Evening star., 1949-12-10
The Political Mill
Coming Budget Message
To Be Most interesting
President Will Have to Choose
Between Spending and Saving
By Gould Lincoln

Between Spending and Saving
By Gould Lincoln
No message that President Truman will
send to the second session of the 81st Con-
gress will be more interesting-or more
important-than his forthcoming budget
message. After all is said and done, Mr..
Truman will have to choose between tho
advice of the spenders-like James Roose-
tion for Governor Of California. on the one
hand, and the savers, like Senator Byrd Of
Virginia, on the other.
Faced with a Government deficit at the
close of the present fiscal year Of from
SIS 900 100000 to $7,o00,o0o,000 the Presi-
dent is giving earnest consideration to
his decision. There are signs, too, that many
run-of- -the-mine American voters are be-
coming exercised over the headlong manner
in which the Government is running billions
deeper into debt.
Mr.. Truman has said in the past that he
saw no way Of bringing about a balanced
budget-With the outgo no greater than the
income-at this point except through an
increase in taxation. He has also said he
wished some one would come up with some
other answer to this problem. AS if in an
swer to his challenge, Senator Byrd has
done so.
Would Limit Spending.
The Virginian, for years chairman of the
Joint Committee on Reduction Of Nom
essential Federal Expenditures, has made
public budget plan for. the Government
which would limit spending for the fiscal yea1
1951-which begins next July Ito $36,000..
100000. This would be $500 100000 less
than the s43, SOC, 100000 which Senator Byrd
estimates the Government will spend in the
present fiscal year. And also, according I'd
the Senator's reckoning, If revenues are
maintained, such a cut in spending would
result in balanced budget.
Mr.. Byrd insists that Government spend.
ing can be limited to $4,000, 100000 in
fiscal year 1851 without harm to national
defense or Government services. In 1000.
word statement he goes into detail, showing
where cuts can be made. The President
however, has shown little inclination in the
past to take the advice of the Virginian-
indeed, the President has expressed an off.
the-cuH opinion there are too many Byrdi
in Congress. Further, the President, judginS
from the reports from Key West, is planning
to urge on Congress the passage of thoss
parts Of his legislative program which failed
to be enacted at the last session. Should
this legislation be put through, instead oi
reducing Government spending it would add
billions to it.
Mr.. Roosevelt has pictured the virtues Of
deficit spending and declared the American
people had better learn to like it-that
deficit spending would be the order OF tht
day for long time to come. With Federal
debt at the close of the fiscal year neM
June around $260,o00 900 900, the question
is how much longer can deficit spending bs
carried on without bringing the whole edifica
crashing down. Mr.. Byrd, for his part, say,
the country is walking tight rope; tina,
q HoY,raeciNy1 l.
fatal results
Slight Chance Of Tax Boost. ">T
Whether President Truman likes it or not
the chances for increasing taxes at the com.
ing session Of Congress are so slim as to bl
almost negligible. Members Of Congress, wht
must face reelection campaigns, will hest.
tate seriously before increasing q tai
burden that is already heavy. Also. If taxei
are increased it will mean higher prices k
the consumers Of all kinds Of goods. Thu
combination Of higher taxes and highe1
prices might prove devastating issue Ii
the 1850 campaign.
Senator Byrd stuck another knife into tai
increase, pointing out that when the Presi.
dent recommended tax boost last year.
recession followed until the proposal wal
withdrawn. He said that If the President
again proposes tax increase. the effect
may be the same and new recession might
go far.
If the President followed MIR. Byrd's advice
his budget Of expenditures for domestic
civilian functions and services would be cut
$4,000 .000,o 600; for veterans, foreign aid, and
national defense, the cut would be IS, TOO.
100000. The interest on the public debt
would be up 500 1000, 900 due to what hap.
pened in the fiscal year 1850. Such a pro.
gram. Senator Byrd figured would result in
a $4,000, ,000, 900 surplus.