xt7wwp9t2q46_83 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 86 "The 1937 Budget: An Analysis of a Proposed Riot of Extravagance Recommended to the Congress with Misleading Official Interpretations and Representing a Brazen Repudiation of the Economy Pledge in the Democratic Platform of 1932," January 13, 1936 text No. 86 "The 1937 Budget: An Analysis of a Proposed Riot of Extravagance Recommended to the Congress with Misleading Official Interpretations and Representing a Brazen Repudiation of the Economy Pledge in the Democratic Platform of 1932," January 13, 1936 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_86/Am_Lib_Leag_86_001/Am_Lib_Leag_86_001.pdf section false xt7wwp9t2q46_83 xt7wwp9t2q46 §
AN INVITATION TO JOIN THE  
AMERICAN LIBERTY LEAGUE   * *
We extend to every American citizen who believes in E      
the fundamental principles which gave birth to the Q
Constitution of the United States an invitation to be-  
come a member of the American Liberty League. E
You may indicate your acceptance of this invitation   `
by filling in the necessary information as to your name 2
and madmm om me enrollment blank bmiow mid mailing   * * *
it to American Liberty League, National Press Building,  
Washington, D. C.  
There are no fees or dues. If you are willing and able  
to give monetary help for the League’s support your §
contribution will be appreciated, as our activities are   , ,
supported entirely by the voluntary gifts of our   An Analysls Of rr Proposed Rlot of
members.   Extravagance Recommended to the
  Congress with Misleading Official
ENROLLMENT BLANK   Interpretations and Represent-
Date   ing a Brazen Repudiation of
  A the Economy Pledge in the
I favor the principles and purposes of the American   Democratic Platform of
Liberty League and request that I be enrolled as a Q I 2
f rrrrrrr } member.   93
l*contributing   ,
Signature E
p Name (Mr. Mrs. Miss)   v`A .q¢ _
S V s
E Street   (po o
Q   rw ter y
2 E
2   E
¤·4 Town j *
County State  
  g AMERICAN LIBERTY LEAGUE
*As a contributing member I desire to give $__._   National Headqumrteys
. ; “ NATIONAL PRESS BUILDING
to help support the activities of the League: Cash here-   WASHINGTON, D_ C_
with..._.m._Installments as follows: ._._m____  
  ir *
g Document No. 86
  January, 1936

 The 1937 Budget 1
i ir
The budget for the fiscal year 1937, sub-
mitted by the President to the Congress on
January 6, 1936, provides for the greatest orgy
of peacetime spending by any nation in the his- .
· tory of the world. The estimates disclose a ,
program marked by an riot of extravagance on
every hand. Nowhere does there appear the
slightest trace of a purpose to adopt the policy
of economy pledged by the Democratic platform
of 1932.
The President’s interpretations of the fiscal
, , situation are misleading and even deceitful. In .
numerous respects the message and the volumi-
nous mass of accompanying statistical data are
designed to gloss over or conceal the true picture T
of a budget status which is unprecedented and
. highly disturbing. The President stresses de-
  creasled apgropréatiorif (no; expenditures) andla
l sma er de cit, ut ts e bu get points to great y
l increased expenditures (including funds from the
Uk/HEN you have finished with this   igigiantic 3¤W0·}é€&Y W<;1`k·1;c€H<’;f t@PPY0PTg¤l§0}}; Qf
, l as year an an a mos s a 1onary e C1 in
Pamphlet Pleasg Pass lt On to Some   the lflace of much larger reven}ues.S
· · · i T e Government under t e ecurities Ex-
fwend OY acquaintance who might be   change Act compels private corporations to file
interested, calling his attention to the   iéneqfiivfgcal and complete informatilon as to their
.   sca a airs. If any corporation s ould offer a
membeysmp b1¤r'<<>r~ page °'4’   statement as deceptive and confusing as the
g President’s budget message, it would be prose-
cuted under the penal section of the statute.
Salient facts include the following:
{ 1. Expenditures proposed for the fiscal year
I 1937, including a supplemental work—relief item,
' will exceed those of the record—breaking peace-
_ time total of 1936 by a billion dollars or more.
2. The deficit is likely to be almost as great
as in 1936 despite an estimated increase in
revenue of almost $1,250,000,000.
