Evening star., 1950-01-10
Deep in the Red

DS6p III tHS NcO
The depressing fact which emergeS from
the Presidents budget message is that this
country in the current and the coming
fiscal years will 60 about $11 600, 100000
into the red.
Despite the recession" of 1949, these
are relatively prosperous times. For fiscal
years 1850 and 1851 the estimated Federal
Government tax collections will be more
than $65, 900 100000. But this is not enough
to make ends meet. The President fore
casts for this period a deficit OF close to
$11 ,000, 900 000-and there Is no assurance
that it will not be greater.
Clearly, this, If followed long enough,
is the sure road to national bankruptcy
So what are the prospects of getting back
on an even keel, of balancing our budgets
and putting something aside for retire.
ment of the national debt, which, accord
ing to Mr.. Truman, will have climbed to
the astronomical total of 1868 ,000, 900, ,000-
more than quarter of trillion dollars
by the end of the next fiscal year?
The President stoutly defended his new
deficit budget, and talked hopefully Of
better things to come.
year ago Mr.. Truman spoke of
balanced budget, with a substantial sur
plus for debt retirement, as essential"
This year he takes different tack. He
contends that the spending estimates
which he put before Congress have been
cut to the bone. In other words, he is
resigned to the inevitability of a large
deficit. His defense of that position, how
ever, is vigorous one. Stated in summary
form, Mr.. Truman argues that the outlays
proposed in the 1851 budget, II per cent
of which are to pay the cost of past wars
and to finance our efforts to secure real
peace, either cannot be reduced because
of commitments made, or can be reduced
only at the price of sitting the growth of
the national economy. And If this latter
alternative is taken, he contends, the result
will be to kill off new sources of revenue
for the future and raise the prospect of
even bigger deficits instead of balanced
budgets in the years to come.
1t Is difficult to appraise the merit or
lack of merit In this presidential argu-
ment. There is reason to believe, however,
that reductions and economies greater
than Mr. Truman is willing to countenance
can be made in domestic items in the
budget without injury to the Nation. This
is view that is supported by the recent
report of the Committee for Economic
Development. Senator Byrd has given a
chapter recital OF places where
greater economies can be made.
Yet even If one assumes that there Is
room for greater economy, the real ques-
ton is whether there exists the determine
tion to make the cuts. 1t is not particularly
reassuring to read in the budget message
that the major question" in the Presi-
dents mind is not whether we are spending
too much ($12.5 billion) on domestic items,
but whether the budgetary requirements
OF the major national security and war
connected programs have constrained us
to undertake too little toward supporting
and stimulating the realization of our
country's great potential development"
Nor should one be misled by the cry for
economy that is going up at the Capitol.
1t is all right to hope for the best, and
If there is to be any closing of the budgetary
gap the initiative will have to come from
Congress. But this is an election year,
and unhappy experience has taught the
lesson that In such circumstances it is at
least an even bet that Congress, responding
to the demands of pressure groups will
add to, rather than subtract from, the
Presidents spending estimates.