Evening Star Newspaper, April 20, 1937, Page 8

TEXT OF To the Congress of the United States: N MY budget message of Janu= ary 5, 1937, I said that I would transmit at a later date an estimate of appropriation for work relief for the fiscal year 1938. In connection with this estimate it is desirable to review our pres- ent fiscal situation. Budget estimates made last De- cember indicated a net deficit for the current fiscal year of $2,248,- 000,000. They also indicated a net surplus for the fiscal year 1938 of $1,537,000,000, exclusive of any provision for a work relief appro- priation. On the basis of these estimates, therefore, an appropria- tion for work relief for the fiscal year 1938 of any sum less that $1,- 537,000,000 would have left at the end of that year a budget in bal« ance. Since then, however, new factors have so altered the fiscal situa- tion as to make it necessary to pre= sent revised estimates of receipts and expenditures. There is at- tached to this message a state- ment showing the present estimates for the fiscal years 1937 and 1938 as compared with the estimates in my budget message. A glance at this statement will show that the principal factor is the decline in tax receipts below our previous expectations. Fiscal Year 1937. The analysis of returns received in March, 1937, under the new tax law indicates that income taxes will produce $267,200,000 less than the former estimate for the fiscal year 1937. The receipts for the first nine months of this fiscal year indicate that other revenues will be $337,000,000 less than the esti- mate, which is due in large part to the obstruction of collections by numerous lawsuits against the Gov= ernment, h In view of the reduction in reve- nue it became apparent that every effort should be made to offset this loss as far as possible by a reduc- tion in expenditures. To this end I have directed the heads of va- rious Government activities to make a careful examination of their expenditure requirements for the last three months of the present fiscal year with a view to making substantial savings by eliminating or deferring all expenditures not absolutely necessary during this period, the money so saved to re- vert to the Treasury. Information thus far available indicates that the 1937 expenditures will prob- ably be $295,000,000 below the esti- mate of last January. The amount of the net deficit for the fiscal year 1937 is therefore estimated at $2,557,000,000, an in- erease of $308,000,000 over the January estimate. Fiscal Year 1938. For the fiscal year 1938 it is now believed that receipts will be $387,- 600,000 less than was anticipated last January, the reduction of $410,000,000 in the estimate of in- come taxes being slightly offset by increases in other receipts. Pending the enactment of the 1938 appropriation bills it has been impossible to make any mateflgfl revision of the estimates of expendi- tures for that fiscal year, other than for recovery and relief. The revised estimates of receipts and expenditures for the fiscal year 1938 a8 here presented indicate an estimated net deficit of $418,000.- 000. There is included in the esf mates of expenditures the $1,500,- 000,000 for work relief hereinafter recommended. I propose to use every means at my command to eliminate this deficit during the coming fiscal year. I expect to accomplish this by taking definite action at the be- ginning of the next fiscal year (1) to withhold from apportionment for expendiure in so far as possible with due regard to proper function= ing of the executive departments and agencies a substantial percent- age of the funds available for that year, and (2) to increase the re= ceipts of the Treasury through the liquidation of assets of certain of the emergency agencies. I regard it as extremely impor- tant that we should achieve a bal- ence of actual income and outgo for the fiscal year 1938, and I ap~ peal to you to join me in a deter- mined effort to bring about that re- sult. What I have sald is predicated on two highly important conditions. The first is the extension of exist- ing taxes which expire this year. ‘The second is the maintenance of appropristions made at this ses- sion within the total of the budget estimates. An increase in appro- priations would, of course, nullify our efforts to prevent a deficit in 1938. And while I recognize many op- portunities to improve social and economic conditions thrrough Fed- eral action, I am convinced that the success of our whole program and the permanent security of our people demand that we adjust all expenditures within the limits of my budget estimate. Future Fiscal Policy. 1 emphasise here what I said last January with respect to our future fiscal policy: “Expenditures must be planned with a view to the national needs, and no expansion of Government activities should be authorized un- less the necessity for such expan- sion has been definitely determined and funds are available to defray the cost. In other words, if new legislatiom imposes any substantial increase in expenditures either in the expansion of existing or the creation of new activities, it be- comes a matter of sound policy si- multaneously to provide new rev- enue sufficient to meet the addi- tional cost.” Bills being pressed for enact- ment during the present session would commit the Government to early expenditures of more than $5,000,000,000. About $3,000,000,000 of these authorizations are for the eonstruction of additional public works, even though there are ex- isting authorizations of almost $2,- 000,000,000 for this purpose. In the budget for the past three years I have set up a program of general public works and have often said that such s program should be kept within the limit of $500,000,- 000 a year. An annual program of this size should meet normal needs for highway, flood control, rivers DANDRUFF AND HAIR LOSS CHECKED ITCHING RELIEVED BY USING L L SOAP and OINTMENT THE EVENING STAR, WASHINGTON, D. C, TUESDAY, APRIL 20, 1937. : PRESIDENT'S RELIEF MESSAGE Revised estimates of receipts and expenditures for the fiscal years 1937 and 1938, as compared with estimates included in the 1938 budget for these years. General and Special Aceounts. 