Evening star., 1941-09-07
Opportunities for Non>Defense
Spending Reductions Analysed
Items Backed by Powerful Political Groups Found
to Offer Most Fertile Field for
Economy Operations
By Artanr Whipble Craw,ford
By Arthur Whipble Crawford.

pUIe SFu"JObos
average rate of interest has decreased
from 35 to 25 per cent.
Undoubtedly there are many oppor-
tunities for savings in the costs of civil
departments of the Government but the
aggregate would be relatively small.
Thus, if an arbitrary cut of 10 per cent
were made in the total of $1,03O,0000 900
for departments and agencies and for
the legislative and judicial branches the
saving would be only a little more than
S100,000000. A 20 per cent cut would
mean only little more than 5000 900 900.
Neither of these amounts would go far
toward goal of 81 500 900 or $2000,-
100000 Current appropriations under
this heading are more than double actual
expenditures in the fiscal year 1884 and
about so per cent greater than in 1887
and 1888. The increased costs are due to
the creation of new independent agencies
and an expansion of activities of old de-
partments, for most of which there is
statutory authority outside the appropri-
alton bills.
Farm Appropriations.
The item of aids to agriculture offers
probably the most fertile field for a
substantial cut. Most of the proposals
of economy groups are for reduction
of the S11OO,0OO0O0 by about one-half.
This would put the agricultural adjust
ment program on about the basis Of
1886 and 1887 1t would give the farmers
so per cent more aid than they had in
1888 and almost twice what they had
in 1884, which was the first year of
subsidy to this element of the popula-
ton. Aid to agriculture reached
billion-dollar total in the fiscal year 1910.
Secretary Morgenthau is on record for
a reduction in aids to agriculture but
Board of Governors of the Federal Re-
serve System. is opposed to it. The
agricultural officials of the Government
are expected to resist any reduction of
a major character.
The work relief item is another which
is highly controversial While some
would like to shift the bulk of this bur-
den to the States, it might be suicidal
politically for any administration to re-
pudiate responsibility for relief which
the Federal Government first assumed
in 1888. If actual expenditures for work
relief are held to the 1885 900 900 appro-
priated the total will be smaller by
about so per cent than any previous
outlay for this purpose. Although the
defense program has greatly increased
employment, the funds for work relief
now available are declared by admin
istrative officers to be inadequate for
existing needs. Hence, no further re-
duction is likely without stiff opposition
The item of veterans pensions and
benefits is not susceptible of much re-
duction.
Public Works.
The item of general public works in
cludes highways, the Tennessee Valley
Authority, reclamation projects, improve
ment of rivers and harbors, flood con-
troll, public buildings and grants to public
bodies In view of the fact that many
of these are interviewer with the de-
fense program, difficulties will be en-
countered in any attempt to cut the
total below the S53O0O0000 appropriated
for the present year. Most of the
economy proposals, however, include the
slashing of the item by about one half.
The $470000,000 appropriated for social
security cannot be reduced much with
out revision of the present Social Sc
curity Act. The greater part of the
total is for grants to the States.
The item of aids to youth will provide
much controversy. This includes the
Civilian Conservation Corps and the Ma
tional Youth Administration, both activ-
ties which had their origin in depression
conditions. Congress appropriated s247,-
100000 for the Civilian Conservation
Corps as against actual expenditures in
the last fiscal year of S257 900, 900 and ap-
propriated $92,0O0000 for the National
Youth Administration as against actual
expenditures last year of s136,000,000.
The remaining item of 100000 for
refunds of taxes and other Government
charges in compliance with court and
administrative rulings cannot be re-
duced
Reductions of 81 900 900 900, 81 500 ,000,-
900 or S20OO,OOO 900 in non-defense ex-
penditures are theoretically possible.
Whether public opinion will become suf-
f1ciently aroused to force the admin
istration and Congress to join in a dras
tic economy movement remains to be
seen,