Evening Star Newspaper, September 30, 1935, Page 5

BUSINESS GAINS (ITED BY FARLEY Says G. 0. P. Seeks Votes While Platform Is Still Unknown. By the Associated Press. Business gains are cited by Post- master General Farley as an answer to critics of Roosevelt administration policies. “Look at the market reports,” he #aid last night in a radio address in which he contended the 1936 cam- paign issue was whether President Roosevelt had done his “job.” Republican leaders, Farley asserted, are asking for votes “for a candidate yet unnamed, with a platform yet un- written—when they do not even know if the Republican party of 1936 is going to be the same old reactionary organization of the past or if it will declare some pale imitation of the program of the party in power.” The Republicans were challenged to propose a substitute for the A. A. A., the Farm Credit Administration or the works-relief program. Declaring the only “political ques- tion of adequate concern” was whether the President had done his “job” since taking office, Farley said: “With bank clearings in the 22 principal cities of the United States up to $5,040.000,000 this week, as against $4,200.000,000 a year ago; with the sale of farm products at the high- est point in a generation, with our income taxpayers reporting incomes $5000.000,000 ahead of what they were, with the movement of securities on all markets of the country 36 per cent higher last month than in July and businesses of every sort in every Section showing profits instead of losses—it is evident that the question must be answered in the affirmative.” Farley said “so far as I know,” Mr. Roosevelt has never declared his pur- pose of secking a constitutional amendment (o limit the Supreme Court's authority. He declared Thomas Jefferson had been charged with seek- ing to undermine the Constitution, adding that “recent political develop- ments are strangely reminiscent of that sort of political campaigning.” Roosevelt (Continued From First Page.) {ncluded Marriner S. Eccles of Utah, governor of the Federal Reserve Board; Senator McCarran and Rep- wesentative Scrugham of Nevada, Representative Murdock of Utah, Representative Johnson of Oklahoma, Dr. Elwood Mead, commissioner of réeclamation; Harry L. Hopkins, works progress administrator; Turner Bat- tle, executive Assistant Secretary of Labor, and the presidential secre- tarial staff. After a motor ride across the 1,180- foot crest of the da mto the Arizora side and inspection of the huge new structure, Mr. Roosevelt departs in the afternoon for Los Angeles, where | he will speak informally tomorrow afternoon at the Coliseum. Here President Roosevelt saw one of man's mightiest projects in one of Pature's wildest, most desolate fast- Desses. Recently completed, the dam is the Central unit of a $385,000,000 pro- gram. It will provide, at maximum, &nough electric pawer to supply one- third of the homes in America, will yeclaim 2,100,000 acres, furnish ade- quate irrigation for millions more, eontrol floods and solve the water supply problem of a dozen Southern California cities. Included in the $165,000,000 dam project is the all-American canal for frrigating Imperial Valley, which pro- duces $100,000,000 in foodstuffs and cotton annually. A closely related project is the $220,000,000 aqueduct now being constructed from the Colo- ‘tado River near Parker, Ariz, to Lios Angeles and nearby cities. g Schedule Is Bettered. Two years will be required to com- plete installing the 15 power units that will furnish a maximum of 1,835,000 horsepower. Above the fammoth structure—built far ahead of schedule by six firms that pooled hids—the world’s largest man-made e will lie, 115 miles in length. # Boulder City is a “model town” Built by the Government for the 3,000 dam workmen and executives. « Originally called Boulder Dam, the name of the structure was called *“Hoover Dam” in 1930, a little more than a year after work began, by Ray Lyman Wilbur, then Sacretary of the Interior. Secretary Ickes €hanged the name back to Boulder Dam. : Bu;]get % {Continued From First Page.) - Industry has shown its strength against the current of seasonal slack- mess and output and trade are ex- panding. Capital market conditions are favorable. Crops are expected to e larger this season and to yield farmers more income than in the past # Estimating that the deficit for this fiscal year, ending June 30, 1936, would e $300,000,000 less than in the pre- wious twelvemonth,” he added: » “This reduction can be realized, Rowever, only in the event that no new | flems of expenditure are added to the Sear's program.” = This was taken in spme