Madison Courier on Federal Spending

February 17, 1930

October 29, 1929 is commonly referred to as Black Tuesday - the day the stock market in the United States crashed. This brought an abrupt halt to the "roaring twenties," which were characterized by a decade of extreme fortune and lavish expenses. The stock market crash was dramatic evidence of the downward spiral of economic failure from which the nation would not fully recover until the economic boom caused by World War II. In this month, February of 1930, it had been just a few short months since the stock market crash, and already small towns like Madison, Indiana, were beginning to feel the hit. This article gives an interesting look at where and how much money the government was allotting in a time of already great economic strife. The situation was already bleak at this time, the government being able to provide around half of the necessary funds, and it would continue to get worse throughout President Hoover's tenure. - John Collier

N.B. The text below is transcribed verbatim, including the occasional typographical error.

"Deficiency Bill of $48,151,854 Reported Today to the House" Madison Courier, 17 Feb 1930.

WASHINGTON, Feb 17 -(AP)-Providing Funds to be made available immediately for urgent needs in nearly every branch of the government, the first deficiency bill, appropriating $48,151,854 was reported today to the house by its appropriations committee.

Altho the committee did not act on all of the supplemental estimated, amounting to approximately $90,000,000, submitted by President Hoover since congress convened, it slashed the budgets estimates in this bill by $3,246,281.

The largest outlay, aggregating $15,250,000, was allotted to the veterans' bureau. Of this, $8,000,000 was set aside for the initial outlay on the $15,900,000 hospitalization program recently authorized by congress, and $7,250,000 for military and naval insurance to cover lump-sum payments to beneficiaries of deceased veterans.

The sum of $206,000 was set aside for the executive office, of which $100,000 is for reconstruction necessitated by the Christmas eve fire at the white house. The fire at the capitol the week following Christmas cost only $3,000, which was allowed also.

The bill provided $5,740,000 for the additional expenses in taking the fifteenth census and $125,000 for the bureau of reclamation for making surveys of the Boulder canyon dam project and the all-American canal which congress authorized last year.

An initial appropriation of $500,000 is carried for commencing work on the projected $9,140,000 supreme court building.

The committee also recommended a $65,000 appropriation for restoration of the home in which George Washington was born at Wakefield, VA. Provision was made to set aside $32,600 for expenses of arbitrating claims submitted by Canada following the sinking of the rum-runner "I'm Alone" by the coast guard.

To aid the navy in replacing the boilers of destroyers and in carrying on the development of safety devices for the rescue and salvage of submarines, $1,600,000 was allowed.

The treasury was allowed $2,877,711, including a $1,342,000 for the coast guard and $588,840 for public building. The fund for the coast guard allows $850,000 for the new academy at New London, Conn.

The increased population of federal institutions resulted in an emergency outlay of $1,161,380. the federal trade commission was given $240,000 to continue the investigation of public utility concerns authorized by the senate two years ago.

Of the $6,133,000 allotted the agriculture department, $3,670,000 was for the forest service, to cover expenses for fighting more that 7,000 forest fires and for combating infestation of national forests by insect pests. An emergency fund of $188,000 was set aside for the control of the Japanese and Asiatic beetles; $100,000 for the Oriental fruit moth; $20,000 for enforcement of foreign plant quarantines; $25,000 for the Indio, California, experimental plant and $30,000 for the office of the secretary.

A total of $6,434,947 was allowed the commerce department including $5,740,000 for taking the census.

The sum of $259,700 was allowed the aeronautics branch for examination and rating of civilian aviation schools and for regulation of commercial aviation.

Altho $2,033,444 was allotted the justice department, only $466,187 was allowed the judiciary. One of the important outlays was $350,000 for the detection and prosecution of crime.

Of the $1,161,380 for federal penal institutions, the penitentiary at Leavenworth, Kan., received $454,128; the Atlanta, Ga., institution, $173,615; McNeil Island, Wash., 323,198; the institution for women at Alderson, West Va., $84,000, for construction and maintenance. The sum of $120,000 was allowed for support of federal prisoners in state and city jails, and $5,900 for prison inspection.

The labor department received $556,500, of which $350,000 was given for regulation of immigration under the new national origins immigrations act, and $115,000 was allotted for the naturalization bureau for the same purpose.

The post office department was allotted $356,475, of which $325,000 was to cover special delivery fees.

Including the $1,600,000 outlay for destroyers and submarine safety devices, the bill carried a total of $2,184,253 for the navy department. The sum of $105,000 was allowed for the dredging of the channel at Hampton Roads, Va., to permit the aircraft carriers Lexington and Saratoga to reach that operating base.

The war department was awarded $2,738,116, of which $1,844,049 was for the national home for disabled volunteer soldiers. The central branch at Dayton, O., was given $1,475,000 for construction of a sanitary hospital and Marion, Ind., branch, $100,000 for a fireproof hospital.

The federal farm loan board received $50,000 to cover additional expenses caused by increased business.

The measure also provided for an increase in the authorizations of the cost of fifteen public building projects recommended by the joint board of the treasury and the post-office departments. No Indiana projects were included.

The committee in reporting the bill today did not specifically allocate the amount provided for initiation of the veterans' bureau hospitalization program but in testimony the committee Director Hines indicated $500,000 would be allotted for a new hospital in Indiana. The location has not been decided upon.\