PAGE SIX THE MICHIGAN DAILY

1934 To See
New Peak In
National Debt
Treasury Estimates That
Billion A Month Needed
For First Half Of Year
WASHINGTON, Jan. 4 - (A') --
Government spending at more than
a billion dollars a month for the first
half of 1934 and a new peak in the
national debt was forecast today in
the treasury's annual report to con-
gress.
The report was in the name of
William H. Woodin as secretary, hav-
ing been prepared before President
Roosevelt on New Year's day named
Henry Morgenthau, jr., to the cabi-
net post.
It estimated emergency recovery
costs alone would be $6,357,486,700
during the fiscal year that ends June
30, and general expenses $3,533,691,-
767, for a total federal outlay of
$9,891,178,467 and an operating defi-
cit of $6,631,239,711.
Woodin predicted a public debt at
the fiscal year-end of $28,679,969,-
728 as compared with $22,538,672,560
last June. The previous debt high, a
result of war costs, was $25,484,506,-
000 in 1919. The post-war low was
$16,185,309,000 in 1930.
For the fiscal year of 1935, the
treasury foresaw a return to a pay-
as-you-go basis for both general and
emergency expenditures, with the
latter dropping to $723,286,500.
The operating deficit for 1935 was
estimated at $511,897,021, a figure
smaller than the sinking fund re-
quirement and indicating conse-
quently a $15,477,708 reduction in the
public debt.
It was estimated that the govern-
ment would spend nearly three times
as much in the six months from now
until June 30 as in the first half the
fiscal year. For emergency purposes
alone the spending will be about five
times as fast.
In discussing the future, treasury
also noted:
"Of the emergency expenditures
made up to and including the fiscal
year 1935, it is roughly estimated
that $2,500,000,000 represents loans
that will be repaid to the govern-
ment during the fiscal year 1936 and
subsequent years, which repayments
will be available for reduction of the
public debt.
"The estimates of expenditures of
the RFC are contingent on the en-
actment of legislation extending the
corporation's authority to extend our
obligations to June 30, 1934. If the
authority is not extended, the esti-
mated expenditures for 1934 will be
reduced by $903,000,000 and the net
repayments for 1935 ($480,436,000)
will be reduced by $74,000,000."

100 U. S. Fighting Ships
Assemble For Exercises
SAN PEDRO, Calif., Jan. 4. -()
- More than 100 fighting ships of
the United States navy had secret
rendezvous today off the southern
California coast for three days ofj
battle exercises.
The dreadnaughts, aircraft car-
riers, cruisers, submarines and de-
stroyers had sealed orders to be op-
ened after departure from their bases
here and at San Diego.

Trick Bolts Puzzle
Liquor Store Staff
PHILADELPHIA, Jan. 4. - (R)-
The hardest work of the staff in one
of Pennsylvania's new state liquor
stores was to go home. There were
locks aplenty, and bolts, too - and
all worked from the inside. After an
hour of investigation and confer-
ences, the manager and clerks locked
the front door of the former bank
building and slipped out of the rear.


Varsity-tw
N SuiOts
Overcoats
for onl-
--but only while a limited
quantify holds out !
SUCH a price, in face of rising costs,
is indeed startling - but it's impor-
tant to realize that the quantity is limit-
ed - and that when these are gone the
opportunity will have passed! BUY
TODAY!
Wild & Company
on State Street
~JL _ _ _

JANUARY
SALE=
of
1Hats, Shilrts
and Neckwear
Any TIE in Our Entire Stock
68C
Any Colored SH IRT in Our Stock
$1.68 &*
Any HAT in Our Stock
Get in on this Sale.
There are some wonderful values
to be had.
Tin ker &Company
South State at William Street

4'

READ THE DAILY CLASSIFIED ADS


It adds something
to the Taste and
makes them Milder


I

770

EUROPEAN
WINE CELLAR

S OMETHING like the method
of ageing fine wines is used in age-
ing and mellowing the tobaccos for
Chesterfield cigarettes.
The picture you see here was taken
inside one of our modern storage ware-
houses where the tobaccos for Chester-
field are put away.
There are about four and one-half
miles of these Liggett & Myers ware-
houses filled with thousands of casks of
Domestic and Turkish tobaccos, most
of it lying there ageing and mellowing
for Chesterfield cigarettes.
It takes just about three years to age
the tobacco for your Chesterfields.

a c.w