Evening star., 1946-08-04

to exercise the utmost economy.
During the years of fighting, flnan-
cial considerable had to be subor-
dinated to victory with the least
sacrifice of lives. This urgency is no
longer present. Today Government
expenditures can and must be scru-
tinized minutely to obtain the maxi
mum economy. The present inf1a-
tionary situation makes it impara
tive that expenditures be cut to the
minimum compatible with the
responsibilities of government. All
deferrable programs must be post
poned.
New Bills Increase Spending.
Recent legislation has added con-
siderable amounts to Federal ex-
penditures for the present fiscal
year. I shall use all the powers
available to the executive branch for
reducing expenditures which are
not directly determined by legisla-
ton and which can be postponed or
reduced without serious harm to ma
tional security and welfare.
These measures of budgetary con-
troll will. in the aggregate, keep
expenditures in the current fiscal
year at least % billion dollars below
what they otherwise would have
been.
have directed the Secretaries of
War and Navy to curtail military
expenditures to the level contem-
plated in the January budget, ex-
cept for terminal leave pay and Ger
tain additional naval programs
which the Congress authorized upon
my recommendation. My action re-
quires the War and Navy Depart
ments to offset the recent military
pay increases by corresponding re-
ductions in other areas. In addi-
ton. I have instructed the Secre-
taries of War and Navy to examine
the feasibility of still further reduc-
ing the military programs without
impairing national security and the
ability to fulfill our international
commitments.
In view of the rapidly mounting
payments for veterans pensions and
benefits, the Administrator of Vet
erans' Affairs has been asked to re-
view and tighten certain standards
for such payments in order to pro-
tect both the rights Of deserving
veterans and the national pocket
book.
I am addressing letters to the
heads of those agencies which have
direct charge of public works. and
also to those which have RESPONSE
bility for grants in aid or loans, re-
questing them to take all measures
TO secure the postponement of pub
lie works at the present time so
that the Government competes as
little as possible for scarce labor
and materials. have also given
instructions to postpone ali pur-
cnases of automobiles, Office equip
ment and other items in short sup
ply except In emergency cases.
Measures Are Maximum Economy.
Furthermore, various agencies will
absorb the major part of the re-
Gently enacted pay increases.
These measures of budgetary con-
troll. achieved by searching and
drastic action. reflect the maximum
economies I have been able to Sc
cure by executive processes at the
present time. +.
In view of action the Congress has
taken on price controls, I must re-
peat-with added emphasis-my rec
ommendation OF last January that
no tax reduction be made until the
infationary situation has passed.
Budgetary policies have become a
major weapon to fight the kind of
boom and bust which followed
World WarI
2. ORIGINAL AND REVISED
EXPENDITURE ESTIMATES.
I am deeply concerned by the in
crease in the present estimates of
expenditures over the tentative es-
Inmates which I transmitted in jan
uary Total budget expenditures
for the current fiscal year, including
net outlayS of Government corpo-