Evening star., 1949-05-30
Mcclellan Sees HOPE
OF Trimming Budget
As Expenses Mount
by the Assoeietsd Press

by the Assoeietsd Press
The talk Of cutting Government
spending kept rolling today. with
Chairman Mcclellan Of the Sen
tae Appropriations Committee
saying:
II think some way can be found
to make more cuts"
Senators johnson, Democrat, OF
Colorado and Mcclellan, Demo-
crat. Of Arkansas, in separate in
teryiews also expressed hope OF
economy. but they did not go so
far as to say that it would come
to pass.
Despite much demand for trim
ming expenses. Congress has not
done much In q way that viii
stick. Senator Mcclellan noted
there have been some savings, then
added: But they are not enough"
Private predictions came this
week end from administration
sources that spending actually will
be more in the new fiscal year
beginning July l than it has been
during the year now ending. Fur
ther. these officials said spending
will continue to increase in the
fiscal year beginning July !, 1851.
OutIays Are Noted.
These officials, who asked not
to be quoted by name, said that
greater spending is to be expected
from increased outlays for such
things as farm price supports, the
handling Of unemployment COM
pensation funds and costs Of job
placements.
While appropriations are pri-
marily q matter for Senator Nc
Kellar's committee, economy pro.
posals are coming up also before
the Senate Expenditures Com
mittee, headed by Senator Nc
Clellan.
President Truman has spending
plans for about 81, ZOO. .000. 900 in
the coming fiscal year. and Sena-
tor Mcclellan said a preliminary
survey indicates that much of I'll
is untouchable." Veterans bene-
flts, interest on the public debt
and other governmental obliga-
tions fall into this category.
Senator Mcclellan said his
committee will ask budget heads
and top economic advisers to de-
tail how they would cut expendi-
lures "one. two and three billion
dollars, to Offset an impending
Federal deficit corresponding to
one Of those amounts"
A number Of economists say
that Government revenues. from
taxes and other sources, will taper
of in the next fiscal year.
Tax Increase Possible.
That would mean the Govern
ment would spend more than 1t
takes in. or that Federal taxes
would have to be increased.
Senator johnson, who has sup
ported some Of the futile Rcpub-
lican efforts to trim individual
appropriation bills, said he will
support "any reasonable effort to
cut appropriations and balance
the budget. ... ...
'.But I don't know how that can
be done without producing q. veto
by President Truman unless he
changes his plans on spending" ~
Senator johnson said.
Senator McClellan's committee
hearings will consider two sep
arate economy proposals that
might well provoke q veto.
. One by Senators Tydings, Dem
ocrat. Of Maryland. O'Conor.
Democrat, Of Maryland. and Reed.
Republican, Of Kansas would d.
rect President Truman to reduce
the amounts expended from any
and all appropriations made for
the fiscal year ending June 80.
1850" by at least s per cent.
Another by Senators Wherry,
Republican, Of Nebraska. Bridges,
Republican. Of New Hampshire.
and Ferguson, Democrat. OF
Michigan. aims at balanced
budget next year through spend
ing reductions Of from 5 to 10I
per cent.
Critics say both moves ask
President Truman to make de-
cisions on cutting funds that Con-
gress was unable or unwilling to
S3n