeteries in Europe in commemoration of the services of the American Expeditionary Forces, as authorized by the act of March 4, 1923. The original limitation of $3,000,000 was increased by the appropriation act for the fiscal year 1930 to $4,500,000. Arlington Bridge Commission. Appropriated for 1930, $2,000,000; previous continuing appropriations, $7,~ 800,000; total, $9,800,000; budget esti- mate for 1931, $1,000,000. ‘These are continuing appropriations. The authorized appropriation, includ- ing the bridge and its approaches, is $14,750,000. Board of Mediation. Appropriated for 1930, $302,270; re- appropriated from unexpended balance, $46,000; total available for 1930, $348,- 270; budget estimate for 1931, $328,380; decrease, $19,890, ‘This decrease is made possible by economies effected in the item for sala- ries and expenses. Board of Tax Appeals. Appropriated for 1930, $663.863; un- expended balance of appropriation for 1928 reappropriated, $62,000: budget | estimate for 1931, $690,000; decrease, | $35.863. ‘There is a decrease in the amount for | salaries of $2,930, and for miscellaneous erpenses, $37,933; and an increase for | printing and binding of $5,000. ! Bureau of Efficiency. ! Appropriated for 1930, $224,330; bud-j gct estimate for 1931, $224,330. | Civil Service Commission. i Appropriated for 1930, $1,226,862;, reappropriated from unexpended bal- | ance of 1928, $25,700; apportionment of deficiency appropriation, $146,150; total | 1-: 1930, $1,398,712; budget estimate for | 1931, $1,362,952; decrease, $35,760. In the deficiency act of March 4, 1229, the commission was given $200,- 000, available for 1929 and 1930, for the | ! specific purpose of finishing its work of | | securing qualified personnel for the | | Prohibition Unit. By December 1, 1929, an eligible register will be completed, | from which all vacancies may be filled. | Therefore, while a decrease for 1931 is | shown as compared with the available appropriations for 1930, if the compari- son is made with the normal appro- priation for 1930, an increase of $110.- 390 has been given. The increases are up as follows: For additional personnel, $99,390; for traveling ex- penses, $10.000; and for contingent ex- | penses, $1,000. | Commission of Fine Arts. Appropriated for 1930, $9,080; budget ' egtimate for 1931, 89,080, ' There is -{n increase in salaries from | { | work projected by the board is only | balance. | 82! 63; increase, $2,116,138. | “General | and invested during the fiscal year 1931, This item has heretofore been included year, for the first time, in the estimate of appropriations in accordance with |cally for this purpose, and a reduction definite appropriations. 3,830,445,231 FOR 1931 SURPLUS OF $122,000,000 AT END OF YEAR IS SEEN President Delays Asking New Funds for Farm Board—Building Set Forth. $4,280 to 85720 to provide a stenog- rapher-typist at $1440. There is a decrease in printing and binding from $1,700 to $260, the commission not re- quiring funds in 1931 for the printing of a report. Employees’ Compensation Commission. Appropriated for 1930, $4,073,326; re- appropriated from unexpended balance 1928, $4.000; total for 1930, ll.077‘326:1‘ budget estimate 1931, $4,210,000; in-| crease, $132,674. The amount estimated for 1931 pro- | vides for an increase of $100,000 in the | compensation fund due to an increase | in the number of claims filed and to| the increased cumulative cost of death and permanent disability claims; foraddi- tional personnel, $24,904, due to the in- crease in work connected with the ad- ministration of the three acts admin- istered by the commission; for medical | examinations, travel and miscellaneous expenses, $12,770, and a decrease of $5,~ 000 for printing and binding. Board for Vocational Education. Appropriated for 1930, $8,799,520; | budget estimate for 1931, $8,420,400; decrease, $379,120. | The figures for 1931 involve a de-| crease of $779,120 for the vocational | rehabilitation of persons disabled in | industry. This decrease is due to the | expiration of the law authorizing an appropriation for this purpose. There is an increase of £400.000 for further co-operation with the States in the de- | velooment of agriculture and home | economics. Federal Farm Board. Appropriated for 1930. $151,790,000; | budget estimate for 1931, $1,900,000; | decrease, $149,890,000. There 'is an actual increase of $110,- 000 for the Division of Co-operative Marketing, which was transferred to the hoard on October 1, 1920, from the De- partment of Agriculture. The appropria- tions for 1930 include an item of $150,- | 000,000 for the revolving fund. The Budget estimate for 1931 does not in- clude any amount for this purpose, but estimates for 1931 to meet the need for additional funds under the authoriza- tion of $500,000.000 contained in the | “Agricultural marketing act” approved June 15, 1929, will be transmitted when | requirements for such additional funds | are_more definitely known. i This accounts for the net decrease of $149,890,000 shown above. 