UNITED STATES BUDGET

Dominion, Volume 20, Issue 62, 7 December 1926, Page 9

UNITED STATES BUDGET

ESTIMATED SURPLUS INCREASED APPROPRIATIONS FOR COMING YEAR VOTES FOR NATIONAL DEFENCE President Coolidge, in his Budget speech, estimated this year’s surplus at over 383 million dollars. He declared that he wanted the war preparedness expenses kept down in peace time. By Telegraph.—Press association. Copyright. (Rec. December 6, 5.5 p.m.) Washington, December 6. President Coolidge, in his Budget speech, asked Congress for more than 4,000,000,000 dollars to run the Government for the fiscal year ending 1928. He declared that he wanted the war preparedness expenses kept down in peace time and announced that he would refrain from asking for appropriations for three cruisers authorised for construction before J uly 1. He also sought only part of the money authorised for starting the Government’s five-year aviation construction programme. Taxation questions occupied most of the speech. The President estimated this year’s surplus at 383,079,095 dollars, and the 1928 surplus at 200,703,863 dollars, but he claimed that the 1928 surplus would not be too large an operating margin. President Coolidge recommended Congress to reduce taxes for the first six months of 1927, and urged that the amount of relief should depend upon the surplus it was desired to divert from debt reduction to tax reduction. He asked for an appropriation of 680, 537,642 dollars for national defence, saying this country was now engaged in negotiations to broaden the existing treaties with the great Powers which deal with the elimination of competition in naval armaments. The President asked for 366,722,142 dollars for the War Department, an increase of twelve millions, and 313,815,500 dollars for the Navy, a decrease of nearly twelve millions, and 82,500,000 dollars for the promotion of aviation for national defence and commerce. Of the latter sum 73,477,380 dollars are allotted to army and navy aviation, embracing 20,600,000 dollars for new ’planes and 2,400,000 for construction of aviation barracks. The President recommended that the construction of an airship of six million cubic feet capacity, included in the programme approved by Congress, be delayed until tests had been made on a three. million dollar, all metal airship authorised. Other votes asked for ranged from

50.000 to 2,500,000 dollars for a postal air mail service, the operation of a coastguard seaplane fleet forestry patrol ’planes, and weather observation 'planes. The President also requested a vote of 30.000,000 dollars for prohibition enforcement. REPORTED APPALLING CONDITION OF ARMY Washington, December 5. Dr. Dwight I'”. Davis, Secretary of War, and General John Hines, Chief of Staff, in their annual reports stressed the appalling condition of the American army. They declared that the terms of the National Defence Act, which provides for the maintenance of an army of 280,000, are not being fulfilled. The armv now allegediv has only 40 per cent, of its contemplated strength.