Evening star., 1941-11-15
Billion kon-Defense
Cut Wins Support
Of Economy Group
Slash in Farm and Road
Appropriations Draw
Immediate Objections

By the Associated Press
A special economy committee was
reported virtually unanimous to-
day in the view that non-defense
Federal expenditures could be cut
at least sl.OOO.0OO.0OO annually, but
two key suggestions by Secretary
Morgenthau-drastic reductions in
farm and highway spending-dreW
immediate objections.
Secretary Morgenthau. a mem
Der of the l4-man committee, out
lined his economy program at q
closed meeting yesterday.
Besides suggesting that Congress:
eliminate the projected S139 000.-
600 Federal State road ap-
preparations for the 1923 fiSca
year and make drastic cuts in oul
agricultural expenditures" the
Treasury head said that non-es-
sential reclamation, river and mar
Dor and f1ood-control projects might
be postponed; that the Civilian
Conservation Corps and the Ma
tional Youth Administration might
be wiped out or drasticaly cur
tailed and that vocational training
activities might be consolidated in
new defense training bureau.
McKellar Backs Road Funds.
Senator McKellar. Democrat, oi
Tennessee, a committee member
who told reporters he had beer
fighting for highway expenditures
for 80 years. said the road program
is "exceedinly popular" in Congress;
and Il can't think of any other
thing that would get as many votes
as highway aid grants.
AS to curtailment of the farm
spending, Senator McKellar asserted
that I'VE have been working for 1C
years to raise farm prices and we
can't afford to injure them now
But the Tennessean said he be-
lieyed expenditures could be cut by
from $1,000 100000 to 81 500 900 OO(
a year "and not hurt anything.
For example, he said. Il can see nc
reason why We need to keep the
C. C. c. now" He added that, be-
cause of the increasing employment
in defense industries. substantial re-
ductions might be made in WORK
relief funds.
100 Million to Be Turned Back.
Meanwhile. Federal security offi'
cial working out plans to consolidate
the C. c, C. and the N. Y. A. sale
the two youth agencies probaol!
would turn back to the Treasury
about 100000, 900 of their approprl'
ations for the current year.
He estimated c. c. c. would have
$50 900 900 unexpended OF its s247,'
600 900 fund and the N. Y. A
$50 600, 900 out of an appropriation
of S15l 100000.
j. J. McEntee. C. c. c. director
had announced he intended to turr
back to the Treasury over $4,000 ,OO'
of the appropriation for his agency
and soon would cut the number o
&C. C. camps to 872, against a tota
of 500 camps last January.
The Federal Security spokesman
said the amount to be saved by tn
two agencies would depend on de
velopments in their defense activity
and emphasized that the figures n
gave we're estimates.
10000 Now in c. c. C.
The c. c. C. now has 10000 en-
rollees and the N. Y. A. is aidin
around $4,000 youths.
It was reported authoritative
that Secretary Morgenthau, Senate
Byrd, Democrat, of Virginia, tn
| committee chairman, and othe
members Of the group were in gen
eral agreement that $1,000 100000
cut in non-defense spending shoul
be the rock bottom minimum. Sen
ator Byrd himself. however, said n
believed cuts totaling between 81,
500 900 900 and $4,000 100000 coul
be effected in the next fiscal year.
Senator Byrd said the committed
which consists of himself, ii othe
members of the Senate and Hous
taxing and appropriating commit
tees, Secretary Morgenthau an
Budget Director Harold Smith
would suggest specific economies b
December l5-about 20 days in ad
vance of the Presidents annua
budget message to Congress.
Secretary Morgenthau told re
porters that even if substantial cut
were made in non-defense expendi
lures, additional taxes still would b
needed.
! "And howl" he added.