0il Conservation Board. Appropriated for 1930, estimates for 1931, $22,220; $22.220. The board has been operating through | an appropriation of $50,000 made in | the first deficiency act, fiscal year 1925, approved January 20, 1925, and sub- sequent extensions. ‘The balance of this appropriation will be exhausted in the | course of the fiscal vear 1930. The | : budget | increase, 1 partially completed and this appropria- tion is recommended for further prose- cution of the work. Federal Power Commission. Appropriated for 1930, $179,500; bud- | k(_‘ltqg%timlte for 1931, $187,250; increase, | The increase of the Budget estimate for 1931 consists of $5,500 for salaries of additional ‘employes required in connection with the auditing activities of the commission, $250 for miscela- neous expenses, and $2,000 in the amount estimated to be required for payments to States of their portion of the receipts from licenses issued under the Federal water power act. Federal Radio Commission. Appropriated for 1930, $164,440; bud- get estimate for 1931, $168,610; increase, $4,170. ‘The net increase of $4,170, further augmented by moderate reductions | made possible in miscellaneous items of | expenditure below the schedule for 1930, is to provide engineering personnel. Federal Reserve Board. Appropriated for 1930, $2,605,741; budget estimate for 1931, $2,560,336; | decrease. $45,405. : This is a permanent indefinite ap- propriation, and the 1931 Budget esti- mate is an estimate of the probable ex- penditures for that year. Federal Trade Commission. Appropriated for 1930, $1,277,760; reappropriated from unexpended bal- ance, $9.729; total appropriated for 1930, $1,287,48: expended from the above during 1929, $44.803: net amount avail- | able for 1930, $1,242,686; budget esti- mate for 1931, $1,437,460; increase, $194,774. The 1930 appropriation act reappro- priated $12,000 of the 1928 unexpended This balance later proved to | be $9,729, as shown above. | ‘The increase for 1931 is to continue an investigation of power and light supplied by public utilities, directed by Senate Resolution 83, first session, Seventieth Congress, for which $85,- 000 was appropriated for 1929 in the | deficiency act of May 29, 1928, and an investigation of chain-store systems, directed by Senate Resolution 224, first session, Seventieth Congress. For these Investigations $262,000, to be immediate- ly available, was included in the 1930 appropriation. General Accounting Office. Appropriated for 1930, $4,092,000; unexpended balances of appropriations for 1928 and 1929, $48,800; transferred from Interor Department appropria- tioms, $5,100; total, $4,145900; budget estimate for 1931, $4,181,000; increase, $35.100. There is an increase in salaries from $3,915,600 to $3,950,000, involving an increase in personnel of 24. Printing and binding is increased from $30,000 to $93.000, but there is approximately the same decrease in the contingent ex- pense appropriation, the reduction re- | sulting from the transfer of $63,000 to | printing and binding for the purchase of tabulating cards heretofore bought | from the contingent appropriation. Housing Corporation. Appropriated for 1930, $243,450; re- | appropriation of 1928 unexpended bal- ance, $154,500; total for 1930, $397,950; budget estimate for 1931, $208,950; total decrease, $99,000. The decrease is made up as follows: For the administrative work in the ! fleld in the collection of moneys due on property gradually being liquidated, $1,000; Government hotels, $98,000. The large reduction here is due to the tearing down of the Capitol group of | buildings, leaving only the Plaza group for housing of Government employes. Interstate Commerce Commission - -ppropriated for 1930, $7,548,825; re- appropriation of 1928 unexpended bal- ance, $665,000; total for 1930, $8,213, 25; budget estimate for 1931, $10,329, Of the increase, $1,000,000 is due to an estimate of appropriations under the railroad contingent fund,” which it is estimated will be received only in the statement of receipts and 11 of the property of earriers. This will enable the commission to make mate- rial progress in bringing the valuation to date in accordance with the - ciples laid down in the recent decision of the Supreme Court in the “O'Fallon” case; an increase of $86,620 for the general work of policing the accounts of carriers which are greatly in arrears; of $14345 for the inspection of loco- motives; and $7,860 for safety device inspection. Rushmore Memorial Commission. Budget estimate for 1931, $60,000. This commission, created by the act of February 25, 1929, is for the purpose of completing the carving of the Mount Rushmore National Memorial on Rush- more Mountain in the Black Hills of South Dakota to commemorate the foundation, expansion, preservation, and unification of the United States. There s an authorization of $250,000, of which amount $100,000 was appropriated for the fiscal years 1929 and 1930, Advisory Committee for Aeronautles. Appropriated for 1930, $1,292,200; made available by reappropriation of the unexpended balance, fiscal year 1928, $7.800; appropriated by second deficiency act, 1929, apnortioned to the fiscal year 1930, $208,000; total available for 1930, $1,508,000; Budget estimate for 1991_1}; tl.zfi.flgo:rdfl‘rells!. $187,000. e estimate for 1931, compared with the total availability for 193‘0), involves a reduction of $208,000 for seaplane channel and $30,000 for heating plant, | not_required for 1931, and a reduction of $150,000 in the amount required for the construction of the large wind tun- nel, total reduction, $388,000: and an increase of $60,000 for the construction of a hangar to replace the present old war-time hangar, which is to