Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-06-29

enough WHEN tney Jdlk OH IQe SUD-
ject. The curious thing, however, is
that their acts more or less contra
dict their words. They point with
alarm toward. the threat and then
deliberately move toward it.
For example, every economist con-
siders that the most vital of our
postwar problems is to regain some
kind of control over the Federal
budget. Unless that is achieved,
the other steps we intend to take
and the prosperity envisaged by
the economic authorities will all
be washed out in an uncomfortable
uprush of prices. wages and rents,
the end of which is the reduction
of nearly every one Except the
vastly rich. who can always find
means to take care of themselves)
to the level of utter poverty.
Uncontrolled imitation means the
wiping out of every one save a
fortunate few. Next to defeat in
war, it is the worst disaster.
Stern Necessity to Act.
During the war there can be no
control over the Federal finances.
All restraint has to be abandoned.
We go the limit, as is right. But,
with a national debt now beyond
the 300-billion mark, the stern nee
essity to recover financial stability
as quickly as possible is too clear
to argue. That is basic.
Yet, important men in Congress
and out, who agree entirely about
this, are sponsoring or supporting
measures which, if enacted, would
throw wide open the Treasury
spigots and render anything like
fiscal equilibrium utterly impossible.
There are proposals now pend
Ing in Congress and about to be
presented there which call for the
expenditure of billions of dollars
on new projects, wholly aside from
the billions proposed for care and
compensation of the returning vet
Grams. Nearly every Government
agency has planned for expansion
rather than contraction.
The sum total of these billions is
literally appalling to any one who.
even casually, takes a realistic view
of the fiscal facts. The Brookings
Institution recently made a mini
mum estimate of $22 300 600, 900 lex
elusive OF social security as the
annual postwar cost of running the
Government. This is 16 times as
great as the cost in 1928 and 20
times the cost in 1917. Though, the
report states, the Government will
need $5,000,000, 900 annually to meet
Interest charges on the debt. that
could be handled. The real danger
Is in the Large and growing ex-
penditures for all functions of the
Government"
In other words, unless the present
tendency is checked, the peacetime
cost Of the Government will steadily
mount until all hope of control dis
appears That Is pretty dire pre-
diction, but it is justified by the
prospect.
Sound Course Is Obvious.
The sound course for the Govern
ment in the situation in which it
finds itself seems obvious enough,
1t must combine a continuation of
nigh taxes with real economy. There
just is no other answer. ANY other
road leads to serious strouble. Presi-
dent Truman already has given in
dlcations that this is his belief.
There is reason to feel that Chair
man George of the Senate. finance
Committee and Chairman Dough-
ton OF the House ways and Means
Committee hold similar views.
One might think that this. plus
the Treasury, would insure the
adoption of these ideas. But that
is by no means sure. With the 1946
elections looming, there will be a
determined effort on the part of
large group to lower taxes for mex.
year and at the same time provide
increased funds for public works.
1t Is the most dangerous possible
combination. 1t is the exact reverse
OF the Truman policy for 1916,
which is to make no reduction in
taxes for the first year following
the war. but to institute large eco
Monies throughout the entire gov
ernmental machine. In that way
and that way onlv-can the Govern
ment keep on top of its fiscal prob
lem, avoid being drowned by the
spenders. After the first year a grad
ual reduction each year for a To-
year program Is planned