Evening star., 1946-08-01
Truman Calls On
All Agencies TO
CutExpenditures
Asks Action This Year
Saying Present Fiscal
Situation Is Serious
By Joseph A. Fox

President Truman today de-
clared that "our present fsca
situation is a most serious one
and called on all Federal agen-
cies to cut down on expenditures
The President said in letter tc
the agency heads that he expected
the executive establishments to alb.
sorb the recent pay increase BY
improving personnel utilization"
Mr.. Truman added further that
smaller economy should not be over
looked and that in this connection
the Federal Government should not
compete with private demands fol
such items in short supply as con-
Struction materials automobiles ano
office equipment.
The President made his statement
public at news conference at which
he announced he Will hold a budget
seminar with newsmen at 3 pm
tomorrow. This will be prelimin-
AIRY to the submission of the revised
budget which IS prepared annually
in midyear.
Budget Deficit for Year.
I'VE are faced with a continued
substantial budget deficit in the
present year" Mr. Trumans state
ment said. Even those Federal
expenditures which are most neceS-
SaTy have the effect of increasing
inf1ationary preSsureS in the total
national economy
Mr.. Truman asked public works
agencies Ito postpone commitments
and actual construction SO far as
possible, and to keep their eXpendi-
ture programs within certain speci-
fed totals
He asked each of the depart
ments to review expenditure pro-
grams and not to hesitate to elm
mate work of low priority
Mr.. Truman's statement followed
disclosure of a solid front presenta-
ton by Gen. Eisenhower and Ad-
miral Nimitz against any further
cuts in Army and Navy budgets.
Expenditures Up.
It also came on the heels of a
disclosure by Secretary of the Treas
ury Snyder that Government eXpen-
ditures during the current fiscal year
probably will run $4000,000 to
S5000,0000 higher than the $35,-
64,000,000 contemplated last jan
uary.
The text of the Presidents letter
follows:
The present infationary situation
and the need for reducing the public
debt make it imperative that eX-
penditureS be held at the lowest
possible level. You have already
been advised of the policies that will
govern the 1948 budget and I shall
expect to see those policies reflected
in your 1948 estimate as submitted
to the Bureau of the Budget. This
letter is intended to direct your at
tention to the need for economies
in the fiscal year l947.
"Our present fiscal situation is a
most serious one. We are faced
with continued substantial budget
deficit in the present fiscal year
Even those Federal expenditures
which are most necessary have the
affect of increasing inflationary
pressures in the total national econ
omv. We must do everything
within our power to reduce intia-
tionary pressures, One of the most
effective means of doing this is to
reduce Federal expenditures.
Review of Spending Urged.
Toward this end I have sent let
ters dealing with specific programs
TO the heads of a few departments
I am asking the Secretaries of Wal
and Navy and the Maritime Com
mission to reduce expenditures sub
stantiallv below the amounts they
had previously Programmed for this
fiscal year. I am asking various
agencies concerned with public
works to postpone commitments anC
actual construction so far as pos
sible, and to keep their expenditure
programs within certain specified
totals.
"T'hese specific steps must be ac-
companied by similar measures fol
all OtneT feueIdl lullCllOllS ana dC'
tivities which will reduce expendi-
lures materially under the amounts
previously estimated for the present
year. Accordingly, you are requested
to review the expenditure program
OF your department or agency. Ir
view of the present fiscal situation
you should not hesitate to eliminate
work of low priority.
I'm addition to such major cur.
tailments as may be possible, similar
economies must not be overlooked
In this connection. it is particular!
important that the Federal Govern.
See EXPENDITURES, Page Al