Message to Department Heads on Setting Up Reserves.

To the Heads of the Executive Departments, Establishments and Agencies:

In preparing the apportionments of funds available for the fiscal year 1938, as called for by Treasury Department Circular No. 494, Revision No. 4, of June 11, 1937, it is my desire that there be set up such reserves as will amount in the aggregate to not less than ten percent of the total amount of all funds that are properly susceptible to the establishment of reserves for that fiscal year. It will not be possible, of course, to establish a reserve in such an appropriation as the one for payment of interest on the public debt; and there will be numerous appropriations where it will be impracticable to establish a reserve of as much as ten percent. In the aggregate, however, the reserves should equal that percentage of all apportioned funds susceptible to the establishment of such reserves; and I have asked the Acting Director of the Bureau of the Budget to see that the apportionments for the fiscal year reflect that accomplishment.