1. Receipts: Internal revenue. Miscellaneous receipts. Total, receipts I. Expenditures: . Legislative, judicial and executive. . Civil departments and agencies. . General public works program._. . National defense. . Veterans’ pensions and benefits. Revised estimates. fiscal year 1938, $6,243,000,000 463,000,000 200,000,000 Estimated in 8 budget, facal year To58. $6,648,432,000 463,000,000 182, Revised estimates scal year Estimated in 193K budget fiscal year 1937, $4,549,000,000 465,000,000 210,000,000 446,800,000 175,197 192,330,719 -. $6,906,000,000 $41,000,000 712,000,000 440,000,000 953,000,000 570,000,000 Adjusted compensation payments. Agricultural adjustment program . Civilian Conservation Corps. . Social security. ©Old-age reserve account.. . Interest on the public debt_. . Refunds . Recovery and relief_ . Supplemental items___. 524 000,000 350,000,000 286,000,000 540,000,000 860,000,000 53,000,000 1,820,000,000 175,000,000 450, $7,293,607,197 $41, 708, 451, 980, 5177, 482, 295, 540, 860, 52,946,900 13186, ,000,000 $5,224,000,000 $5,828,150,719 344,300 392,178 108,963 763,000 524,000 $40,000,000 650,000,000 300,000,000 840,000,000 570,000,000 559,000,000 518,000,000 379,000,000 186,000,000 225,000,000 840,000,000 44,000,000 2,630,000,000 $41,390,550 649,538,698 318,590,000 887,881,080 580,771,465 563,500,000 467,610,000 368,000,000 174,637,500 225,000,000 835,000,000 48,203,100 2,166,157,100 750,000,000 400,000 . 974,000 000,000 000,000 030,913 Total, expenditures (exclusive of debt re- tirement) III. Net+deficit (—) or net surplus (+) $7,324,000,000 $5,756,484,254 $7,781,000,000 $8,076,279,493 —$418,000,000 +$1,537,122,943 —$2,657,000,000 —$2,248,128,774 *Funds for continuation of the Civilian Conservation Corps are included under “Supplemental items.” 1To be increased by any amount appropriated by Congress for recovery and relief for the fiscal year 1938. As Indicated in the message, it is hoped the amount will not exceed $1,537,123,000. and harbors, reclamation, Federal buildings and other public works. I recognize the need for flood prevention and control, but it should be realized that to finance such large immediate expenditures as are contemplated by the ma- Jority of the flood control bills now pending in the Congress would im- pose an unjustifiable burden upon ‘ the Federal Tre-sury. Bills inyolving additional au- thorization of more than $500,000,= 000 for highways have been intro- duced despite the fact that ex- penditures for this purpose during the last four years have exceeded one billion dollars and that there are existing authorizations for ex- penditures during the next two years of nearly $450,000,000. The maintenance of a sound fiscal policy requires the careful planning of authorizations as well as appropriations. It is impossible to maintain the proper balance between revenues and expeditures unless restraint is exercised with respect to authorizations of appro- priations. It is a matter of con- cern to you and to me who are working for a balanced budget that S0 many special groups exert the strongest pressure to bring about increases in Government expedi- tures. They pay little attention to the fact that the budget, as sub- mitted, represents a co-ordinated fiscal program and that material departures therefrom destroy the whole purpose of the program. If we are to avoid a continuation of deficit, we must resist these im- portunities or provide the neces- sary revenues to meet the increas- ing costs. It is & matter of common knowl- edge that th: principal danger to modern civilization lies in those nations which largely because of 8n armament race are headed di- rectly toward bankruptcy. In pro- portion to national budgets the United States is spending a far smaller proportion of Government income for armaments than the nations to which I refer. It be- hooves us, therefore, to continue our efforts to make both ends of our economy meet. It has become apparent that there is an immediate need for a careful survey of the present tax structure. The Treasury will be prepared by November, next, to present to the appropriate commit- tees of the Congress information as to such loopholes as may exist in the present revenue laws and suggestions for such new or addi- tional taxes as may be necessary to meet deficiencies, if any, in the revenue-producing power of the present levies. This will permit these committees to study such in- formation and suggestions for the purpose of proposing early in the next session of the Congress legis- lation necessary to remedy defects in the present tax laws. I recommend that an appropria- tion of $1,500,000,000 be provided for work relief for