Evening star., 1948-08-16
Budget Juggling
10 Truman
Republicans
President Forecasts
ST, 500, ,000, 900 Deficit
By June of l949
By Joseph A. Fox

President Truman was en-
gagged in another slugging match
with the Republicans today az
his forecast that the Govern
ment will be 81 500, 900, 900 in the
red next June brought charges
from the opposition that the
figures were being juggled for
political effect.
Mr.. Truman's critical midyear
budget review, made public last
night, blamed the Republicans "ill-
timed" $4,000, ,0Oo, 900 tax cut for get
ting the Government in the finan-
cial hole again. But the COP
spokesman countered with the as
sertion that the Treasury will have
five to six billion dollar surplus
when the fiscal years ends June 80,
and that there definitely will be
enough to cut down on the national
debt and perhaps to cut taxes again.
Sees 1000, 900, 900 Outlay.
Presenting revision of the bud
get figures that went to the Capitol
IN January, Mr.. Truman said that
Federal spending for the fiscal year
will hit a near peacetime record in
excess of $42,000,00000 or $6,000,-
100000 over last years total. New
money for defense, plus Marshall
Plan expenditures, account primar-
lily for this situation.
And instead of the record $780,
100000 surplus of last June, Mr..
Truman declared, the Treasury will
be running $1,5000 100000 behind,
and face a return to deficit spend
ing.
1t was the same argument he used
in vetoing the Republican tax bill
which was enacted after he had
beaten two earlier tax reduction
measures in the Eightietb Congress
by vetoes.
Actually, even if Mr.. Truman's
figures are borne out, the Treasury
books will show an adjusted surplus
of $1500, 900, because Congress
specified that $4,000, 100000 of last
years excess funds should be shifted
to this years accounts to help cover
foreign aid costs. Mr.. Truman said
that was convenient bookkeeping
device" to yield paper surplus"
Urges Debt Retirement.
Indeed, he asserted" as long as
the present fiscal outlook prevails,
we may face an expanded debt
even in a period of high national
income when financial prudence
clearly would indicate continuing
debt retirement"
The Presidents review had been
distributed Saturday, and in con-
sequence, by the hour set for re-
lease, the Republicans were ready
with counterblasts.
Just another campaign speech"
said Chairman Bridges of the
Senate Appropriations Committee,
who insisted that instead of the
Truman-predicted deficit, there
would be surplus that will not be
less than $4,000, 900, ,000."
Chairman Millikin of the Senate
Finance Committee described the
PreSldent'S criticism as another OF
the wierd distortions which are
coming from the White House while
its occupant is a nervous candidate
for reelection"
Sees $4,000, ,0eO, 900 Surplus.
The Coloradoan insisted that even
Mr.. Truman's own figures, when
viewed ION the basis of present real
tiles" indicate a surplus of "over
S., 900, 100000"
President Truman estimated re-
ceipts for the current fiscal year at
$40, 700. 100000 and expeditures at
$42 200 100000. This was an up
ward revision of the January spend
ing estimates by $2,609, 900 900, and q
downward forecast of $3,744, ,000, 900
on income.
This sharp reversal eliminates
one of the principal forces that have
been restraining further inflation,"
the President said, adding that the
public debt was reduced by $6,000,-
(See BUDGET, Page A-5.)