quarters as & reference to the $2,000,000,000 sol- diers’ bonus, -4 Estimate of Revenues. »The document estimated that reve- nues for the present (1936) fiscal year Would be $4.470,000,000. This com- res with $3,991,000,000 estimated in uary, $3,800,000,000 collected in 1935 and $3,115,000,000 in 1934. « Expenditures were set at $7,752,000,- @00, as compared with January’s esti- mate of $8,520,000,000. The total spent last year was $7,375,000,000 and in 1p34 it was $7,105,000,000. ;Last January the President esti- mated that on June 30, 1936, the public debt would stand at $34,239,- 000,000, as against $28,700,000,000 last June. The revised estimates change the $34,239,000,000 -to $30,723,000,000, deducting debt retirements of 51,000,000 and $550,000,000 of na- nal bank note retirements out of ld profits. Anticipates Criticism. Possibly in answer to criticism that e character of the work-relief proj- ebts would require big appropriations for their completion in future years, the Chief Executive said that “while some of the heavier projects will con- tinue under construction beyond June 30, 1936, the major part of the funds will be expended for improvements that will permit quicker employment.” [ THE EVENING . STAR, WASHINGTON, . D.. 0, Text of “Budget Summation” Made by President UP-TO-DATE ESTIMATES OF FEDERAL INCOME AND EXPENDITURES ARE PRESENTED IN STATEMENT. By thy Assoclated Press. ‘The text of President Roosevelt’s statement on the summation of the 1936 budget presenting up-to-dste estimates of Federal income and expenditures: In my budget message of Janu- ary 3, 1935, I made the following statement: “In order to promote more satis- factory methods of budgetary control in the Government, I pro- pose this year to inaugurate the policy of having a summation of the budget prepared for publica- tion immediately after the Con- gress has acted on all financial matters. This summation will pe ready on or before July 1. unless the Congress is still in session. It will be presented along the lines of the general budget summary and supporting schedules, including statements Nos. 1 and 2, as shown in the budget. It will exhibit the revenue estimates, so revised by the Treasury as to reflect any changes in the economic situation during the preceding six or seven months and also any revisions made by the Congress in the tax laws. It will provide a complete summary of all appropriations and expenditure authorizations made by the Congress and related estimates of expenditures. Lastly, it will indicate the need for ex- ecutive or administrative measures in controlling the execution of the budget -during the fiscal year 1936.” Economic Conditions and Changes Are Reviewed Briefly. Since so great a part of the Federal program is influenced by economic conditions, it is eppro- priate to review briefly the changes which have taken place during the past fiscal year. At the opening of the year in July, 1934, and despite noticeable improvement during the preceding 12 months, business was in slight decline because of accumulation of inventories, and because of the drought which affected seriously a vast area of agricultural land. There was a lag in the activities of heavy industries. Some pick-up was apparent in the Fall and sub- sequently output expanded to a level higher than that of the pre ceding Winter. During the Spring of 1935 normal rainfall assured favorable crop conditions, and ex- penditures for durable goods and equipment showed a steady in- crease. Automobiles, electrical ap- pliances and household furniture were sold in much larger quanti- ties and demand for farm and in- dustrial machinery increased cone siderably. Automobile output dur- ing the first six months of 1935 almost equaled that of the like period in®1929. Expansion also occurred in the construction of buildings other than public works, following three years of relative inactivity. The burden of private debt and of interest payments was light- ened - during the year both by a further decline in the volume of indebtedness and by a general re- duction in rates of interest. Mort- gages on farm and urban houses were being refunded at lower rates, partly by Government agencies or as a result of Government policy. There was a gradual improvement in real property values and some revival in demand for mortgages by private investors. In the capi- tal market a large volume of se- curity offerings for refunding pur- Poses was sold during the Spring and Summer. Cites Pay Roll Increase And Dividends by Corporations. Industrial pay rolls were nearly 8 per cent larger than in the pre- ceding fiscal year, and dividends paid by