3. The date of a balanced budget remains in-
definite, although revenues have reached a vol-
ume far in excess of the normal total during the
period of surpluses in the decade up to 1931.
, `   Failure to include a new estimate for work-
{ relief leaves in an uncertain status the largest
_ , single item of the budget.
.   5. The stated purpose to ask later for work-
relief funds, probably upwards of $2,000,000,000,
. obviously means an attempt to rush through an
appropriation during the closing days of the
session.
3

 6. Deferred consideration of the work-relief i th -
appropriation is designed not horily to prevent eIi0§g35 anew taxes lmpeeeu by the Revenue Act
adequate discussion of the w oe question 0 Th   t fth · _ t
POll°Y but also no avalll a ln,uen'needeu lnveeu" Visioiie Onctafic ratesenlelaleertaizeiielnlaizlerugalzzilirlgregg
geationfoiiethe blunderi, ieietliciency and irregular- during rene nest fem, yeerel Ieeeme tex retee
1 1§7S QR 6 iirfggram (eta 9- h i d f on botli individual and corporation incomes have
b · thug? al`] iixpendl ulgzieealegeeneun he an been raised until they are higher than in wartime.
a en'? eaeeinveneeieleieleieealeleneeeeeeeey  reeeed by gilistate timxesl harden been advanced far beyond
· _ _ _   e war eve s. d ‘ d .
lenienelen  ennegaisenese annual nuslls by nun' ' eizecise teaexes are moeenblrliiaebeiles tlililan ldaiiirlieng ntliivel
9- Gl`€al*al`_ Gxeeutivs aunlnllny is sought under aseciii estgig léiiidiieicibtinvesanvnreilegrligt rlieeliggteiiutiili
€eli(eil_i?;a(‘ileiea§€Ini’·;eli’n Palnllunlng Shifting Ol funds additional revenues for a considerable time after
10. Drastic reduction in expenditures all along nigiingilnegtileggfts §ihde gveg hlgh eie‘Xee.nre new
the line is not only possible but is the most - - · 3 gm ue nnpieVe' ·
e d e f _ eh C ment in business will show even greater yields,
ursen u Y aclng a Onglasa It_1s significant that the most pronounced indus-
_ _ _ trial slump during the present administration
A PO11t1C&l PcrVc1‘s10I1 Of Facts followed the adoption of NRA codes and the
. ‘ . t sustained advance commenced with the
The introductory part of the Pres1dent’s rmt? -
budget message consists of a political exhortation ’ gg, igéggn Ogftngeiixédbgeene Supfimee Culinnn-
' hich he presents a distorted view of the - - S neee ec uu Y le at
enideeiyiee feeee reepeeeine the peeeene budget beneenfaftenthat decision and still continues, the
Sie..ea,n_ The President teieuy eee inaccurstsly a ities i§°2lel§§’§?§§ i?,¥€i&,‘%dZ"e u§§e§i“°1€Wl2,‘n‘°§
attributes the large increase in revenues to a l enedieii times the emeune ef 1933 najne ii an
¢0mbi¤a’¤iQ¤ Of New Deal Palmas lalaung. ul ous internal revenue is estimated for iigsimet
banks, agriculture, public works, home building, , mere then three times the eetei ef 1933 a
work-relief, interest rates, foreign trade, Gov- ' Ineinded in the ieeveeuee eeeimee d'. en
ernment credit, industrial wages and speculation. r budget nn, 1937 ere $354 eee eee fe ln , e
The many legislative acts of this administration, l taxes new inveiideted b ’ the Su ee pregeeeneg
he says, were all predicated on two interdepend— de i ·’e th d ie an p me Our S
eee betas; (1) that the measures would im- bu‘§§§e“m2‘§See§ $$1 §43g 3e§{)e§§“§°,?°llh°l at
mediately cause a great increase in the annual taxes nndei, tn9’S99iei Seen1_i,e’ Aee eininng new
expenditures gf the Gonrernment, frriany of tlee Y ·
expenditures eing in t e orm o oans to e l
ultimately repaid, and (2) that "as a result of i Tex Burden V€YY G1'€3t
the simultaneous attack on the many fronts I 2 · .
