Fever Chart
Like the fever chart of a sick giant, the Federal Budget continued to make news last week about the public credit of the U. S. On April 18 the red line of the deficit broke through the billion-&-a-half-dollar mark for the first time in fiscal 1933. On that day Federal outgo ($3,102,172,570) since July 1, 1932 exceeded Federal income ($1,598,325,881) by $1,503,846,689.* The Public Debt stood at $21,452,266,588, an increase of $1,965,263,144 in the form of borrowings to meet current expenses since the beginning of fiscal 1933.
During March, however, the Budget staged a small but significant rally. In that month for the first time since September, 1931 the Treasury took in more than it spent and closed its books with a hopeful little profit. March receipts: $283,185,773; expenditures: $282,367,864; surplus: $817,909. March 15 income tax payments, together with a drop in expenses, helped to break the Treasury's 18-month jinx.
Though it was not his doing, such a break during his first month in office heartened Lewis Williams Douglas, President Roosevelt's slick-haired, squint-eyed young Director of the Budget. The 1933 budget is a hangover from the Hoover Administration, a Republican inheritance beyond Democratic repair. Most of the Roosevelt economies will not show up until the 1934 budget (effective July 1) and upon them Budgeteer Douglas is concentrating with a heartless zeal that has bureaucratic Washington by the ears. Though he shakes his head mournfully and talks about his "sad job" which wrecks the hopes and happiness of thousands of citizens, he is determined that President Roosevelt shall make good on his campaign pledge to reduce Government expenses by 25%. For 1934 Director Douglas sets himself an economy goal of $850,000,000.
Last week Budgeteer Douglas took a long step toward that goal when, through the White House, he submitted to Congress his estimates for the Independent Offices Appropriation Bill. At the last session was passed a similar measure carrying $1,083,567,534, of which $966,838,634 was for veterans. On March 4 President Hoover vetoed it because of Congress' failure to reduce pensions. In the revised version of this supply measure for warded to the Capitol, Director Douglas asked for only $615,159,926 -- a clear saving of $468,407,608 due almost entirely to President Roosevelt's orders reducing pension payments after July 1.
Equally as important as the cash savings was a series of recommendations which Director Douglas asked to have attached to the bill as riders to give the President even greater powers as an economizer. Authority was sought for the President to: 1) retire Federal employes after 30 years' civil service and leave their jobs vacant; 2) furlough indefinitely on half pay any number of Army officers (the plan: to weed out about 3,000 and reduce the present personnel to 9,000); 3) cancel Government contracts, including air and ocean mail subsidies, and remake them on better terms; 4) eliminate the year's pay now given to surplus graduates from the Naval Academy; 5) readjust downward the extra flying pay now allowed Army, Navy and Marine aviators.
Meanwhile the House of Representatives passed (313-to-45) a special revenue bill to extend for another year the 1-c--per-gal. gasoline tax which nets the Treasury about $10,000,000 per month. Included in the measure was a definite cut of the first-class local postage rate from 3-c- to 2-c- -- a device to regain postal revenue lost when city merchants started distributing their bills by hand. The President was also authorized to study and revise up or down other postal rates if he found they were losing the Government money on business. Breaking out of Democratic control the House voted (153-to-73) to transfer the 3% electricity tax (revenue: $55,000,000) from the consumer to the power producer.
* Same day last year the 1932 deficit was $2,145,146,544.
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