representative corporations increased. Prices for agricultural products were higher, and farm income for the country as a whole, including rental and benefit pay- ments, increased nearly 20 per cent. The increases noted are to be compared with an increase of about 4 per cent in the cost of living. On the whole, economic condi- tions were decidedly better for the fiscal year just closed than in the preceding year, and of course vastly better than in 1933 and still better than in 1932. We have wit- wessed larger distribution of goods to consumers and a reduction in plant inventories; a closer rela- tionship between industrial and agricultural prices; further reduc- tion of the burden of privaté in- debtedness; an increase in na- tional income. At this date ine ventories are low. Industry has shown its strength against the current of seasonal slackness, and output and trade are expanding. Capital market conditions are fa- vorable. Crops are expected to be larger this season and to yield farmers more income than in the past year. Fiscal Year Expenditures Cited as $7,375,825,166. Total expenditures of the Gov- ernment for the fiscal year ended Juae 30, 1935, as shown in the attached summary table, amounted to $7,375,825,166, against an esti- mated expendityre shown in the budget of last January of $8,581,- 069,026. Actual spending during * the year was less than the esti- mate, therefore, by $1,204,243,860. Of this difference Jbetween esti- mated and actual expenditures, nearly a billion dollars was for account of recovery and relief, and some two hundred millions for ac- count of regular Government agencies. For recovery and relief there was expended $4,262,257,208, against an estimate of $5,259,802,- 852. It may be pointed out here that when the bidget was made up [ 7171777 Summary of Budget By the Associated Press. A tabular presentation of President Roosevelt’s revised estimates of the Government’s financial prospects in the current fiscal year of 1936, as compare! year, which closed last June 30: New 1936 estimates, ‘Treasury accounts: L. Receipts: 1. Revenues (excluding postal revenues) : Internal revenue.. Customs Miscellaneous ... d with original estimates and actual figures for the 1935 fiscal Original 1936 Actual 1935 estimates. figures. -$3,858,402,000 $3,443,900,000 $3,277,690,027 353,000,000 155,007,335 298,000,000 171,064,834 343,353,033 169,002,670 Total revenues. 2. Realization upon assets $4,366,409,335 $3,912 964,834 103,939,805 $3,790,045,732 78,939,805 10,421,469 ‘Total receipts. $4.470,3497140 $3,991,904,639 $3,800,467,201 II. Expenditures: 1. Legislative, judicial and executive . Civil departments and agencies __ - . National defense - . Veterans’' pensions and benefits . Debt charges: Interest . Retirements . Refunds _._ - . Recovery and relief . Supplemental items®*.. $37,925,000 706,583,000 700,000,000 710,000,000 745,000,000 551,000,000 47,000,000 - 4,154,824,000 100,000,000 $36,595,000 $35,719,149 788,057,169 792,484,265 498,946,007 533,597,243 704,885,500 605,573,274 875,000,000 636,434,000 64,946,200 4,582,011 475 40,000,000 820,926,353 573,558,250 45,247,679 4,262,257,208 ‘Total expenditures..$7,752,332,000 3,.281,982,860 $4,528,508,970 $3,575,357,963 III. Deficit 1V. Means of financing deficit: 1. Decrease In working balance (general and special accounts)_.. $158256,138 3,123,726,722 2. Borrowingst $8,520,413,609 $7.375,825,165 $739.885,188 $1,262,632,853 3,788,623,782 2,312,725,110 Total means financing $3,281,982,860 $4,528,508,970 $3,575,357,963 *These items estimated to cover the necessary supplemental appro- priations to be submitted to next Congress. Includes borrowings offset by statutory debt retirements included in deficit. last Winter it was expected that the Reconstruction Finance Corp. would expend on all accounts, ex- cept relief, during the then current year the net sum of $556,000,000, whereas the operations of the cor- poration actually resulted in a net receipt of $107,000,000, a difference between estimates and actual ex- penditures of $663,000,000. Recov- ery and relief expenditures by other agencies were less than estimates by some $334,000,000 Expenditures for the operation and maintenance of regular de- partments and establishments of the Government (including refunds of taxes erroneously collected, but exclusive of the service of the pub- lic debt), were estimated last Jan- uary in amount $1.913,700,174. Actual expenditures for the same purposes were $1,719,083,353. Public Debt Interest Falls Under Estimate. For interest on the public debt there was expended $820,926,353, as compared with an estimate of $835,000,000; while