Evening star., 1946-10-21
Deficit May Be More
Than S1,900,OOO,OO
Fiscal Officials Feel
by the Assoeioisd Press

Inc argument over whether the
Governments current budget is 60
ing to wind up in the red or black
revolved around anew point today
Although on somewhat lower
strata of ofhcialdom than when
President Truman and Secretary OF
the Treasury Snyder were directly
involved earlier this month, the
clashing views were just as puzzling
Reconversion Director John r
Steelman touched off the latest
furry by announcing in effect that
/. Mr.. Truman's $500, ,000, 900 limit
on Federal public works projects
during the fiscal year ending June 80
is being discarded.
Q. Fourteen agencies will be al
lowed to spend an extra $500, ,000. .000
on such work, bringing their total
for the year to $1,000, 900, 900.
8. The programs of three other
agencies are being reviewed and in
creases may be announced later this
week.
May Exceed $l,JUU,VVV,UUV.
The 5000, 100000 public works CELL
ings was one of the items MIR. Tru-
man set forth in outlining a pro-
jected $2,100,000,000 economy pro-
gram in August.
Noting Mr.. Steelman's Saturday
pronouncement, officials whose work
is concerned exclusively with fiscal
matters said that seemed to clinch
it: The budget not only is very un-
likely to be in balance when June 80
rolls around, but the deficit may be
greater than the 81 ,900, ,000, 900 pre-
dicted by the President in August.
Anthony Hyde, Mr.. Steelman's
deputy, jumped into the argument
at this point to say that no such
Interpretation should be made OF
the Steelman action Actually, he
added, the public works spending
may be held close to Mr.. Truman's
original ceiling.
Military Programs Included.
Mr.. Hyde told newsmen part OF
the $500 600, 900 increase applied to
some military programs as well as
public works, and that furthermore
the total was in terms of "put-in-
place value" which means that the
full amount may not be expended
from the Treasury by the time the
year runs out.
No specific projects were listed in
Mr.. Steelman's order. They are to
be decided by these agencies them
selves: Navy, Interior, Agriculture,
Justice, Treasury and State De-
partments, Veterans Administra-
ton, Federal Works Agency, Recon-
struction Finance Corp, Maritime
Commission, Tennessee Valley Au-
thority, Panama Canal, National
Advisory Committee for Aeronautics
and War Department military
branches.
Limits previously placed on the
Interior Departments Reclamation
Bureau, the Commerce Department
and the Army Engineers for civil
works currently are being reviewed,
Mr.. Steelman's announcement said.
S35, 5,0OO, 900 More for Flood Control.
Earlier last week the previous
$95, 100000 ceiling on flood control
projects had been boosted by $685.
100000 in the wake of concerted
congressional protests.
Those protests had spilled over
into the matter of rivers and har-
bors work, too, and this category
presumably is being reviewed in
connection with Army Engineers
funds.
Mr.. Steelman's followup an
nouncement when this review is
completed may clarity the whole
picture. In the meantime, however,
the situation appeared reminiscent
of the furry Mr.. Truman caused by
telling his october 3 news confer
ence that the budget for the cur
rent year definitely would be bal
anced.
And the President repeated the
assertion a week later even though
Mr.. Snyder in the interim had told
reporters there were mo changes
whatsoever" in the August estimate
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