be razed to make room for building construction by the War Department, and $141,000 for additional material, equipment, and personnel necessary to enable the com- mittee to carry forward its work in re- search, including the operation of the large wind tunnel and seaplane chan- nel. now under construction; total in- crease, $201,000. Deducting the total increase of $201,000 from the total de- crease of $388,000 results in a net de- crease of $187,000. Porto Rican Relief Commission. Budget estimate for 1931, $1,000,000. Public_ Resolution 74, approved De- cember 21, 1928, authorized the appro- priation of $8,150,000 for the relief of Porto Rico by reason of damage suf- fered from the hurricane of September 13 and 14, 1928. A total of $7,150,000 was appropriated by the first and sec- ond deficlency acts, fiscal year 1929, both approved March 4, 1929. The Budget estimate for 1931 provides the remainder of the amount authorized by the act of December 21, 1928, namely, $1.000,000, all of which is required for the purpose of making loans to indi- vidual coffee and coconut, planters, fruit growers or other agriculturists in the island of Porto Rico. Public Buildings and Public Parks. Appropriated for 1930, $2,888,061; un- expended balances of appropriation for 1929, $87,184.24: transferred from W_r Department ap av;ul::l)']ge ;or llflfil!& $2,9° . Budget estima for 1, $3,591,640; increase, 85%4.7331.711 i n salaries there is an Increase from $2,025611 to $2422250 as follows: Care of Southern Railway Building, $86.639; care of new Internal Revenue Building, $300,000; for promotions with- in grades, $10,000. There is an increase of personnel involved of 357. In gen- eral expenses there is an increase from $947,841 to $1,165,940, as follows: Main- tenance of Southern Rallway Building. $21,800; maintenance of Internal Reve- nue Building, $200,000; rent, $2,000; emergency repairs, $5,000; new cables, Washington Monument, $3.500; repairs to Army Medical Museum Building, $9,- 000: repairs to Winder Building, $20,- 000; repairs to elevators, $5,000; repairs to boilers, $4,500; repaving West Exec- utive Avenue and State Place, $35,000; total, $305,800. The decreases are, in- stallation of boilers, $40.000; demolition of temporary building 7, $5,000; level- ing floors, $10,000; miscellaneous main; tenance, rent, repairs to buildings, etc., $32,701; total, $87,701, leaving a net in- crease in general expenses of $218,099. Public Buildings Commission. . Budget estimate for 1931, $100,000; increase, $100.000. This commission has been operating through an appropriation of $260,000 carried in the executive and independ- ent offices appropriation act for the fis- | cal year 1927, approved April 22, 1926, which is nearly exhausted. Smithsonian Institution. Appropriated for 1930, $1,106,183; re- appropriation of 1928 unexpended bal- ance, $1,390; total for 1930, $1,107,573; Budget estimate for 1931, $1,189,683; in- crease, $82,110. The amount for 1931 involves an in- crease for personnel of $19,150; of $2,000 for the purchase of an electrical pump for fire protection: $25,000 for the construction of a gallery to house the collection of mammals; $7,000 for fireproofilng a temporary building in which is housed a valuable collection of aircraft; $1,000 for the purchase of additional reference books to classify the collections: $20,000 for the adminis- tration, maintenance, and exhibition in New York of the Gellatly Art Collec- tion. By the terms of the deed of gift, this collection, which is valued at sev- eral million dollars, is to remain in New York City and be maintained by the Nation for a period of four years. There is an increase of $4.000 for printing and binding, and $3960 for miscella- neous expenses. Tariff Commission. Appropriated for 1930, $789.000; re- appropriated unexpended bal propriation for 1928, $36,000; 1930, $825.000; Budget estimate for 1931, $825,000. . The aggregate amount for the serv- ice of the Tariff Commission remains unchanged. United States Geographic Board. Appropriated for 1930, $9,200; Budget estimate for 1931, $14,660; increase, $5,460. This increase is for the fi_;.”“’ of prln!ltnfi lh;eedetlsi‘ar'l::l‘ the d. No report has n prin or 10 the decisions being l?l leaflet Iol’m.m Shipping Board and Fleet Corporation. Appropriated for 193 made available by re: the unexpended balance $229,96¢ Prier . total available for 1930, $11,- X Budget estimate for 1031, $6.396,000; decrease, $5,327,964. The Budget estimates for 1931, com- pared with the total available for 1930, carry a net reduction of $5327,964. This reduction is made up of an esti- mated reduction in the deficit pertain- ing to the operation of ship lines and activities, $1,894,850, of which $640,535 pertains to the sale or anticipated sale of ship lines during 1930 and 1931; a reduction in the annual expense of maintaining inactive (or spot) vessels, $1,203,150; a reduction in the amount able for reconditioning and operat- ing ships for carrying coal to foreign expenditures. It is also included this the policy of having the appropriation estimates reflect the amounts of the in- An increase of $1,007,313 is provided for the valuation - ports, $1,729,964, no amount bel in- cluded in the Budget for 1931 i in the estimate for direct ap fation construction, and mr-mnmoo.m the Budget containing provision for the (Continued on Page M, Column 1)