expenditures for statutory debt retirement were $573,558,250 against an estimate of $572,566.000. Treasury reports at June 30 showed total receipts for the year in the amount of $3,800,467,202, or approximately $89,000,000 above the estimate of $3.711,650,688. Internal revenue receipts, including proces- sing taxes on farm products, amounted to $3,277,690,028, as against an estimate of $3.197.466,- 507. Customs receipts were $343,- 353,033 against an estimate of $287,000,000. Miscellaneous reve- nue, including realization upon es- sets, amounted to $179,424,140, whereas the estimate was $227, 184,181. The deficit at the end of the year 1935 was $3,575,357,964. Deducting $573,558,250 for statutory debt re- tirements, the resulting net deficit was $3,001,799,714. This net deficit, after subtracting the decrease in the general fund balance, the ex- cess of trust fund receipts over trust fund expenditures and the amount of retirement of national bank notes from gold increment, accounts for an increase of the total outstanding gross public debt {from $27,053,141,414 at the close of the fiscal year 1934 to $28,700,892,~ 624 at the close of the fiscal year 1935. In other words, it is worth noting that the net increase in the actual gross public debt was $1,647,« 751,210, The total expenditure require- ments for the fiscal year ending June 30, 1936, are esitmated at $7,752,332,000, of which $2,301,- 508,000 is for account of the regu- lar establishments of the Govern- ment, including refunds of receipts. Expenditure for the service of the public debt is estimated in amount $1,296,000,000, and $4,154,824,000 is set aside for recovery and relief. Regular Establishments Show Expenditure Increase. The estimated expenditures for the regular establishments for the fiscal year 1936 are $582,425,000 greater than expenditures for 1935, due largely to the increase in the Government’s contributions to the civil service retirement and dis- ability fund and the adjusted service certificate fund; restora- tion of employes’ compensation; enactment bf legislation granting a 40-hour week to postal employes; appropriation of an amount equal to 30 per cent of customs receipts for benefit payments on agricultural exports; increases in pensions and compensation to our war veterans; the inclusion of substantial public works program in regular ex- penditures rather than under re- covery and relief expenditures, and the increase in appropriations for national defense. The amount esti= mated to be expended for recovery and relief is slightly less than was spent for this purpose last year and is considerably under the esti- mate in the 1936 budget. The work relief program, de- signed to put 3,500,000 men on useful work, has moved more slowly than I hoped, but is now accelerating with reasonable assure ance of providing adequate em- ployment during the coming months. While some of the heavier projects will continue under con- struction beyond June 30, 1936, the major part of the funds will be expended for improvements that will permit quicker employment. Tax Receipts Reflect Encouraging Economic Factors. ‘The definitely encouraging factors in the economic situation set out above gre reflected and confirmed in the Treasury receipts of Federal taxes. Tax receipts for the fiscal year 1935 showed an upward trend. Likewise, recently estimated re- ceipts for the current year for cast total collectirns from origi= nal sources of more than $478,- 000,000 in excess of the amount set out in the 1936 budget last Janu- ary. Legislative acts ‘during the last session of Congress which affect Federal revenue in the fiscal year 1936 are (1) the extension to June 30 or July 31, 1837, of title 1V, as amended, parts I, II, III and IV of title V, as amended, of the revenue act of 1932; (2) “an act to amend the agricultural ad- justment act”; (3) “an act to levy an excise tax upon carriers and an income tax upon their employes, and for other pur- poses”; (4) “the bituminous coal conservation act of 1935"; (5) “the revenue act of 1935,” and (6) “the social security act.” The bi- tuminous coal conservation act is not expected to provide signifi- cant revenue in the fiscal year 1936; and, with minor exceptions, the revenue act of 1935 and the social security act do not affect the revenues until the fiscal year 1937. Estimated receipts from all sources for the currenc fiscal year amount to $4,470,349,140, as set out in detail in supporting sched- ule numbered 1 attached. New Tax Sources Needed If A. A. A. Attack Sustained. It will be understood that esti mates of receipts contemplate con- tinued collection of processing taxes. If the attack which has been made upon this act is sus- tained, we will have to face the problem of financing existing con- tracts for benefit payments out of some form of new taxes. The deficit for the fiscal year 1936 is forecast at $3,281,982860. IF YOU SUFFER WITH Kidney Trouble You can restore kidneys to nmormal func- tloning by following the b ect from famous Hot | Springs, Arkansas. Endorsed by physicians | for over 30 years. Phone for booklet. Mountain Valley Mineral Water Met. 1062. 