Evening star., 1938-10-14
DEFENSE SURVEY
DELAYS ESTIMATE
Of BUDGET NEEDS
President Says Study Was
Forced to Head by
World Events.
PROJECT UNDERTAKEN
is ENTIRELY NEW ONE
Mass Production of Planes and
Other Equipment Are Among
Items Considered.
Es the Associated Press.

Es the Associated Press.
President Roosevelt said today he
was making an entirely new study of
the Nations national defense needs
and that until it was completed he
could not estimate next years budget
The President told press confer
ence he could not comment on the
new budget because new technical de-
velopments in national defense meas
ures required complete restudy OF
defensive requirements.
He said the reason for the reassess-
ment Of these needs began to take
shape about year ago because of in
formation coming in in connection
with world events. He said the ques-
ton was forced to a head in the last
month. In response to a question. he
said the new information was of a
technical rather than political
nature.
Many Checking Situation.
Asked about yesterdays statement
by Bernard M. Baruch, chairman Of
the World War Industries Board, that
America was unprepared for war be-
cause of lack of sufficient first-class
equipment, the President said he had
not read the statement. He added,
however, good many people were
checking the situation in connection
with new elements that have come into
the defense picture in the last three
or four years.
One of the things being studied, he
said, was that of mass production OF
war equipment, including airplanes,
power and other items. He said the
production question was something
new and intimated one of the phases
to be studied was standardization Of
plane production, which some coun-
tries already have adopted.
The President preferred not to talk
about detailed items at this time re-
garding defense needs, saying he
wanted to study the whole picture SO
as to give the country complete idea
Ut the proper time
Making Final Revisions.
The President, Secretary Morgen-
thau, Daniel w. Bell, director Of the
Budget, and John w. Hanes, Assistant
Secretary Of the Treasury in charge of
taxes, have been discussing the budget
outlook for both this and the next
fiscal years.
, The President is making his final
revisions for this years budget and,
at the same time, making the first
estimates for the year beginning next
July l.
This years budget Of about $9,0oo,-
100000 was the largest in peacetime
history. Any prospect Of lowering the
1889 budget probably will hinge largely
on the possibility of cutting down relief
expenditures. Mr.. Roosevelt already
has said that national defense costs
will rise. Further, much OF the money
allocated this fiscal year by the P.
w. A. will not be disbursed until next.
Baruch Sees Threat.
In his talk to reporters after having
been an overnight guest at the White
House, Mr.. Baruch said that, although
Germany had annexed Austria and
partitioned Czechoslovakia, she had
not gained all the raw materials or
markets she needs. This fact, he said,
would lead her to look elsewhere.
THE threat to the United States
from Germany" he added, lis in
South America and is real and i'm
mediate
Speaking of American unprepared-
ness for war and how to overcome it,
the New York financier urged that
mass production be applied to the
Nations production of new arms.
Our air forces are not what they
should be-" he asserted I'VE haven't
quantity production as in Germany
We ought to produce a minimum
quantity of planes for our needs now
of proven types and arrange for mass
production in an emergency. Improve
ments can be made in replacements
I'VE have no munitions manufac-
turers in this country now. Our
needs include shells and big guns we
don't know yet how to make"
Ready Win Plans.
After learning what the President
had said at his press conference, Army
and Navy officers said they were ready
with extensive rearmament proposals
If the new study of national needs
resulted in a request to Congress to
step up military appropriations.
The Army, officials said, needs new
guns, planes, and motor vehicles. and
several thousand more officers and
men.
The general staff hopes Congress
will provide $30,o0O000 to repair de-
ficiencies in anti-aircraft guns and
other defenses against air raids.>
The Navy already has disclosed it
will ask for funds to start two battle
ships and q score of smaller warcraft
in addition to the four score now
building or appropriated for.
Wants More Bases.
Further the Navy wants to mod
ernize five of its present Is battle
ships and two aircraft carriers, to
build more bases and strengthen ex-
listing establishments.
Warship construction alone will re-
quire $3.50, 900 more than last year,
Mr.. Roosevelt has estimated.
The determination of defense needs
already has started a study of weak
nesses in the power systems serving
the Nations Eastern manufacturing
centers.
Out Of this power study, financed
by $250,000 of Public Works funds,
may come an extensive program Of
linking utility systems more closely,
administration officials declared. Wall
Reet has heard it may involve bill
"