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Show Hope of Layman's Balance In U. S. Budget Abandoned WASHINGTON, Oct. 19 (UP) President Roosevelt abandoned hop today of a layman's balanced budget In thii fiscal year and presented the country with alternative! of quick economy or higher taxes to bring expenditures within federal revenue. Mr. Roosevelt's October budget re- port confronted the nation with Its eighth consecutive deficit end point-led point-led the public debt toward a new, t37.0ou otJO.OOO high mark. Mr. Roosevelt acknowledged that the treasury's gold sterilisation policy pol-icy probably would force the public debt considerably beyond the Tt,-U.sot732 Tt,-U.sot732 figure Indicated in this budget summation. But sterilised gold is rated a prime asset and available avail-able always to reduce the debt at Its fare value. Mr. Roosevelt's refer-1 ence to gold waa intarpreted to mesn-that mesn-that the treasury would continue to! buy all metal offered here at new deal pricea. Deficit Katlmalrd Trimming revenue estimstea and increasing his apsnding schedule. Mr. Roosevelt looked to a gross deficit defi-cit of t89o.24S.00O on June 30. 1M, the cloaa of this fiscal ysar. Ha estimated esti-mated the second largest federal Income In-come In treasury rscords. Ths nst dsficlt, excluding 1300.-000.000 1300.-000.000 for statutory debt retirement, will be tsM.243.0O0. Revised budget estimates were made public her last night aa Mr. Roosevelt, In a Community Cheat speech from Hyde Park, N. T., was saying: "Wa all agree that unleaa federal taxea are to be greatly increased, the expenditures have to be brought within the existing tax receipts." Ths two presidential statements are expected to arouse an economy storm In th extraordinary aaasion of congress which will convsns November No-vember 15. They appeared In the midst of ths most ominous stock market alump alnca the new deal took command. Corn Loans Considered Congress might howsver, expand the apendlng program and further unbalance the budget. Mr. Roosevelt scheduled 110.000,000 for "supplemental "supple-mental Items" to cover overspending overspend-ing In soma categories and possibly additional expenditures ordered by congress. One auch likely Item waa loan on thla ysar'a corn crop, understood un-derstood to be under asrious consideration. consid-eration. Former Governor Alt M. Landon, apeaking tonight in Topeka. Kan., to reassert hi leadership of the Re- publican party, probably will make the Roosevelt fiscal report a major theme. In hia budget aummatlon and revision re-vision of more optimistic January and April eatlmataa, Mr. Roosevelt reported laat night: 1. Rsvenue for thla fiscal ysar sndlng June 30, 19M, will be t,S0,-410.000, t,S0,-410.000, aecond largest In treasury records. 1 Expenditures will total t7.54S.-688,000, t7.54S.-688,000, a decrease from peak of th l3t and 137 fiscal yeara. Reasons Sees I. Disappointing tax revenue and congressional appropriations beyond budgstsd levels are largely responsible respon-sible for the unexpectedly large deficit Mr. Roosevelt did not analyxa the factors contributing to reduce income in-come and other tax revenue 1643,-000,000 1643,-000,000 below January eatlmataa. Income In-come and social security taxea fell fartheat below estimates. But he detailed de-tailed congreasional appropriations which added an unsxpectad t344.-000,000 t344.-000,000 to federal costs for this fiscal year and explained hia economy program Instituted last April would partly offaet that unexpected charge by aavlng t323.000.0O0 unforeseen expenditures ex-penditures since laat April ware Hated Hat-ed as follows: 1. Expansion of the railroad retirement re-tirement act tll3.000.000. X Congreasional subsidies to farmer borrowers from federal land banks and from land bank commissioners. commis-sioners. t40.000.000. I. Congressional refunds to statea of certain social security revenue, tM.000.000. 4. Extension of P W A and Increase In-crease In available funds, t28.000.000. 6. Cotton crop loans, tlJO, 000,000. t. Downward revision of treasury treas-ury revenue estimates. t2M.000.000. |