have indicated" the receipts would sharply rise.   teghienrldegneaeeieg, Eenfggeeei §e1?e;eeei:nelAnenYleet
He emphasizes the fact that the Revenue Act l i It- T P e. Ineneen
ef 1995 which Wee the Ueeekeeneeeienn meeeuee i peoiere. iis not strange that the President, both
has not as yet produced any returns and will 5 inleeeggeiegnleiilideliggeeieelelfeeegihnnd his budget
` ld only the relatively small amount of $222 - i ’ e ence e' P0 new taxes
ieee 999 during the neeei yeer 1997 Wieneet ( aiie ceontempiated, unless to deal with the AAA
A . ‘. . ` 1 si e ° '
specifically saying so he conveys the impression l niéeiiiegbief ieeieleieig Iggndizggpgleiieelene euen at
I that the large increase in revenues—from about Q as this ie e eeinnei n eee ther ‘. neeenlini
two and one-quarter billions in 1932 and 1933 i t b i- g Y ’ . e le pn) a Y
to an estimated five and two-thirds billions in l iliiniggeeo in;g,eV§eth9e§S;l;§eldrOm$ee eihne lnereaee
1937-has come about without any increase in i · -1 · ° e ere Wne a
en t b rd 9 I simi ar promise a year ago and when the Con-
nI 8e{mpll1as(i1n1e" says the President "that the 7 %iIieSS·nnee about to adioum in Inte June a “SOak'
7 7 ‘ -·
great bulk of increased Government income re- Q Rgeeeneitmiin egnewiengngdiginlaeeeeeeernteu biitluri
ferred to above results from increased earning ‘ nieneee ef Huey L9ng e P0 l lea
power and pronts throughout the nation and not i In minimizing the etfeet ef the Revenue Ace
4 i 5
 
l

 ef 193%: Wnlen he eeye made ,enty Sngnt re; created confusion with respect to these items in
creases ln taxes on large individual and cor budget reeeuate aud expenditures In Vlew heW_
poration incomes, excess profits, capital stock and ever ef the apparent purpeee eethe edmu;iSu,e_
€St9»t€S, the President fails te peiut eut that the tiontto find other means of obtaining revenues
law was deslgned prlmartly to strlke a blow at to pay Subsidies to aerieulture ue attempt ie
large Wealth and big bnS1neSS· made to eliminate the invalidated items from
The first point made by the President, that budget uguree herein given.
tne NeW_Deet IneeSnt`eS Were Intended re eeuee The following tabulation includes the essen-
n·_ ereet 1net`eeSe, In ennnet eXpend1ttn`eS> 1S.ln tial points of the estimates for the current fiscal
StreegeseeueteleletuheeeeyglaggtreDeed baregeeae year ieee and for the next neeal year 1937 as
cent. Also it directly conflicts with the fellow- itetgeleete thc budgct acccnnpanytng tne Preerdeut S
ing quotation from his economy message sub- -
  OI1 M&TCh 10,   General and Special Accounts
"I give you assurance that if this is done T Racmvrs
(meaning passage of the Economy Act) there is meme Tex $1434%*000 $1942;%,7000
reasonable prospect that within a year the in- Mite. internalneyeeueflffffffffjffffj 1;911:691:000 zjtsofzi-{ooo
oome of the Government will be sutlioient to %€§’&‘?,2§“.t‘?’F??::::::;:;:::::::;::2:;: §§3;l3i;338 §§l;$33;333
            IV[iSC8ll8l1€Ol1S   ..... .    