1405 K St. N.W. ALLOWANCE Deducting statutory debt retire- ment, the resulting net deficit ‘would be $2,730,982,860. It may be polnted out in'this connection that erroneous and gloomy predictions have frequently been voiced in some quarters to the effect that heavy increases in taxation will be required to bal- ance the budget and retire our public debt. The underlying rate of recovery points to the “speedy decline of Federal expenditures for emergency activities. The 1937 budget is now being prepared with a view to sharply decreasing the spread between incorfle and outgo, Thus it is clear tp me that the Federal Government under provi- sions of present tax schedules will not need new taxes or increased rates in existing taxes to meet the expense of its necessary annual operations and to retire its public debt. Congress’ Appropriations Total More Than $8,671,000,000. The estimates of appropriations included in the budget and supple- mental estimates submitted by me to Congress after the budget was presented aggregated $8,679,441,626. ‘The budget included an item of $300,000,000 for regular public works.. This item was later re- duced by me, in a formal recom- mendatiort made to Congress, by $76,000,000. Appropriations made by Congress aggregated $8,671,427 .« 171, a difference of only $8,014,455, exclusive of the reductions subse- quently made by me in the public works estimate. It will be observed that the defi- cit for the current year, like those for the preceding two years, is due entirely to expenditures contem- plated on account of the emergency and almost wholly on account of uremployment relief. Moreover, it is anticipated that the deficit for this year will be about $300,000,- 000 less than the deficit for 1935. This reduction in the deficit can be realized, however, only in the event that no new items of expenditure are added to the year's program as set forth in this summation. e Britain Prepares. Great Dritain is studying the ques- tion of food supply in relation to the MONDAY, SEPTEMBER -,30, 1935. BLACK COMMITTEE 10 PRESS INQUIRY Anti-Lobby and Special Tax Legislation Are Major Goals, He Declares. By the Assoclated Press. Anti-lobby and special tax legis- lation are the major goals of the Senate Lobby Committee's investiga- tion, according to Chairman Black. He turned aside suggestions from | g some quarters that the lobby inquiry be dropped now that the utility hold- ing company bill is law, and said: “The ultimate objective of our in- vestigation, which will continue until we have all the facts, is to plan lobby and tax legislation. “The fact that one bill has passed doesn’t affect the necessify of stopping lobbying in general and the unjust rewards by big incomes—that is, the deduction of lobbying expenses from income tax returns. “I have sought to stop this practice and intend to push legislation to that end after we have shown the amounts involved. “Moreover, the question is still up on the holding company law {tself, that is, on the effect of the act wnd how far it should go.” ‘The constitutionality of the utility law is at issue before a Baltimore Federal Court. James M. Lanais, chairman of the Securities Commis- sion, has urged the utility industry to “play ball” in testing the act’s validity, saying that while the Government would not “shrink” from a test, there must be “a controversy that is real and not a sham.” ‘The utility law requires registration with the Securities Commission of utility representatives appearing be- fore Government agencies. Black has urged general registration of all those whom he designates as “looby- ists.” The Black Committee said fits records show more than $2,000,000 was spent by utilities companies in efforts to defeat the holding company bill. Black has estimated the total entire problem of air raids. AND HERE AND HERE may reach $5,000,000. Get rid of that old-fashioned idea that hair cannot be re- grown. Science has found th: (papilla) remains alive and at the hair-growing structure ready to respond to proper stimulative treatment even long after hair has disappeared from the scalp. 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