Imperial Valley press., 1945-07-31
FEDERAL BUDGET BALANCING
PART OF POSTWAR DUTY

w hen that much-Wanted time, known
as the Postwar period, arrives Congress
Should be primed to take definite steps
toward a job that has been shunted aside
Tor more than II years, namely, balanc-
ing the budget. We must not get to the
Joint where Federal deficits no longer
cehcern IFS nafter and larger deficits
have been necessary in the war years,
but the very magnitude of the last fiscal
deficit should bring Congress up short
and start the national lawmakers seri-
ousy on the problem Of making our in
come and our OutgO balance.
A balanced budget is important whcth
cr we spend little or much, but it be-
comes of paramount Importance when
our expenditures run into the billions.
There is a natural limit to legitimate
income. We cannot set our fiscal course
on fictitious revenue figures as we arc
doing now and have been doing over a
period of years.
For the fiscal year Just ended the
federal expenditures exceeded $1OO0OO,-
100000. An enormous figure, in fact too
large for comprehension. For 1944-45
our total income for everything was less
than half the Outgo. In fact the deficit
was 81 billions.
For the preceding fiscal year the def
icit was 80 billions. AS natural result
of these large deficits there has been a
tremendous expansion in the circulating
media and this has created a base for an
extensive price rise. The problem be-
comes A clear one when we consider that
deficit of five billion a decade ago
was considered plain alarming. Definitely
there is danger that we shall he lulled to
false safety through the elment of war
necessity This must not happen,
Plainly Postwar taxes will not be cut
Wholesale That is, there can be no huge
cut if we are to establish and maintain
a healthy fiscal condition, and the prime
factor in this is to balance the budget.
Ey no stretch of the imagination can
the income jump to figure that would
reduce the deficit even with reductions
in expenditures by the billions. Hence,
We can expect high taxes far into the
Postwar period.
However. honest efforts to cut eXpen-
diturcs will open the way for tax reduc-
tions while sensible economic policies
will help keep the income at a high level.
The new secretary Of the treasury,
Fred NJ. VinSOn, while director of the
office Of war demobilization and recon
version, made a report that stressed
means to increase peacetime prOduc
ton, balance the budget and reduce
taxes Among his observations was this:
"The government must shoulder major
responsibility in adopting constructive
policies to help us reach and hold high
l7vplS of DrOductiOn -
Further commenting along that line
and in respect to a balanced budget
Judge Vinson said eve need to con-
slider and formulate a total budget in
relation to the total economic situation.
A fiscal policy developed on this basis
can stimulate private expenditures Ell
ther by reducing taxes or increasing
public spending whenever the level of
private spending appears inadequate to
sustain full employment. It can raise
taxs or reduce government spending
whenever the level of private spending
threatens initiation"
1t should not be difficult to deter
mine the all-out income capacity Of the
nation There must be, first, determi-
nation to cut expenditures to the lowest
point consistent with adequate govern
mental service and to stop right now
waste that runs into the billions. Only
or these premises can an honest, fair
and necessary budget be figured.