Evening star., 1949-05-18
Congress Must Make
Decision in so DAYS
On Deficit Financinq
Budget BoIonee Unlikely
For Many Years to Come
If Spending Forces Win
By David Laurence

make a fateful decision. It may
affect the course Of our economic
life for a decade or more. 1t may
weaken America as a world power
or it may strengthen Americas
position as the bulwark Of the
postwar world.
The decision relates to whether
the United States is to embark
on an era Of deficits in the Federal
budget. II 1t does, there may not
be another balanced budget for
many years to come. II deficit
financing comes, economic
troubles viii multiply and then
aid to Europe will be jeopardiZed.
The struggle is between the
forces that want to spend and
those that want to save.
Means Buying Of Votes.
Politics and selfish lust for con-
tinuance in political Office are
back of one, and fear Of economic
chaos is back OF the other.
In such a contest-which, in
reality, means buying votes by
bribing a minority segment of an
uniformed electorate that can
hold the balance Of power in elec-
tions-the chances favor the poll
ticians who want to do the brib-
ing. An informed majority can
overcome any such minority.
The Federal budget which
President Truman recommended
last January is close to $42 ,000.-
100000. He now wants to increase
1t by nearly $4,000. 100000. There
are projects pending which have
the administrations blessing and
which could add several billions
more. Receipts are estimated at
$39, ,000, 100000.
In the White House is practi-
cal politician. II Congressmen
don't vote for administration
measures, Mr.. Truman threatens
to withhold appointments they
favor. When the Federal Govern
ment votes money that benefits
q particular group Of voters, Mr..
Truman exacts his price-support
at the polls. If a group of citizens
doesn't vote for him though it
has received financial benefits.
he calls that group "ungrateful."
Mr.. Truman's speech accepting
the Democratic nomination at
Philadelphia last summer. in
which he said labor and the farm
ers would be fungrateful" II they
didn't support him. could be re-
garded as q bit of campaign
oratory" but for the fact that
as late as two weeks ago. in talk
ing with a group of agricultural
editors. he again adopted the same
meretricious approach when he
said that in the last election "the
farmers apparently realized which
side Of their bread was buttered." "
AS long as a President Of the
United States sets the pattern IN
the handling of public funds and
gives the impression that 1t is
his own money and not the tax
payers that is being spent, 1t
will be difficult to get budget
cut.
Action Up to Congress.
Congress, by a coalition Of Re-
publicans and Democrats. must
therefore do the budget cutting.
It seems passing strange that this
Nation, which managed to live
without hardship only two years
ago under a Republican Congress
with $4,000, 100000 budget,
should now have to spend many
billions more.
The cry of Mr.. Truman for
more taxes at this time is at
variance with the advice Of his
own party leaders and the Presi-
dent IS own economic advisers.
Whatever were the mistakes in
reducing taxes couple years ago,
q greater mistake would be made
now in increasing tax rates. The
true answer Is to prune the
budget. It can be done. One way
is to pass all appropriation bills
now pending but require the head
of every agency or department
to regard its appropriations as an
overall sum and to require that
10 per cent be cut. leaving it to
each agency to determine from
which of It's many items the 10
per cent should come. The agen-
cies and departments know best
where cuts can really be made.
Some such approach is impera-
tive If the budget is to be balanced.
1t is no longer a job to be ex-
pected from the Executive, for he
wants to spend and spend. The
country can be spared an eco
nomic catastrophe only If men,
bers Of Congress are alert to the
dangers that lie ahead. and that's
where an aroused public opinion
becomes essential.
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