Evening star., 1946-08-18
Army and Navy Delay
Report on Budget Cuts
Demanded by Truman
BY the Associated Press

ny me R~sociofed FfeSs
President Truman's economy
drive showed progress last night,
but word was lacking from the
Army and Navy on the biggest cuts
he requested - 81 $50 100000 from
military outlays
Not until next week, a Navy
spokesnen said, can that service
report whether it viii be able to
comply with proposed $650,0oO,-
600 slash in authorized expendi-
lures for the fiscal gear s1947.
The Army repeated 3 ii would
comply fully" with a $124. 900 900
pairing of civilian works projects
However, an official said the War
Department is now studying the
White House request for a $1,000,-
100000 slash in its spending for
military purposes, and cannot yet
state its position.
Ship Construction Cut.
An informal survey of progress
on the economy orders issued two
weeks ago revealed. however, that
the Maritime Commission will re-
duce new ship construction to less
than S60,000.000 This more than
meets Mr.. Truman's request for
so per cent cut in new shipbuilding
1t means cancellation or deferment
of seven fast new passenger vessels.
The Budget Bureau got ready,
meanwhile, to swing its own econ
omy cleaver Next week it will
announce employment ceilings on
all agencies. forcing the release of
an unrevealed number of workers
TO cut Government payrolls.
Following up his August l fore
cast of Sl,900,000, 900 Federal
budget deficit for fiscal 1947, Mr.
Truman asked all agencies to trim
their spending. He sent letters to
eight agencies making specific sug-
geStions for cuts and banned the
awarding of all public works con-
tracts until October /, while the
projects are reviewed.
Republicans SkepticaI.
The economy campaign was
greeted skeptically~in Republican
and some other quarters. The Ma
tional Association of Manufacturers,
for instance. said in the NAM
News" that the small deficit fore
seen "unquestionably is over -opti-
mistic." Senator Byrd, Democrat
of Virginia. has charged Federal
jobs have been manufactured" to
retain employees on the Government
payroll.
In each of the eight cases where
special letters were sent-mostly
agencies concerned with public
works-Mr. Truman asked a prompt
reply describing the steps being
taken.
The agencies generally indicate
they will be able to report budget
cuts, although only one letter has
yet been sent to the White House.
This is from the Tennessee Valley
Authority, and its contents have
not been made public.
Public Roads Administration land
Federal Works Agency. of which it
is part) has sent letters to all
States, requesting that they hold
road contracts to minimum so as
to hold down the matching funds
which the Government must supply
Officials believe only half or less of
the s500,000,000 highway program
will be spent. partly because con-
struction costs are so high that
States are rejecting all bids on many
projects and waiting until costs
come down.
Interior to Make Cut.
The Interior Department expects
to reduce an authorized 5000 5000
Reclamation Bureau program to
s35,000,000, as requested. Virtually
no new reclamation projects of any
size will be started this year.
The Agriculture Department prob
ably will make some preliminary
reply to the Whites House shortly
but will need weeks to work out
exact cuts. The forest roads pro-
gram. for instance, is supposed to
be cut. but is intricately tangled
with the urgent program OF cutting
access roads into timberlands in
order to get out more lumber for
the housing program. The White
House says the access roads cam
paign must go ahead.