The eeeeeeuee ee ee the reeevereble eereiee Tom, Rncmrvrs ....................... s4,41o,ma,¤4e se,ts4,m,o5o
of Government dutlays is one which is being I Errrrrrrrrrrrrre
stressed repeated y y administration spokes- . dwg; geelny Treasury S‘¤¤*€r¤e¤t
men. Study ofthe detailed taleulatlene in which slftaaéiaial ’aaal:;::1::::::::;;:;::; ’*"é§;5§’5;é3t ’**233;3§8;l33
expenditures are eleeeifled ee neu-repeyeble aud f %EZ?Kl°&5.e3“2m2‘?;i§e‘yaaeaiiiiiiiizi a%?l;583’é35' 3%§tt3·33%"
repayable makes ridiculous any real claim that T Ter EXP I U    
more than a smell freetieu ef the total outlay   ..T”?T‘ii.‘f‘??;1;::ii;ii1i:1i11i‘a’ai’§a’§Z§ ‘l’Z3§’§2§’$Z3t
will be recovered, at least at any early date. , T t A t — ’ ' ' ' ' '
got ef a total 0f_$leQ,819,881,696 expended fer = 'a‘§.,a,,€§“ff‘.? ......................... aae,aa,aa $520,;::50,685
ygcovgyy and yghgf up {-,0 October 31,   Expenditures ,....................... 281,877,43O $07,301,454
$6,756,841,463 is classed bas non-repayable and A All Accountsl _ `
$4,063,040,233 as repaya le. However, of the Grerrd. Tate! Receipts  > . .¤ tnnng l. Treasury Statement classification. The expendi-
t e next ter; ycata Ugdetehpegeetee ptn`Sned>   ture totals in the tabulations are exclusive of
tepermeree tcm. pains ye e . ecenettnetten 1 postal costs defrayed from postal receipts. The
mance ctpptattcn aye eee drverted te nen“ l trust accounts do not include the profit from
repayable relief expenditures or to new loans.   the revaluatieu et geld_
Figures for earlier years comparable to those
Budg?t_TOt8'la used above will be found in the American Lib-
The Supreme Court S myalldatlen of the AAA erty League’s Document No. 71 on Budget 1-wee- r
processing taxes and agricultural benents has pggfge published in Ogtgbgr, 1935_
6 A 7

 1937 Tetele Sh0W Increase _ $600,000,000 in supplemental items, including
-. One of the most curious statements in the   IgeturlgaireerlgugegeetleeetdoieteglregldeRilt;Jrlel_
President’s message is that the budget estimates ment Aets fer. which deterred estimates are het
"show a decreased need for appropriations." reeds, There also is $928119632 under sre_
Wheterer the eittretten mer te ee te etnretrte· cov-ery and reins from spectre eiistments from
tions, it is the expenditure totals which are the 84 880 OOO 000 fund and $225 000 000 er this
significant. The attempt to divert attention fund dhelieeeted ’ ’
from expenditures to appropriations is an ex- `
ample of the misleading character of the mes- Defreits
sage. Even if the President does not intend to , _ ,
ask for another $4,880,000,000 relief appropria- Aeeerrlene ln rnerurlgee rneeeage regarellrlg
tion, the "regular" budget will be the largest on denrelre ere mleleedrng The rereeldene retere `
reeerd ss Will tetel eXperrdrtures_ to steadily decreas1ng_defic1ts. With simu-
The items fer expenditure in the Hscall year lated pride he says that 1f the work—rel1ef appro-
1937 tetel $6,752,606):370 in general end sheeied pr1at1on does not exceed $2,1%,000,000, the deficit
accounts and $507,301,454 in trust accounts, a ln 1937 Wlll _be_ne sreeter rnan ln the eurrene
gms mai cf $7,259,907,824. rhs President reer when tt te eetrrneted et $3,2%,000,000-
intimates thet the item fer Werk_reher to be The current deficit 1S now estimated te be some-
edded 1eter in the sessierr met, be as much as what less than lest year. The President says
$2,000,000,000. Adding this $2,000,000,000 brings h€_d0€S_¤0’t 8»¤l>1¢1P9»’te that the need fer Werk-
the tetel in gerrere] end Special eeeetmts to rel1ef will exceed $2,13Q,000,000 and 1nd1cates
ss,759,ece,e7c, which with the trust accounts I ttet he trrtt try te keen tt teewteet erneentee 7
makes a grand total of $9,259,907,824, Innys than 5 3; ggt;Il,%1I1J0&1D a record of steadily decreasing
teeltgr?  m EXCESS Of the cmlmsleondme What _the Prestdeng fails th point out is that
Oh e basis et $2,000,000,000 for WOrk_r€1i€f, receipts in genera an specia accounts are esti-
expenditures in the general and special accounts E, lllaeell et el>2ee>eee>eee nlere lll 1937 ellall lll
Wm exeeed by $1,].07,305,03Q these fer the eur_ 1936, and that the receipts 1D 1936 are estimated
rent fiscal year of 1936. In the light of this huge et allelle eeleteeealee lllele llllall lll leee It
increase the assertion as to the "decreased need eeellellly .Wel`e elle pllevalllllg pelley enere Welllel
for appropriations" is farcical and intentionally te lleele tr any delelelll lla l9e7‘ ll elepelldlelllees
_ deceptive. The total of expenditures for general eellellllle te lnereeee allllese ee laplely ee re'
