President Roosevelt Shows How To-day's Deficit is Making Possible To-morrow's Surplus Washington, Jan. 6. HE policies adopted by the Administration in 1933 had been carried out erding to plan, the President declared in Budget speech before both Houses of Congress to-day.
When he entered office taxes were high but receipts were low, on account of the low level of national income, Mr. Roosevelt asserted, and millions of Americans were starving.
The Administra tion inaugurate? a programme designed to guarantee bank deposits, prevent foreclosures of mortgages, encourage construction, increase the national income, reduce interest rates, increase foreign and domestic trade, reduce unsound speculation, raise wages, and increase commodity values.
The Adi istration had increased Federal expenditures, the President admitted, but this had been carried out in the form of loans which were to be repaid later.
As a result of these policies, Mr. Roosevelt said, na nal income had inereasad, thereby increasing government receipts and reducing unemployment.
"it we proceed alone this path, the programme will continue to. be sue struction of 94 ships already undercessful, sand we can anticipate a conway, plus twelve now destroyers an! tinued reduction of defials and in-six submarines. The Navy Depacicreased tax. receipts, together wit) ment proposes the increase of the declining expenditures for relief," the avy's personnel by 6,500 men, thus President stated in his message. bringing Ils enlisted strength up to 'Government finances are in the 100,000 "by "June 30, 1997, while the best condition in. seven years United States Marine Corps is to in credit Is' at its highest point. crease ils enlistment by 1.200 with ope that the attacks which spring the addition of twenty Second Lieu-from a desire for political and finan= tenants, dal power on the part of a few wil!
As for the army, ts personnel it not retard the steady progress of the nation," he said. tobe increased from 46,250 men to Indications are that expenditures 165,000 by June 30, 1938, of the Federal Government for the 'This sum for national defence, Mr, 1936 seal year will be $875,000,000 Roosevelt said, provided $2,250,000 for below estimates, while receipts will Rew navy planes and $31,000,000 for' be $419,000,000 above estimates, the new army planes. The navy, he stated, President declared. The Federal hopes to put 273 planes into regular deficit, he said, will be about $3,234, service and 104 aeroplanes are to be (000,006, or $1,294,000,0000 below esti allocated for the Naval Reserve. The mates. army, he said, expects to purchase '$5,009,000,000 Needed 442. new planes for regular use and For the fiscal year 1937, President thirty for the Nationa! Guard, Roosevelt declared, "I will need Apparently referring to the $5,069,000,000 to run all regular activi-soldiers' bonus, the President said, ties of the Government, including "T€ Congress enacts legislation which public works, operation of the imposes charges upon the Treasury Interest on the public debt, the major 1 strongly urge that additional Civilian Conservation Corps and the items for relict of agriculture, 1 likes be provided! to cover such charg expect to pay for these regular activities with estimated receipts of $5,054, The President recommended repeal 000,000, leaving excess receipts of of the provision for appropriating '$585,000,000, of which we will need thirty por cent, of all custome re-'$580,000,000' for debt retirement, This ceipts for the purpose of subsidizing will leave $5,000,000,000, atter paying the export of domestically-produced for all regular, expenditures plus agricultural commodities. Such a debt retirement." provision, he said, conflicts with the 'Thus, without the relief item, the principles of sound administration. budget' will be balanced, the Presi dent pointed out. He declared that Estimated Receipts would be dimeult to forecast the extent of relief needs because of the The budget submitted by President Fecentness of the: inauguration of a Roosevelt calls for estimated receipts: work-relict programme and also be-from income taxes of $1,943,000 000, cause private employment was con general internal revenue of '$2,103,- Hinuing to gain substantially.
00,000, processing tax collections of, 547,000,000, customs receipts $3,784,- Loss for Future Tell 00. "A total of $42,000,000 is allocated Tam reasonably certain." Mr. to the legislative, Judicial and execu-Rootevelt declared in his message, tive departments, $1,000,000,000 for "that appropriations for work relict the civil departments and agencies, during the seal year of 1997 will be '$938,000,000 for national defense; far less than for the current fiscal $790,000.00 for veterans benefits; year, This budget estimates that $619,000,000 for the Agricultural Ad-expenditures for recovery and relief Justment Administration, $1,103,000, from the unexpended balance of [000 for recovery and relief, $600,000, previous appropriations will amount }000 for supplemental items: $805,000, $1,108,000,000 "and thus the gross 000 for debt charges and interest, denelt of 1937 without estimated addi-'The President requested $17,000,000 tonal work-relief, is less than the for the payment of coconut elf taxes ross do felt for 1936 by $2,136,000,000. to the Philippine Government. He "ly -do not anticipate that the need estimated that an identical amount for additional relict funds will be would be paid during the current fag great as that sum......and there fiscal year. He also estimated that fore, by whatever amount the work expenditures to defray the expenses relict appropriation is less than $2.136,- of the United States High Commis-000,000, the gross deficit for 1930 will sioner in the Philippines would be less than the 1926 deficit by the amount to $150,000, and expenditures same amount." the President asserted. for the construction of a high Com-'Mr, Roosevelt said that his action missioner's residence "at. §240,000. in not including relief estimates in This figure is compared with $500,000 the budget will enable him to trans estimated for both purposes in conmit such estimates with grester_aenection with the' inauguration of curacy before the session of Congress the Philippine Commonweaitt adjourns. during the" current fiscal year.
Text read from the printed page and cleaned; old type leaves the occasional error.