the fiscal year 1938 and that it be made available early in June so that its expendi- ture can be properly planned prior to July first. FRANKLIN D. ROOSEVELT. ‘The White House, April 20, 1937. Relief (Continued From Firsi Page.) It has been the historical policy of the Republican party, he said, to keep expenditures down, and he was glad to restate that policy. Warning Is Given. In the President'’s message today, no proposal was advanced for increase of taxes at this time, although a hint of it at the next session is given. The President warned Congress, however, that if appropriations should be made during this session in excess of his estimates, it would be necessary to provide new and additional revenues. He demanded the re-enactment of certain taxes which are due to expire this year. In his budget message to Congress, transmitted January 8, he said: “Al- though we must continue to spend substantial sums to provide work for those whom industry has not yet ab- sorbed, the 1938 budget is in balance. And except for debt reduction of $401,515,000, it will remain in bal- ance, even if later on there are in- cluded additional expenditures of as much as $1,537,123,000 for recovery and relief.” At that time the President promised to send later his estimates of appro- priations for relief. His message to- day set $1,500,000,000 as the total to be appropriated for that. | The President today, because of the | BuTLER PAINTS A washable, sanitary, durable ings and trim. wall-board, metal and concrete beautiful harmonizing. for cleaning. Buy “Fairfax” METROPOLITAN designed for kitchens and bathroom walls, ceil- It dries hard to a velvet or satin gloss finish. May be applied on wood. plaster, Available in white and ten restful shades, Soap and water are all falling off in tax receipts, revised his estimates for the fiscal years 1937 and 1938. He pictured a deficit on June 30 pext, the close of the present fiscal year, of $2,557,000,000, or $309,000,000 over his estimate made in his January budget message. The President also foreshadowed a deficit at the close of the fiscal year June 30, 1938, of $418,000,000. Analyzing the tax returns received in March of this year under the new tax law, the President said that in- come taxes will produce $267,200,000 less than the former estimate for the fiscal year 1937. “The receipts for the first nine months of this fiscal year,” the Presi~ dent continued, “indicate that other revenues will be $337,000,000 less than the estimate, which is due in large part to the obstruction of collections by numerous law suits against the | Government.” Agencies Told to Cut Costs. The President said that, aware of this reduction in revenue, he had di- rected the heads of Government agencies to make substantial savings “by eliminating or deferring all ex- penditures not absolutely necessary during this period.” Savings amount- ing to $295,000,000 below the estimate of last January, he said, should result from this order. Dealing with the fiscal year 1938, the President said: “It is now believed that receipts will be $387,600,000 less Psychic Message Council 1100 Twelfth St N.W. Cornes of 12th and “1* Circles Daily, 2:30 & 7:30 P.M. Grace Gray DeLons. Reader Personal interviews for spiritual help and guidance may be arranged by a visit ta the Council House or Telephone Mewrvpolitan 5234 Consultation $1 FLYNN GLASS “Fairfax” Satin Finish $3.2 B sation Pg\ adapted to you need paint, especially surfaces. Paint and you buy the BEST!! If desired, deferred payments may be arranged. order—it will be delivered by our “Speed-E” Service, Phone your 609 C St. N.W. 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Or, go by way of Cool Colorado, overnight—any night, on the new stainless steel DENVER ZEPHYR; enjoy a glorious sightseeing day in mile-high Denver, and still reach the eastern gateway to Yellowstone the second morning out of Chicago by riding the BUFFALO BILL, new over- night train between Denver and Cody this summer. No extra rail fare. Go one route —return another. 80 Mile Motor Trip—No Extra Cost Any way you choose, you get an 80 mile motor trip over the famous Cody Road at no extra cost —when you “go Burlington.” You can add Glacier Park to your ticket for only a few dollars more. Whether you travel independently, or join a congenial, All-expense Escorted Tour, ““go Burlington” for the best travel value. =—=—=—=—=SEND THIS COUPON TODAY-———— F. F. CRABBE, General Phone: Ni O Check here if interested in All-expense Escorted Tour Burli . Wi Route VIS 2, 309 Wood' gton ational 233. Ph-u-ut!-cmfiu'ehwm‘lmmd State Burlington Route $5,189,020,000° than was anticipated last January, the reduction of $410,000,000 in the estimate of income taxes being slightly offset by increases in other receipts.” Pointing out that the present indi- cated net deficit for the fiscal year 1938 was $418,000,000, the President added: “I propose to use every means at my command to eliminate this deficit during the coming fiscal year, I ex- pect to accomplish this by taking definite action at the beginning of the next fiscal year (1) to withnold from enforcement for expenditure in 80 far as possible with due regard to proper functioning of the executive departments and agencies a substan- tial percentage of the funds available for that year, and (2) to increase the receipts of the Treasury through the liquidation of assets of certain of the emergency agencies. More