and special accounts is estimated for 1936 at eelpl°s> Wlllell ls the slllllaelell et plleseller ellere
$7 ,645,301,338, which is greater than in any other Wlll llevelhlle a balanced llllelgee ,
year in the history of the nation except the . Tlle esellllalle elelteeereeerlee ee rne rlellelll
war years cf 1918 and 1919. Trust accounts 1 re eeneretend.ereeret eeeeente ter ttereer 1937
for the year 1926 are estimated at e2s1,e77,4ec re rnteteetttne re new ettte tetttre te tnetrete
which bring the grand total to $7,927,178,768. e Welrklrtlltr Item- Whut rt IS. Stated 21* the
While the general and special account totals lllessage lllall elle eelnel dellelll Wlll te ellls elllll
are those ordinarily used and with which the I pllls l°lle.Wellk`l`ellel applleplllallellr elle llse et
public is most familiar, the trust accounts are elle llelaelvely slllall lieeal lll elle elllelal llallllla'
7 m§rg€%• high Ithem in lthe tetels ter. heh years tions has tended to give a wrong impression.
w en is e in annua reports o t e Secre— ,
tary of the Treasury. When comparisons are The Public Debt
made with earlier years, it is therefore necessary A The public debt is certain to continue to
te inetnde trnet eeeeunte- Receipts end €XP€¤di· mount. Instead of an estimated gross total of
tures in the trust accounts ordinarily are not $31351 638 737 On June 30 1937 the eetuel deht
fe? allan, but 3»n}{ surplus OY deficit mUS’f» be l will belthis amount plus whaterer money may
gelligluéngg eleeiethtrt In ngunng the TI`€&SuI`Y’S Hel? it have to be borrowed for work-relief and the
The tetel in senerel end epeeiel eeeeunts ef ieileleuiutIlhleheigbllemilglrlillllelleilrlglSci) 
$6,752,6%,370 fer the Yee? 1937 inelrrdee $4,999,- year will be considerably in excess of $33,000,-
486,738 f01` general Pufpeses to which 1S added 000,000. This will be more than twice the debt of
8 9

 $16,185,308,299 on June 30, 1930, the beginning degree of recovery under a policy of a balanced
of the period of deficits. The year 1937 will be budget.
the seventh successive year in which there has The Bonus
been a deficit and an accompanying increase in
the public debt. While nothing is said in the message about
The Government is responsible not QHIY 101 immediate payment of the soldiers’ bonus, it is
P3·Ym6I1t of P1:11}01D9»l _9»hd mt€I`€St Oh lt? Out" 3»SSL11116d that the President Was referring to it
standing securities which are embraced 111 ti16 When he said that "if the Congress enacts legis-
public debt, but also 1111de1 the 1316661111 $@11111116- lation at the coming session which will impose
tration it has assumed contingent liabilities i11 additional charges upon the Treasury for which
Eonnection with farm and home mortgage re- provision is not already made in this budget, I
116110111% stron ur e that i ’ ‘
The Eontingent liabilitieel for prirglcipal and! in- to coiiigi suiih chargigiiponal taxes be provided
terest or securities actua y issue- up to U116 Passa e of a bonu i ' ° °
30, 1935, totaled $4,150,655,429.96. This includes to the a§·eady heavystgxgsvbbleiggzncghsbrziizcigbti;
$2,666,576,480.21 for securities issued by the larger deficit. `
Home Owners’ Loan Corporation, $1,233,090,- There can be no doubt that the movement for
547.93 for securities issued by the Federal Farm immediate payment of the bonus has reached
Mortgage Corporation and $250,988,401.82 for its present formidable stage by reason of the
securities issued by the Reconstruction Finance profligate expenditure of Government funds for
Corporation. The RFC has authority to issue all sorts of purposes of doubtful value Members
its own securities to the public as do the Home of the Congress naturally have beth reluctant
Owners’ Loan Corporation and the Federal Farm to vote against a bonus bill while voting other
Mortgage Corporation. The practice followed, ,_ billions for projects perhaps even less worthy
however, has lbeerijr for this eprploraltion to give ` `
its notes to t e reasury w ic 0 tains funds ·
through regular financing operations. The RFC ‘ Work Rehcf
notes held by the Treasury and reflected in the _ 12*. Q116 of th6 1110St 1111P01t3·11t questions before
public debt totaled $3,655,()()(),()()() gn Jung 30, this Congress is that of relief. In his budget
1935. message the President makes it clear that it is
The present actual contingent liabilities of ° his PUYPOS6 to continue 1116 P0116Y of last Year
the Treasury are less than half the authorized hhd61` which .d1166t 161161 Payments by the Fed-
total. eral Government have been replaced by work-
By rgascn Of an assertion   the President I`€l1€f €Xp€].'1d]iiuI°€S at 34 vastly llHCI`€3S€d cost.
