The midland journal., 1946-11-15
News 6
Behind, DI||1zEl, &C.
THENE'5lNEl!S;;E|IE5!l '5lEl;E|I5
Released by Western Newspaper Union.
NEW BUDGET ECONOMIES
PROVE TO BE ILLUSORY
By PAUL MALLoN

EIOOlNOuAEO
PROVE TO BE ILLUSORY
WASHINGTON. - Strange things
are done in Washington, but the
strangest is on the budget. Actual
ly Mr.. Truman is "economizing up
ward" He is cutting by increas-
ing. He is saving by enlarging ap-
preparations. Actually! Honest!
The President took hold of the
budget, you may remember,
last August 8. 1t was a firm
grip. The headlines said his
grasp, or you might say clutch,
at the situation was "the great
est economy meve since the
Hoover administration" That
economy upped the budget from
36 billion dollars Eyes billi0ns)
where 1t was last January, to
AN billions, a saving which
adds up backwards.
That Is all past history. Now we
are In for some more economy
upward mean. The press has been
unofficially informed that the navy
budget is to be slashed 700 million
dollars more than its original (Aug-
ust) $50 million dollar "slash," and
"the Presidential economy drive
will be 81 $50, ,090, ,000."
MOUNTING COSTS
They do not say how much more
this win cost, but a check at the
budget bureau will show you all
economy Is tending upward, and by
this l do not mean TO say enlarg-
ing, but merely costing more mon
ey than may be saved. Mr.. Tru-
man, it is far more authoritatively
said, in private, is limiting national
defense (the largest in the budget
item) to 1872 billions, or billions
for the army and So billions for the
navy. But unused balances OF old
appropriations give the services a
total Of about 22.9 billions, an
amount about 9.7 billions more
than the appropriated and officially
suggested figure. The usual COM
bined figure used for these services
is about 18 billions, but these above
stated come from budget au4hori-
ties. Mr.. Truman's cuts, "slashes,"
have been made in the unused bal
ances Of old budgets and not in the
current appropriations, am in
formed. This was the "slash" so
widely advertised. Actually what
the President did was to tell his
navy and war secretaries in a con-
fidential letter to limit their expendi-
lures further-meaning to the ut
most in consonance with the neces-
sites of their office.
Of course even with his econ
omy upward he still will be
spending more than IL billions
Eyes billi0ns) above the prewar
year Of 1886. In those days, de-
fense cost only LIZ billions for
both army and navy. (The Rus
sian advertising of economy has
not been added up here YETI
Now this is not as surprising or
confusing as 1t sounds. Actually the
position Of Mr.. Truman's budget
is somewhat like my own and yours.
am econonizing, but II is costing
i
to do the same thing he Is doing,
namely pay more for less, 80 much
more that no matter how much I
economize, my budget runs up.
A STABLE ECONOMY
I wonder if the entire nation and
the world is not in the same fix.
The world talks Of developing a
high wage-high price level as ideal,
and agree it Is not only ideal but
a necessity. The strikes (and do
not mean the political CIO strikes
against Dewey in Albany or the
Lewis-promised strike on the eve Of
election) only indicate a demand by
unions to get ahead Of the price
fiuctuating economy. Yet the I'M
ions are always dissatisfied with
their last strike, and always plan
ming new one to get new wage
increase, which will force prices
even higher and cause plans for a
third strike they have not yet en-
visaged-but will.
Now all this talk Of budgets
(like strikes) Is silly In a fiuc-
tuating economy. What the
budget needs Is the same thing
that the unions really need If
they only knew it-namely. a
stable economy.
Budgets are and will be loose and
inexact in these days. Economy is
simultaneously demanded (and may
not be carried far enough) to keep
the budget from running away with
itself and to keep tax necessities
down. But actually you cannot say
that an expenditure will be limited
to this or that exact figure below
appropriations-not with any conf
dence. You may have to pay more
for less than intended.
Yeu take the expert advice Of
those who know the sl,hincf-