Business Before the 75th Congress

December 5, 1936

Report Outline
Transition to Normal Government
Future of Federal Revenues and Expenditures
Industry, Agriculture, and Labor
Neutrality and Anti-War Legislation
Special Focus

Transition to Normal Government

The 75th Congress, chosen in the general election of November 3, 1936, will meet for its first session on January 5, 1937. The principal business of the new Congress will be to effect the transition from an emergency organization of the federal government to an organization better suited to the efficient performance, under normal conditions, of expanded federal functions. This will involve scrapping or tapering off the activities of some of the agencies set up to combat the depression and the selection from among other emergency agencies of those whose work promises further service to the national interest and deserves incorporation in the permanent framework of government.

The enhanced prestige of the President, gained from the November landslide, with overwhelming Democratic majorities in the Senate and House, makes it certain that the dominant part in the shaping of legislation will be played by the Chief Executive. His wishes will be followed in the main both in reorganization of the federal establishment and in dealing with all other matters to come before the Congress. There appears to be little possibility of any effective opposition to the administration's legislative program, or the enactment of any legislation out of keeping with that program.

Possibility of a Balanced Budget for 1938

The forthcoming session will be the first in more than seven years to convene under circumstances which hold the possibility of bringing the federal budget into balance. The federal government's revenues during the current fiscal year, ending June 30, 1937, will be the largest of any year, with one exception, in the history of the country. Revenues during the fiscal year 1938 will be still larger. Whether these revenues will be sufficient to cover all items of expenditure will depend upon the limits to be set to appropriations for new purposes at the next session and the lengths to which the President is able to go in cutting emergency expenditures.

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