Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-10-19

IlelO JUST got llUule TedllStlC anu
ing and their theories of price
making.
Deplores Deficit Spending.
II am not happy when I see
Government slipping back into
deficits as a way of life in a
period when production and en-
ployment are high, instead of
putting its financial house in Or
der and outstanding reserves to
support the economy if less pros
porous times overtake us.
I'm sum, if we are to maintain
the march of economic progress,
we must, individually and as
groups, in private business and in
politics, display industry, prudence
and self-discipline
1--WE musb recognize that we
can't get more out of the eco
nomic system than we put in, that
collective bargaining in good faith
and on solid facts is the road
to a workable distribution of toCa.
product. and that monetary and
fiscal tricks have no power of
magic but are a slippery road to
misery"
| Advised of DR.. Nourse's state
ment, Senator O'Mahoney re-
torted: The cry of deficit spend
ing. except when uttered by per-
sons who know nothing about the
facts of government, is merely a
political argument against pro-
gressive policy" q,
| Senator O'Mahoney told a re-
porter he does not regard Dr..
Nourse as a man who is ignorant
of the facts of government. He
made it clear he was charging Ghe
economist with making a political
argument.
Senator O'Mahoney many times
has urged DR.. Nourse to testify
at committee hearings on Mr.. Tru-
mans economic programs. DR..
Nourse always has refused on the
ground he does not believe the
Presidents economic advisers
should be drawn into a possible
political controversy.
Senator Byrd, Democrat, Of
Virginia Endorsed DR.. Nourse' s.
statements and forecast Federal
deficits totaling $4,000. 900 900
this year and next. He said there
is a possibility of permanent
deficit financing" unless the Gov
eminent cuts it's spending.
Or. Nourse is one of the great
est economists. I believe. in this
country today" Senator Byrd said
in an address before the same
group addressed by DR.. Nourse
yesterday.
Byrd's Deficit Estimates.
Senator Byrd estimated that
$35, 900 ,000, 900 has been spent on
foreign affairs since the war. The
prospective deficit for this fiscal
year, ending next June 80, he said,
is $1,000, 900, 000-"or just about
the amount we are spending in
Europe"
Senator Watkins said DR.. Nourse
was absolutely right in following
that policy.
II am convinced" he added.
that Keyserling and Clark, in tes-
timony to our committee in sup
port of the Presidents policies,
have become active politically.
Il sympathize with DR.. Nourse
in his dislike of that sort of thing.
I regret that he is resigning, but
I am not surprised"
Senator Ferguson, Republican,
of Michigan called the Senate's
attention last night to DR.. Nourse's
remarks about deficit spending.
He did so in saying that Congress
at this session has approved Gov
eminent spending of $50,991 49,
e97.28.
Flag of Warming
Senator Ferguson said the speech
amounted to a flag of warning"
and added that neither the ad-
ministration nor the present Con-
gress has displayed sound eco
nomic sense" There can be no
progress under deficit spending, he
said.
Senator O'Mahoney said that
IF this country were not under
the obligation to spend huge sums
for national defense and to back
1.-THE international struggle to
establish world peace, there would
be no deficit"
Senator Myers, Democrat. of
Pennsylvania also a member of
the Economic Committee, COM
mented similarly.
"Once the peace is won," Sem
ator Myers said, there will be a
reduction in military and foreign
aid spending which not only will
balance the budget but provide a
stable surplus
Senator Douglas, Democrat, of
Illinois. another member Of the
joint committee, went along with