in a Speech at Atlanta en November gg, 1935, He_does not even suggest that the question of
that bankers at the time of the bank holiday POIIOY be 00hS1€l616d by the Congress, within
had told him that the public debt might safely Wbbee Ptevmee lt PYOPGYIY 16116-
mount to from $55,00O,000,O0O to $70,000,000,_ ffEXpeI‘1er1Ce· under the V\{0I‘l{-relief pI'Og1‘8.II1
000, debt possibilities have been much discussed 9 ers be lustlbeetlbb feetbte more 00SttY P1611
in recent weeks. The opinion of the best authori- IE preference tb direct relief- From ell P9·1`t6 of
ties is that the important factor is whether the t F goumry has Come evldebee that the W01"k‘
debt continues to increase under such conditions my program bee been e gigantic tthhi}`6-
that its status is marked by uncertainty. If t_he W 0£{_§§’€Si.pri`er([j&1°r;°eii by these who 0t`lt10{Z6d th6
budget is balanced and the debt remains sta- . the hu 8 ggnd °.Hti)Sb ryefte the expehdltth`0 of
tionary, a higher level than at present might . amthee Such fwd ttvre Owgd tY e request for
perhaps be maintained. Continued deficits and l ing out mom uvlgm d eb t te breeeee ef P_0thf‘
constant uncertainty as to future policies un- is that 8 agar mb IS no C eee Ceftem It
uestionabl would seriousl undermine th ’ ·Xp luree Cth for direct relief and
tl _ Y Y 6 _ work-relief have been so handl d t
credit of the Government before any such total C Situation wherein the Govermgenis ihmgege .e
a·S_ $70»000»000,000 Was I`6tt0h6d· W}1116 the - difhcult to withdraw from this field W1 n It
British debt per capita is greater than in the In view of the apparently settled conviction of
United States, it has not increased 1n recent the President that the work—relief program must
years. Great Britain has attained a remarkable be continued at least for another year, it is

 absurd to suppose that the item should not be Omglhei legieietieh Wee Pi`eSei‘-ted as B, te¤1Pc1`3·1`Y
included in the budget at this time. If there iheeehhe, it Peimitted the cchti`01 Pregiehie to be
Were a   request for a Work-re1ief fund, COI1l¤1IIu€d l.11'1l',1l such t1H1€ 3,S the PI`€Sld€I1l} pI°O·
hearings might take place at once before the claimed the elld of the emergency. The Civilian
appropriation committees   a View to an COIlS€I`V8,l31OI1 Corps Wlll €Xp1I`€ UI1Cl.€I' the pI`€S€I1l}
exhaustive study of the entire problem. Months law Oh March 31, 1937,   thc_1°‘1”cSidc11t iI1teI1dS
might profitably be spent in consideration of the to Seek legislation cehtihhihg it P_ci‘mehc¤t1Y-
course to be pursued in the future and in an The 1937 ePPi`eP1‘1e»t1c1iS W111 mclude $405,-
investigation of what has taken place thus far. 000,000 for e _F€dera1 public Wcijkc Pfcgfam-
Consideration of questions of policy might go This emehht W10 be_ap1¤r<>pr1atcd dwectly tothe
forward even though it were understood that the regular agencies Which he»Ve charge cf cc¤St1`¤c·
administration might later change a tentative heh lheteed cf heihg allotted by the President
estimate of the arnount needed_ fI`OII1 Speclal. fl.1Il·ClS and claseed 3S €HI€I`g€I].Qy
Doubtless the presentation of a supplemental items- The Phhhe Works Pi`cJectS tc be ePPI`0·
estimate for work-relief in the spring will ·be Pmeted ie? do het represent all that might
accompanied by a plea for quick action on the Pi`ePei`1Y be classed as regular eXPehcht¤i`eS-
ground of a necessity to repienigh funds in Inany ;U’I1Cl€I` l}l'l€ Cll3,I'1g€ ID Cl?,SS1l:lC&l`/1OII   lI`1
localities. With the political conventions im- thie bgdeet ehd PMS Ueccl 1H the P1‘eSideI1t’S mes-
minent, the Congress will be in a hurry to get Sage, ieghiehn expehdithifee, eXch1SiVc of t1`uSt
aWay_ Little time Wn] remain fer. nrener de- funds, 1n the_year 1937 will amount to $5,649,-
liberation. The situation will be more conducive 000,000- This 1S eh_ihci°eeSc of $2,2%,000,000
to “rubber-Starnp" action than When   Presi- OV€I`   Ol] t1l'l€ b3,S1S of  COII1p3,I`3,lllV€ tOt·B,l.
