Evening star., 1946-01-21
Partial Text Of Presidents Budget and State Of the Union MESSAGE

authorities and the Federal Gov
ernment. This legislation would
make permanent the National
Housing Agency and give it author
ity and funds for much-needed tech
nical and economic research. ."
Where private industry cannot
build, the Government must step
in to do the job.
Social Security Revision.
The President asked Congress to
revise the Social Security Act to
cover self-employed persons, agri-
cultural and industrial workers and
employees of nonprofit organizations.
He also asked liberalization of
unemployment compensation and
passage of health insurance act
which would provide prepaid med
ical care.
lT'he President also recommended
that the Federal Government grant
financial aid to the States in i'm
proving their educational systems)
The rapid reconversion of the
Federal Government from war to
peace is reflected in the demobili-
zat1on OF its civilian personnel. The
number of these employees in con-
tinental United States has been re-
duced by more than $1,000 from the
total of approximately 100000 en-
ployed in the final months of the
war. I expect that by next June
We shall have made a further re-
duction of equal magnitude and that
there will be continuing reductions
during the next fiscal year. Of the
special wartime agencies now re-
naming, only few are expected to
continue actively into the next fiscal
year,
Asks Higher Pay.
The elimination last autumn of
overtime work for nearly all Federal
employees meant sharp cut in their
incomes. For salaried workers, the
blow was softened but by no means
offset by the increased rates of pay
which had become effective July /.
Further adjustments to compensate
for increased living costs are re-
qulred. Moreover, we have long
needed general upward revision of
Federal Government salary scales
at all levels in all branches-legis-
latlve, judicial, and executive. Too
many in Government have had to
sacrifice too much in economic ad-
vantage to serve the Nation.
Adequate salaries will result in
economies and improved efficiency
in the conduct of Government busi-
ness-gains that will far outweigh
the immediate costs. I hope the
Congress will expedite action on SAL
ary legislation for all Federal en-
ployes in all branches of the Gov
eminent. The only exception
would make is in the case of work
ers whose pay rates are established
by wage boards; a blanket adjust
ment would destroy the system by
which their wages are kept alined
with prevailing rates in particular
localities.
Covers Federal Employees.
/ hope also that the Congress may
see fit to enact legislation for the
adequate protection of the health
and safety of Federal employees
Tor their coverage under a system
OF unemployment compensation, and
for their return at Government ex-
pense to their homes after separa-
ton from wartime service. ''s
CThe President recommended that
the Congress pass legislation to en-
able the people of Puerto Rico to
determine their future relation to
the United States, to grant Hawaii
immediate statehood and to give
that status to Alaska when the
people there desire it.
(He recommended that the Virgin
Islands be given an increasing
measure of self-government and
that economic aid be extended to
the Philippine Islands.
with regard to the Distrist, he
said:
("The District of Columbia, be-
cause Of its special relation to the
Federal Government, has been
treated since 1900 as a dependent
area. We should move toward a
greater measure of local self govern
ment consistent with the constitu-
tional status of the District. We
should take adequate steps to assure
that citizens of the United States
are not denied their franchise
merely because they reside at the
Nations Capital.")
| Ill. THE BUDGET FOR THE
FISCAL YEAR 1947.
For the first time since the fiscal
year 1880 the budget for the next
fiscal year will require no increase
in the national debt.
Expenditures of all kinds. au-
thorized and recommended, in the
next year are estimated at lust
above 35.8 billion dollars. Net re-
ceipts are estimated at BIS billion
dollars. The estimated difference
OF 4.3 billion dollars will be
met by a reduction in the very sub
stantial balance which will be in the
Treasury during the next fiscal
year.
A large part of the activities out
side defense and war liquidation.
aftermath of war, and international
finance.
The budget total for the next
fiscal year, the year that ends on
June 30, 1947. is estimated at Just
above 35.8 billion dollars-about a
third of the budgets for global war,
although nearly four times the pre-
war budgets. This estimate is based
on the assumption that a rapid
liquidation of the war program will
be associated with rapid recon-
version and expansion of peace
time production. The total includes
net outlays of Government COR
| porationS. **
Although allowances for occupa-
tion, demobilization and defense are
drastically reduced in the fiscal year
l947, they will still amount to a
per cent of the total budget. The
so-called aftermath of war" ex-
penditures account for a further 80
per cent of the total. The total of
all other programs, which was dras-
eically cut during the war, is in
creasing again as liquidation of the
war program proceeds and renewed
emphasis is placed on the peacetime