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Show Change in Federal Policies Puts Brake on Budding Boom irMra Netet TWe fa n lipisS tm m seek Mw MM hIIm ' Ik karksraaaS ml Ika akrapt -ril la Ma Mm MHihi la llllllll, stave-ael stave-ael Mtatt k eU attest k tow By FREDERICK GARDNER AND SMITH REAV1S ,NEW YORK, Oct. 6 (AP How much changes In Washington pending policies hsve acted to check the "boom" psychology In Wall itreet ince last spring ii admittedly a matter o( conjecture, but moit analysts agree, of considerable Importance. It waa nearly a ysar ago that Presidsnt Roosevelt told a Democratic-rally - tn- Brooklyn: "Wl primed the pump by apending money In direct relief, In work relief re-lief and In publlo works." Today a 116.000.000.000 flood or monsy borrowed by the government end poured into spending channels since 1933 is needing. The vaat nsw deal pump priming experiment appeara to have reached Ita crest in 193. The heavy government spending haa received much of Ita aharpest criticism in Wall street, where bankers havs Insisted upon ths need of a balanced budget to restore confidence, con-fidence, but most say thia apending haa naturally been factor In recovery. re-covery. It an actual balance between government gov-ernment cash Incoms and outlay la raached. the American buaineaa machine ma-chine will be faced for the first time in years with ths prospect of going forward on Ita own. cuiity and related revenues, running run-ning at tha rats of about tiooo.. 000.000 annually. Tha rest of ths reduction, accounted for by a cut of soma 11.600000.000 in relief and works expenditures, la of course subject to later revision. Use of credit to bridge tha gap between expenses and receipt not counting borrowings for sterilisation sterilisa-tion of gold waa smaller than the federal deficit Indicated, bankers pointed out. It waa figured social security collections topped tranafsrs to trust accounts, mainly old age reserves, re-serves, by about 1100,000.000 in tha throe months, giving ths treasury that much extra cash to substitute for credit. Many have auggsstsd lately the shift In Washington, aimed to pasa tha ball In tha borrowing and apending apend-ing game to business, may be at least partly accountable for slowing in ths recovery pulse. Transition Began President Roosevelt In his trip to ths northwest haa spoken of balancing balanc-ing the budget In the fiscal year starting nsxt July. Wall street and Washington experts ex-perts point to current treasury reports re-ports aa ahowing evidence we may already be In a transition phase. They add, however, the action of congress on appropriations and taxes next yesr will tsll a big part of the story. Until recently, government spending haa been marked by heavy borrowing at tha banks. When ths govsrnment finances itself by collecting col-lecting taxes, and apending the taxea, that does not tsnd to build up bank deposits, for ths payment of taxea pulls deposits down, as the spending of the money paid pushss them up. Soms analysts point to an Indicated Indi-cated $3,500,000 decrease In the amount of money In trade channels for ths fiscal year which started laat July 1, compared with the previous previ-ous fiscal ysar. An offset, of course, is biggsr farm income and payrolls. On the outgo aloe there la no 11,000.000.000 caah bonus to vstsrans, aa waa paid n ysar previously. On tha Incoms slds are the social se- |