Evening star., 1948-01-12
Budqet Of Near 40 Billion Asked,
Peacetime High; Hot Fight Due;
Truman Bars Federal Pay Boosts
Living Cost Curbs
Are Preferred to
Larger Salaries
By Joseph Young

S~SSf"
President Truman in his bud
get smessage today announced
his opposition to cost-of-living
pay raises for Government en-
ployes at this time.
Mr.. Truman told Congress he was
"Llot recommending" pay boost
for Government workers because of
the inflationary effects it would
have.
The President, however, left the
door open for a possible Federal
employees pay raise recommended
ton later on if Congress doesn't 90
along with him on his anti-infla-
ton program.
The budget indicated no sharp
personnel cuts beyond the continued
attrition from the wartime peak.
In his passing touch on. the pay
raise question, President Truman
declared:
"We are all aware of the impera-
tive necessity for preventing further
imitation. Both the expenditure and
revenue proposals of this Budget are
designed to avoid inf1ationary effects
wherever possible"
Raise Not Recommended.
The President said, "I am not rec
ommending at this time cost-of -liv-
ing increases in pay for military
and civilian Government personnel,
nor cost-of-living increases in the
benefits OF our veterans, social in
surance benef1ciaries, retired Fed
eral employees, and other similar
groups.
"The rapid increase in living costs
during the last 18 months has
placed a serious burden on these
groups. Yet, to Offset the cost-of-
living increase since the last time
pay or benefit rates were advanced
for each group would add at least
50, 400, 100000 to budget expenditures
in 1949-apart from increases that
would be paid from the trust funds,
This large expenditure would add
greatly to the inf1ationary pressures
in our economy.
"The wiser approach, which I have
proposed to the Congress, is to enact
a comprehensive program to hold
living costs down. Enactment OF
that program will give relief not
only to Federal personnel and an
nuitants, but to our citizens gener-
ally. In the event that the Con-
gress does not provide controls ade-
quate for this purpose, may have
to recommend further adjustments
in pay and benefit rates"
Retirement Bill Excepted.
Although he mentioned retired
Government workers in his message
White House officials said that the
President was not referring to the
LANCER = Chavez Stevenson retire
ment bill when he said he was
against cost-of- Living benefit in
creases for retired Federal employees
1t was explained that the omnibus
civil service retirement bill, which
provides among other things for in
creased annuities for retired Fed
eral workers, is not considered in
f1ationary because of its estimated
low cost. and consequently there is
no White House objection to its
passage.
In regard to the Presidents po-
sition on pay raises, Federal officials
said today the Administration feared
that its sponsorship of a Fedora,
employees pay raise might set of
another round of wage demands ir
private industry, thereby defeating
the. purpose of its anti-inflationary
program.
Federal employees groups were dis.
appointed by the Presidents failure
to indorse the various pay raise bills
now before Congress, but union of
flcials said they will not give ur
hope"
Union Still Hopeful.
1--WE still hope that Congress will
pass pay BILL" one official said
And if it does, I think the Presi-
dent will change his mind and sigr
the bill"
Other officials were not quite sc
optimistic, declaring that the Presi.
dents statement might have the
effect of retarding action on the
bill in Congress.
The Senate Civil Service Com.
mittee will open hearings on Fed
eral pay raise legislation on Thurs
day. No date for hearings has beer
set by the House Civil Service Com.
mittee. Sponsors of the various bill.
plan to use as their leading argu.
ment the fact that Government EN-.
ployes have Jagged considerably be-
hind private industry workers in Sc
curing pay raises since living cost:
began to climb in 1899.