Statement on the Federal Budget.

THE PRESIDENT said:

"The departmental budgets for the fiscal year beginning next July have proceeded far enough to enable me to state that appropriations which will be proposed to the Congress will show a reduction of at least $350 million below that of original departmental requests. Every department in the Government is cooperating; every item has been cut; every item postponed that can be done without injury to the fundamental purpose of the departments and the efficiency of the services. As nearly half the expenditures of the Government are for interest, sinking fund, veterans' services and other items which are irreducible, this cut represents most earnest cooperation by all the departments of the Government in their endeavor to meet the necessities of the taxpayer and the present economic situation.

"Again I wish to refer to the many sectional interests throughout the country who are asking us to increase expenditures. Such action can only embarrass the earnest efforts of the administration and the Congress to maintain our governmental finance on a sound basis. Many new plans of different sections, meritorious in themselves, must be deferred until the country can afford to pay for them. Nothing will contribute more to the return of prosperity than to maintain the sound fiscal position of the Federal Government."