Evening star., 1949-05-04
Johnson, Byrd
Warn Chamber
0fU. ). Deficits
Alarming Economic
Situution Is Seen
If Cold War Ended


businessmen today Of big Fedora
deficits and one of them, Senator
johnson, Democrat, of Colorado
asserted that II it was not fol
the Soviet-imposed cold war the
economic situation in the United
States would be alarming.
IF Russia suddenly decided Il
be good neighbor there would bt
hell to pay" he said.
Senators johnson and Byrd
Democrat. of Virginia were amone
the speakers at five different
luncheons held by the United
States Chamber of Commerce
today in connection with its 37tt
annual meeting.
10-BiiIion Deficit Seen.
This fiscal year will find us
$4,000. 600, 900 in the red and the
next fiscal year we are likely to
have a $4,000, 100000 deficit,
Senator johnson said. He is chair.
man of the Senate Commerce
Committee and addressed lunch
con which heard discussions o1
transportation trends at the Hotel
StatIer.
II need not remind you thai
deficit spending is alone RESPONSE
BILE for whatever imitation we
have" he said. IF the present
military spree and the European
aid program are not drastically
reduced by next year, this Nation
will be launched ION the widest
inflationary bingee of all history
Only Joseph Stain and his polit-
buro can be the benef1ciaries."
He asserted that the $17.000,-
100000 Marshall Plan, plus the
10000, 900, 900 rearmament pro-
gram for Western Europe, plus the
annual current domestic $15,000.-
100000 military expenditure" is
resulting in an economic fools
paradise.
Sees Disaster" Only Delayed.
Disaster is not being halted
he said. TT is only being delayed. u
Senator Byrd's prediction OF
deficits were $815 600, 900 for fiscal
1949, SO. zoo. 100000 for fiscal 1850
and $7,000.0 100000 for fiscal 1851
He assailed the tying of Federal
expenditures to long-term COM
mitments in his address at a
meeting on taxes and expendi-
lures, also at the Hotel Statler
He said this country is obligated
by long term domestic civilian
commitments to expenditures run
ming to $1s,oOo.ooo. 1000 or more.
: The housing program may ulti-
mately cost $4,000. 100000, he
said, and direct Federal aid to
education would open Pandora S
box of obligations. He said the
North Atlantic Pact is In the ma
ture of an indefinite commitment
to rearm the Allied nations.
Assails Brannan Plan.
Under current circumstances, he
said, another peacetime sortie
into deficit financing would shat
ter public confidence in Federal
securities" x.
Adoption of Secretary of Agri-
culture Brannan's plan ito under
write a producer distributor-con-
sumer Utopia" Senator Byrd said
sis the most horrible example OF
long term commitments"
The Brannan plan was also a
target for attack by the national
chambers Policy Committee
which reported out a policy state
Iment to be considered by mem
bers tonight. The statement, ac-
cepted by the chambers Board OF
Directors, opposed the Brannan
plan on the ground it would tend
to bring about complete regi-
mentation of agriculture. Its
adoption by the members is re-
garded as certain.
Steel Executive Speaks.
Another speaker at the taxes
and expenditures meeting was
Hiland G.. Batcheller, president of
the Allegheny-Ludlum Steel Corp,
OF Pittsburgh. He said the sources
of risk capital have been mar
rowed and in some respects dried
up by tax policies.
AS an example of the need
he said millions of dollars Of risk
capital will be required to de-
velope new metal weighing only
half as much as steel and twice
as strong.
Speakers at the transportation
luncheon, in addition to Senator
johnson, were Andrew H. Brown
transportation commissioner OF
the Cleveland Chamber of Com
merce; Fairman r. Dick Of New
York, who spoke from the inves-
tors point of view. and Sidney
L. Miller Of the University OF
Pittsburgh.
Naturalization Discussed.
The general subject was the
threat of naturalization of trans
port. Mr.. Brown said the very
nature of transportation supplies
the basis for a constantly recur-
ring naturalization threat.
4 Another luncheon meeting was
concerned with labor law changes
There was a general feeling of
qualification over the passage OF
the Wood bill by the House
yesterday.
Vincent P. Ahearn of Washing
ton. executive secretary Of the Ma
tional Sand and Gravel Associa-
ton, told the meeting he did not
share the notion that injunction
power is effective whenever strike.
produce an emergency. He saic
also the normal process of collec.
tive bargaining is weakened wher
machinery is set up to dispose ol
unsettled issues when bargainin,
fails.
Predicts Scarcities.