Evening star., 1946-03-24
Public Drive Needed
To BuIunce BUDGET
Observer Thinks Congress Alone
Will Be Ineffective
By Raymond Moley.

| ~SHAeeSSt aAAbSA O 81 diib 4iDlli tlic dlh
Foundation, to recommend an American
| public debt policy is good news w.
Randolph Burgess, as chairman of the
committee, will provide able leadership
! for such job. Despite gloomy pros
poets during the war for any way to
| deal with the colossal Federal debt,
certain CLEANS Of light are beginning
to appear. Here, among all our worries,
is one situation about which something
| can be done.
Ever since VI day, 1t has been In
creasingly clear that balanced budget
| might come before too long. The
Presidents message in January, despite
new recommendations for spending, was
really encouraging. AS further facts
roll in, hope increases. What is needed
now is some real pressure on Washing
ton to fulfill that hope.
February, 1946, should be remembered
as the month when our Treasury found
itself working in black ink.
In the present month, our national
debt has reached almost $3.50 900 900 900.
The prospect is that, even If the Pres
ldents spending proposals are adopted,
1t may be possible to reduce that debt
to S27f 900 100000 by July l, 1s47. II
we get considerably more energy behind
the sale of surplus goods, we can do
better than that. We may cut down the
giant to s265 900 100000
Even debt of that size is more ap-
parent than real. The agencies of the
Federal Government own s26 900 600 900
IN Federal bonds. That is no real part
OF our debt. 1t is Uncle Sans right
hand owing this amount to his left hand.
II we make allowance for this amount,
we get to real debt of S240 900, 900 900
next year.
Even $4,000, 900 900 required for sery-
icing can, with some revision of manage
ment, be cut to s4,5oo, 900 900 annually.
| Ihere, OF course, are economists who
say that a national debt neither in
creases nor decreases national wealth,
except when foreign governments are
creditors. They say that we owe the
national debt to ourselves. This is too
| Specious and theoretical for the average
American, who believes that a debt is
debt, especially when he has to pay
the interest in his taxes.
The budget now under consideration.
Tor the year beginning July l, 1e46 calls
for expenditures of S35.100,0oo 900,
estimated revenues of s31 500 900 900 and
a deficit of S3,60o,ooo0 900.
In this budget are several types of
indispensable commitments-interes on
debt, tax refunds, veterans benefits and
pension, social security, relief and re-
tirement funds. These amount to
sll 00O00,000. OF the remaining s23.-
3oo,ooo,0oo, fair proportion-perhaps
half-can be challenged.
The diplomatic situation makes it
dlfhcult to challenge the estimates for
national defense. But no weakening
OF our armed strength is suggested when
| it is pointed out how vague. and tenta-
tive are many Of the items listed for
defense. The Citizens National Com
m1ttee, OF which John W. Hanes is
chairman and which includes a number
OF sound men, suggests that 81 0OO, 900 900
of the proposed $4,000 100000 for de-
fense are open to challenge.
Spending in the form of loans to
| foreign nations is the great unknown.
We shall have to subscribe 1854 900 ,OO0,-
600 to the international bank That is
fixed commitment. An additional item
Of 81 500, 100000 is earmarked as the
first installment of the proposed loan
to Britain
! Aid to agriculture calls for s50l ,OO0,-
900. But of this, sl9s 100000 are clearly
based on depression conditions. The
reasons for this expenditure no longer
exist. 1t should be vigorously challenged.
A large part OF the billion-dollar
I proposal for public works should be
rejected. In year with short man
power and materials, it is ridiculous to
spend twice as much on public works
as in 1889, when there were millions
of unemployed
In the 81 500 100000 proposal for the
cost of general Government is a lot
of waste. The estimate for the civil
departments is twice the amount spent
in 1889. In some cases, the swelling
of the departments budgets is caused
by expansion of functions during war,
and, of course, no bureaucracy will give
up any such accretions. Moreover, many
war agencies slipped into regular de-
partments and are hoping to hide there,
although the original reasons for their
creation have disappeared. The cost
of the Federal departments could be
reduced 80 per cent by a thorough
sweating out of war-made fat.
Finally, there is a section of the
| spending program which covers supple
mental appropriations and proposed
legislation" 1t provides for $4,000 ,00o,-
000 Two-thirds of this consists of
activities the need of which has not
been established by congressional in
vestigation. They are still ideas, not
blueprints. 1t would seem that there
is more for this Congress to do than
to try to find new ways to spend money.
In all, about $1,000 100000 of the
present budget are open to serious chal-
lenge. This is three times the estimated
deficit. real economy drive in Con-
gress could not only bring the 1947
budget into balance, but cut the debt
by a substantial amount. But Con-
gress will never do this alone. A real
taxpayers drive on Congress is needed.
head and an expressive countenance, his
appearance denoted in a marked degree
| hapiorify nouyar o1orfpocc frork-