dent sought immediate approval of the $4,880,- for the ee·I`hei` year as edlheted ih the mccccgc
000,000 appropriation in January, 1935, on the to accord with thc HGYV ci&SS1i°1cat10r1. 1
gyennd gf dwindling relief fnnde_ In 1935, While With this latest shift in classification the of-
the House complied with the administration’s 2 00191 deehihehte cf the Peet year Show three Sctc
orders for quick alction without amendment, the   ei iieur<¤Sdf¤t_the1_¤ltdt¤tw ccete of thc Gciicm-
Senate Wiseiy tee ite tjme_ ·. men , as 1S 1ngu1s e rom emergency out ays,
The President knows that under the two-year for the Yeere 1934, 1935 ehd 1936 cmd tW0 sets
authority in the present Work-Relief Act he is ici` 1937-
not forced to submit questions of policy to the The year 1904 had been eeihpieted iehg before
Congress. By waiting as long as possible to ask ehy cf the three sets Was published. Advance
for additional funds, he hopes to avoid a re- cSt1m&teS therefore were not involved, Never-
openlng 0f the relief lSSU.€. The adIIll11lSt1‘3,tlOI1 01101000, J01101`0 are Striking d1i1ie1`eh0eS 3»mODg the
Shouid net be permitted to evade ite yeepenei- three totals for 1934. While the President’s
bility both to account for what has taken place meeeege heYV eeye that “1`cg1119»1“” costs in 1934,
during the past year and to ask instructions with as fhetihguichcd from those fcr “recovery and
respect to the course to be pursued during the Yehehn Were $0,444,000,000, his mcSSc»gc 3 year
next ·year_ iaglc need a_"rJe§ular" tletall og $2t4rt$2,g00,000. A
_ aua1on1n enew u eon e asisofthe
Regular EXpe11Cl1tU,1‘eS Daily Treasury Statemenit classification shows
A significant feature of the present budget is iiiige %g?0f£1CO$,);i,)}in301i1;1u;;?igfS§,d;?;t1i1%lGf(i1§?l grgég
the abcndccmcct ci f¤hc.Pi‘et€¤S° that eXP€¤d*‘ to $2, 100 914 5.214 A little matter of a 1,1111,,,, d,,1-
tures for regular activities of the Government, rare ’iS mvorteden the de. b t th
as distinguished from the emergency activities,   hi h and IOW n mes! 1 0110000 0 W0011 0
are being held below the pre-depression total. tl, grhe dnremne gjwmls r th ,
The administration has definitely shifted the 11 res Beaver in eh Pr 011 d0 {fr gigrstappearlng
Agricultural Adjustment Administration and the ww htspmessai a G; 001 00dS. unj?0 $1000090*
Civilian Conservation Corps from the classifica-   Smtemenegcrassirnc 173.0*90 00 {335 9 4 Sreeshry
tion under "recovery and relief" to the "general" “' eee $2 7 48 eee 0060 100d0‘r§a 719 2e5$4é400>000#'
classification. Recently, before the Supreme (eee) ai 77e eee 000 gg 302 dee 0*00 > d *4 éggei
Court’s adverse decision, the President assumed 737   ’emd’ 195,,7 ( e’ ee 649 0000 0 > 0 #'
to announce that the AAA would be a permanent ’ ’ 00 ’)’ ’ ’ 0*000 (m0S'
. . sage) and $5 999 486 738 (Treasury basis).
rather than an emergency creation. VVh1le the _ ’ ’ ’ 13
12

 Anyone who takes the trouble to dig into the ments as well as for national defense and vet-
figures will find that under the President’s new erans are added to their ordinary appropriations
r classification "regular" expenditures in 1934, in the classification given below.