Appropriation Frowned On. The President shut down hard on appropriations by Congress outside of his estimates, no matter how worthy the cause, saying: “And while I recog- nize many opportunities to improve soclal and economic conditions through Federal action, I am convinced that the success of our whole program and the permanent security of our people demand that we adjust all expendi- tures within the limits of my budget estimate.” The President went further in his message today to drive home the need of the curtallment of Government ex- penditures than he has ever done since the passage of the original econ- omy act at the outset of his adminis- tration in 1933. ‘While he asked for no new taxes at the present session, his message indi- cated they may be necessary when Congress opens its next session in January, 1938. On this point he said: “It has become apparent that there is immediate need for a careful survey of the present tax structure. The Treasury will be prepared by Novem- ber next to present to the appropriate committees of Congress information as to such loop holes as may exist in the present revenue laws, and suggestions for such new or additional taxes as if any, in the revenue-producing pow- er of the present levies.” Committees Then Can Act. He said that in this way the com- mittees of Congress, the Finance Com- mittee of the Senate and the Ways and Means Committee of the House will be able to make recommendations for tax legislation, if necessary, early in the next session of Congrass. The President's recommendation for the work relief appropriation was brief and went into no detail. He merely asked for a lump sum of $1,- 500,000,000 and asked that it be made available early in June so that its expenditure can be properly planned prior to July 1. In some detail the President an- alyzed the proposals carried in bills introduced in Congress outside his budget estimates. He said that bills now being pressed for enactment would commit the Government to early expenditures of more than $5,- 000,000,000. About $3,000,000,000 of these authorizations are for the con- struction of additional public works. The President called attention to the fact that there are already existing authorizations of almost $2,000,000,- 000 for this purpose, and also to the fact that for the last three years the Government has set up a program for general public works and that he has often said such a program should be kept within the limit of $500,000,- 000 a year. Flood Control Held Big Burden. Admitting the' need for flood preven- tion and control, he said that the large immediate expenditures contem- plated by the majority of flood control bills would impose sh unjustifiable burden at this time upon the Federal Treasury. He also disapproved bills making additional authorizations for more than $500,000,000 for highways. He hit strongly at “special groups” which are exerting the strongest pres- sure to bring about increases in Gov- ernment expenditures. At the same time he defended the expenditures which are being made by the Govern- ment for national defense, pointing out that the United States is spending a far smaller proportion of Govern- may be necessary to meet deficiencies, ment income, in proportion to national | budgets, than are other nations en- gaged in an armament race. The amount of the relief budget was reported by Senator Robinson, Democrat, of Arkansas after a White House conference last night to be $1,500,000,000. Robinson said last night's confer- ence developed strong sentiment that “every practical effort should be made to limit expenditures and appropria- tions so as to close as soon as possible the gap between income and outgo.” The first of a series of $50,000,000 discount bill issues to provide new cash was sold yesterday at an average interest rate of 0.545 per cent. ‘The Treasury has $300,000,000 of bills maturing June 15, and some authorities predict these will be re- placed with long-term obligations. ‘The bills now being issued will mature Beptember 15, when third-quarter in- come tax collections pour in, —_— C.1.0. CLAIMS MAJOR VICTORY IN SOUTH BY the Assoclated Press. RICHMOND, Va., April 20.—Organ- izers claimed “a major victory” for the C. I. O. today in announcing that the Richmond Plece Dye Works, employing 168 workers, has signed a working agreement with the Textile Workers® Organizing Committee. John A. Peel, T. W. O. C. regional director, in making the announcement, said the agreement was “the first major victory for the T. W. O. C. in the South,” and that the committee leaders were planning to organize all Richmond textile plants under the John L. Lewis banner. Peel said the dye works agreement was the first skirmish in the avowed | campaign of the T. W. O. C. to or- ganize all local textile plants, including the Du Pont rayon plant at Ampthill. The agreement at the dye works will become effective April 28. Peel said the pay increases would average 221% per cent to 37!, per cent. CITIZENS TO MEET | A one-hour entertainment program to be followed by a short business sesslon will be featured tomorrow night at the meeting of the Chevy Chase Citizens' Association meeting in the auditorfum of the Woodrow Wilson High School. President ¥dwin 8. Hege announced today. The meeting in the Wilson School tomorrow night marks a departure , from the association’s previous meet- ihg place. 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