U.S. TO BALANCE ITS BUDGET

Hawke's Bay Herald-Tribune, Volume 81, Issue 42, 12 November 1937, Page 5

U.S. TO BALANCE ITS BUDGET

-Preia Assn.-

• m — 7 ' — Curtailment of Spending is Proposed

APPEAL TO CAPITAL

, (By TelezraDb-

-CopyrI|fht.>

(Received 12, 8.45 a.m.) NEW YORK. Nov. 11. Mr. Henry Morgenthau, Junr., Secretary of the Treasury, announced tp-day that the Administration planned fco balance the 1938-'39 Budget by the curtailment of 700,000,000 dollars in Federal expenditure on publio highwaya works, nnemployment relief, and agricultural assistance. Mr. Morgenthau appealed to business, industry, and agriculture to cooperate toward the d'esired ends. He admitted that the business indices recently had shown a declining tendency, but said that the country was. nearing the end of one of the most active years in its business history. Mr. Morgenthau urged capital to enter productive channels in private industry. The Washington correspondent of the New York Times states that plaus for stimulating a nation-wide private housing programme are emerging "from a conference between President Roosevelfc, five business leaders* and the Gov. ernment advisers. The programme is designed to stimulate residential and iudustrial construction, backed entirely by private capital. The correspondent reports that President Roosevelt coutifiUes his confereuces regarding the economic recessioii. "It is believed," he says, "that consideration is being given to the employment of social security reserve funds to foster a gigantic industrial and building drive. Tliis would mpke possible the balaiicing of the Federal Budget and yet make available large sUms of money for iudjistrial loans. "Other likely steps are the relaxation of burdensome taxes and measures to halt the mounting of prices of goods. "In the meantime, business men are genuinely worried by the outlook."