1935 and 1936 exceed receipts. He has thus The items remaining under the emergency
destroyed the fiction maintained heretofore that grouping are direct relief, work-relief, public
the budget has been balanced as to regular`ex- works under the Public Works Administration,
penditures. For 1937 receipts exceed "regular" loans by the RFC and miscellaneous allotments
costs by only $5,000,000. to new alphabetical agencies.
In view of the arbitrary and even inconsistent It is necessary to include trust funds for all
policies pursued by the administration in alle- years in order to make the figures comparable
eating expenditures for regular and emergency to those for 1924. The effect is to increase totals A
purposes, there is offered below a new classifica- somewhat but to reduce deficits. Postal expendi-
tion of Government costs. It is designed to tures met from postal receipts and the gold .
show the expansion of activities of the regular profit, which is carried by the Treasury in the
establishment of the Government. trust accounts, are omitted.
Comparative costs of the Government are The tabulation of expenditures, which is en-
given for the Hscal year 1924, which had the tirely unoflicial but altogether accurate, follows: ‘
lowest total of any post-war year; 1932, which A
was just ending when the Democratic party in A 3 3 3 3 3 3 3 3 3 3 *3 3 3 3 E. gg 3
its convention at Chicago adopted a platform   322% EESEZE 1* E 532 Est?
pledging a 25 per cent reduction in expenditures; ,*3         §     :;.3
1935, which is the last year under the present E §°* *°° Q gm" 3 Q E ‘° EES EE:
administration for which final Hgures are avail- ·• •* ** I .s  
able; and 1937, for which estimates are presented C, __ r-  
inthe new budget.     gi it   és?
"Regu1ar" expenditures under this classifica- §   €§§§§§ § 51 E5? ee-?
tion include all activities of agencies which were · l '“ E E § § § *2 $3 2% E § E   E if gl:
in existence before the depression and of new l Ti iii °`* 5*7; sim
agencies which are in fact or have come to be EEE
regarded as permanent. The AAA and the       lg E   gg;
Civilian Conservation Corps have been shifted Q §;§§     5   §§’§ *333
from the emergency column to the regular 2 § E § 5 E E is §   § E   E;   gg s
column as in the new budget. Minor agri- ci if   $5:
cultural activities also have been shifted. Other  
shifts from the emergency to the regular group-                 E   _§§"°
ing, which are not in accord with budget § E2 § 5 § E E § § E gg § jjgé .
or Treasury tabulations, affect highway con- "         ZZ; .
struction, which for years has been conducted °° zi §—*+ Biff
under the Department of Agriculture, and there- if .,5 s ; ; ; : .4 ; ; ; ; ; : :.5 : me : gg?.
fore is an ordinary activity, public building `g,Q"§g E E Eg if E 5 E E E E EB E   E _§§"’ t
construction under the Treasury Department, §¤ gg E E EE; 5..j E S E E Spf E 333 E §§g`£l
river and harbor improvements under the army §E`E § § Egg   E $ E i if i EE   Y-l.`j>·§
engineers, Boulder Dam and reclamation con- ?•§E°q§ E E§·¤ Sie i E E   E és E  
struction under the Interior Department, all ,5 S QE E E8 5   E E E Ed E °?"§ E §.Es‘§°”
construction under the Tennessee Valley Au- rifsig   gag; U"; E § g E; E gs   ;=’~`5
thority, and similar items which are of the same   gi _€ Z ¥§§ E *,-3 § 2 5*3 E`; E ¤ §— E  
_ character as carried on before an emergency or ° ij, 5 -F·"§ E g§"‘ W6 § E S E ss? S gg S .§i°§°
"recovery and relief" budget was set up. In §§§§ §§'Y=E° ?'é‘g     $ @5 E $@,%,3
the official groupings funds for a part o