Unbalanced

BUDGET

The Government is likely to come out at the end of the fiscal year on June 30 with a deficit of $180,000,000, unless new means of saving are found. Director Lord of the Budget Bureau raised his former estimate of a deficit of $117,000,000 on his last computation to the above figure.

Recent developments have indicated that the following revisions must be made in the original estimate of a $117,000,000 deficit:

The deficit will be enlarged 1) because the British Government under the new debt agreement is expected to pay the interest installment of $69,000,000 on its debt not in cash but in Liberty Bonds; 2) because of unexpected appropriations made in the closing hours of the 67th Con- gress.

The deficit will be cut 1) because of payments made by the Shipping Board and the Navy Department of $6,000,000; 2) because the estimated return from the March 15 installments of the income tax will exceed by from $25,000,000 to $50,000,000, the expected $400,000,000; 3) be- cause the revenue from tariff duties is now expected to be in excess of the $500,000,000 estimated.