Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-09-06
Budget Bureau
Took Funds for
Reconyersion
Policy Of Agency
Outlined to Agency
Heads by Smith

If Government expenditures will
aid reconversion, full employment
and increase trade and industry
they probably will get the green
light from the Budget Bureau.
This policy of helping employ
ment and reconversion was out
lined In letter of Budget Director
Harold Smith to heads of Federal
departments and agencies and the
District government for preparing
1947 budget estimates and supple
mental requests for 1916.
The letter sets forth revised
budget policies resulting from the
defeat of Japan.
Aim at Full Employment.
In reviewing budget requests fol-
1947, Mr.. Smith said the bureau will
be guided by 1.-The overriding con-
. sheraton that the prime objec-
tlves of domestic policy are to set
the stage for full employment after
the war and to continue the trends
of social end economic progress
which were interrupted by the war;
Since deferred private demand
will still be high in the fiscal year
1947, the Budget Bureau said "esti-
mates for authorized public con-
struction and improvement pro-
grams should be limited to those for
which there is the greatest civilian
need, both from the standpoint of
economic return and social benefit"
Those projects which would i'm
pede the flow of materials and man.
power to private industry insofar
as possible should be deferred until
a later year." it was stated. Con-
sideration will be given to estimates
for planning and investigations of
authorized public works projects for
future initiation"
Military Needs Uncertain.
The budget director said 1T will
not be clear for some time what mill
tary appropriations will be required"
in 1947 and that the size of our
peacetime military establishments
has not been determined. 1t is also
uncertain, the letter said, how long
1t will be desirable to retain certain
wartime controls in the interests of
economic stability.
Transition from war to peace, 1t
was. conceded, may require "a linn
tied number of supplemental esti-
mates for 1916" If authorized un-
der existing legislation, supplement
tary requests will be given consid-
Grafton for the following purposes:
To provide for increased outlays
for such things as unemployment
compensation, social security, voca-
tional rehabilitation, and other pro-
grams relating to veterans.
To provide for the expansion Of
Government services where such
expansion is necessary to facilitate
reconversion of industry and the
relocation of the labor force.
Industry Comes First. =
To provide increased planning
funds for authorizet Federal public
works. 1t was said in the imme-
date postwar period estimates for
authorized public works projects
should also be limited to those for
which there is the greatest civilian
need, both from the standpoint of
economic return and social bene-
fit"
1t was further emphasized that
Federal construction during this pc
riod would interfere with construc-
ton and conversion of facilities
needed by industry to provide post
war jobs.
Supplemental budget requests
also will be considered to continue
necessary Government functions
which are financed by funds that
will end before June 80 of next year;
to provide for the liquidation of
agencies created by Congress which
expire before next June 80, and to
provide for increased costs under the
Federal Pay Act. Such latter re-
quests should be deferred until De-
cember for action by Congress in
the third quarter of the fiscal year,
1t was said.
Regarding the 1947 budget, 1t was
said consideration will not be given
to estimates for new activities for
which no basis exists in legisla-
ton" In addition, it was stated,
1947 estimates should be based on
40-hour work week throughout the
Government, that welfare and bene-
fit programs may be increased "in
accordance with needs" and that
necessary supplies and equipment
should be acquired to the fullest
possible extent from Government
SURPRISES.
End Defense Activities.
Appropriations headed National
Defense" or National Defense Ac-
Invites" will be discontinued in
1947, and activities now financed
from these sources that have to be
continued will be provided for
under the proper regular appro-
priations. This, according to a
bureau spokesman, means if an
agency or department has to con-
tinue certain work, which has been
supported from the national defense
appropriations, it will have to seek
appropriations for it under its reg
ular budget.
Declaring the defeat of Japan
means revision of the basis for max
ing 1947 estimates, the letter said
that 1947 budget estimates should
be accompanied by supplemental
requests for 1916 and statements
explaining the plans and the policies
involved and the reasons for them.
They will not take the place
OF the detailed justification for each
estimate" Mr.. Smith said. Should
you believe that certain activities
required by statute should not be
carried on, that fact should be
brought out and drafts of appropri-
ate legislation should be submitted
amending the provisions of the law
involved"